Consequences of Operating Without a Competent HR Function

Employment

Discriminatory Hiring Practices (ads, screening, interviewing, selection)

Fines, Penalties, and Lawsuits (Title VII, Equal Pay Act, Age Discrimination in Employment Act, Title I and Title V of ADA, WLAD)

Out-of-date Employment Application

Fines, Penalties, and INS Violations (Title VII, Equal Pay Act, Age Discrimination in Employment Act, Title I and Title V of ADA, WLAD)

No Interview Skills Training

Increased Chance of Employee Lawsuits for Discriminatory Hiring (Washington Human Rights Commission Enforcement & Violation of Federal & State Laws.)

No Structured New Employee Orientation

Confusion, High Turnover, Incorrect Paperwork

No New Employee Reference Checks

Negligent Hiring, Fines, Lawsuits, and Turnover Due to Poor Hiring Decisions

Violation of Drug Testing Requirements

Fines and Penalties (ADA, DOT Regulations)


Group Benefits

Inconsistent Plan Administration

Fines, Penalties, Lawsuits, and Disgruntled Employees (Discrimination, ERISA)

Benefits Paperwork Error

Fines, Penalties, Employee Lawsuits, COBRA Violations (COBRA, HIPAA)

SPDs Not Distributed and Maintained

Fines (ERISA)

Cost Comparison and Poor Plan Design

Inadequate and/or Costly Coverage


HR Administration

Poor Documentation (I-9’s etc.) in Employee Files; Improper Disposal of Records

Fines, Penalties, Lawsuits, Evidence of Discriminatory Practices (Federal and State Discrimination Laws – IRCA, IIRIRA, RCW 19.215)

No EE0-1 Annual Report

Fines, Penalties (Equal Employment Opportunity Act of 1972)

No Affirmative Action Plans

Fines, Penalties, Loss of Government Contracts – Prime and Subcontractors (41CFR)

Improper Administration of Employee Leaves and Lack of Accommodations for Disabilities

Fines, Penalties (FMLA, USERRA, Washington Family Care Act, ADA, Workers’ Compensation, Maternity Leave, Jury Leave, Public Contract Laws such as EO 11246; VEVRAA; Rehabilitation Act)

No Employment Posters

Fines, Penalties

Out-of-Date Policies/Procedures/Handbook

Unintended Contract Formation Limiting Employment “At Will”; Inconsistent Policy Administration

Poor Workers’ Compensation Administration

Fines, Penalties, Lawsuits, and Increased Experience Ratings

Poor Unemployment Insurance Administration

Fines, Penalties, Lawsuits, and Increased Experience Ratings

No Review of Terminations

Fines, Penalties, Lawsuits (Title VII, Equal Pay Act, Age Discrimination in Employment Act, Title I and V of ADA, WLAD, State Tort Laws)

No Review of Layoffs/RIFs

Fines, Penalties, Lawsuits (WARN Act, Age Discrimination in Employment Act, COBRA, ERISA, FMLA, OWBPA, NLRA, State Tort Laws, WLAD)

No Employee Performance Documentation

Unlawful Termination Lawsuits; Lack of Employee Development; No Basis for Compensation, Performance, Retention Decisions, (ADEA, State Tort Laws, WLAD)


Training

No Annual Harassment/Retaliation Training

Increased Chance of Harassment or Retaliation Claims; Loss of Affirmative Defense Under Ellerth; Potential Individual Liability for Managers

No Interview Skills Training

Increased Chance of Discrimination Claims (Federal and State Discrimination Laws)

No Supervisory Training

Increased Chance of Lawsuits; Increase in Employee Turnover; Poor Morale and Productivity; Untrained Supervisors


Wage and Hour

No Minor Work Permit

Fines and Penalties

Poor Exempt/Non-Exempt Classification; Improper Independent Contractor Classification

Officer or Agent Individual Liability; Class Actions, Back Pay Penalties and Employee Lawsuits (FLSA, Washington Minimum Wage Act)

Poor Record Maintenance

Fines and Penalties (FLSA, Washington Minimum Wage Act, Washington Privacy Act)

No Compensation Plan

Increased Chance for Employee Lawsuits

Poor Compensatory Time Policies

Back Pay, Lawsuits (FLSA, Washington Minimum Wage Act)

Poor Practices Regarding Rest Breaks and Lunch Breaks

Fines and Penalties (Washington Minimum Wage Act)


Employee Investigation

Improper or Ill-timed Employee Investigations

Increased Chance of Lawsuits, EEOC Investigations/Fines, Violation of EEOC Investigation Guidelines, Violation of State and Federal Discrimination/Harassment


Safety

No Accident Prevention Plan

Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)

No CPR-Trained Employees

Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)

No MSDS Sheets

Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)

No First Aid Training and Equipment

Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)

No OSHA 300 Posting and OSHA 100 Maintenance

Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)

Unsafe Workplace

Fine, Penalties and Lawsuits (Management May Have Personal Liability If Negligent; Increased Workers’ Compensation Claims and Increased Costs to Employer)