5 Legal Mistakes by HRs That Could Cost Companies Millions of Dollars

3 min read

Must read

Microsoft’s Customer Experience Playbook

Here are 3 pillars of having a strategic framework for customer experience transformation. Download to know more.

Delivering Personalized Experiences in Times of Change

Deliver personalized experiences and foster higher customer engagement with Microsoft Dynamics 365. Access this eBook to know more!

Reimagine The Way You Work With Microsoft 365 Today

69% of workers spend up to 60 minutes a day switching between apps—up to 32 wasted days a year. Download the white paper to learn more.

The IT Roadmap for Digital Business Transformation

Today we all have a roadmap to successful digital business transformation, but does yours lay a solid foundation for a smooth transition?
blank
Suraj
Suraj is a passionate blogger who writes for a global audience. His writings can be inspired from a myriad of topics to anything distinguishable that keeps a reader hooked. He has written for many websites and also been showcased as a guest author. Suraj lives in India right now.

Some departments cannot afford mistakes, and HR is one of them. Missteps by an HR can cost the company millions of dollars. Legal mistakes by HRs are hard to ignore and can barely be rectified, once committed. Therefore, if you are an HR and never want to have a stain in your career, try avoiding the 5 mistakes discussed in this blog.

ALSO READ: 5 Benefits of RPA in HR and Payroll

Legal Mistake #1:  Asking discriminatory questions during the hiring process

Anyone could come back with a lawsuit if you raised questions that implied discrimination during the interview process. It is never appropriate for interviewers or HR managers to ask applicants questions around age, race, sex, disability, etc.

In many cases where such questions were raised, applicants have come back with a lawsuit. They might use such remarks and claim that it was the reason behind their rejection.

Legal Mistake #2: Nasty terminations

Ever watched the movie Up in the Air starring George Clooney? The movie highlights the importance of making layoffs and terminations easy and non-disturbing. The same goes for real life. 

When things get ugly between an employee and the organization, the termination needs to be very smooth and easy. Any kind of negative comment can invite a heavy lawsuit against the company. This could be one of the costliest legal mistakes by HRs in the list.

Legal Mistake #3: Prohibiting discussion of salary details

Almost every company’s HR asks you to never disclose your salary details under any circumstances whatsoever. This is a clear violation of NLRB or the National Labor Relations Act.

Few years ago, in St. Louis, NLRB issued a complaint against a Diaper Supply business after it fired an employee who discussed wages with another fellow employee. NLRB made the company reinstate the employee’s job and change its policy handbook.

You cannot forbid employees to discuss their wages with each other.

Legal Mistake #4: Not documenting conflicts and issues

Conflicts are an everyday thing in organizations, but some of them may take an ugly shape. And, when they do, it is important for HR managers to accurately document everything that takes place. From the reason behind the issue to statements used by involved parties, documentation during conflicts is a bare necessity. 

Not documenting conflicts can prevent you from producing ample evidence when a rogue employee sues using false claims.  

Legal Mistake #5: Inconsistent performance evaluations

Inexperienced supervisors have been quite infamous for impartial performance evaluations. The fall, however, comes down on the entire company, when employees suspect discrimination.

If you have something that you can add to this “legal mistakes by HRs” list, then please comment.

 

 

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Know What Great Managers Do Differently?

Effective management can be learned with good training. This is the point where great bosses are always a part of a great management process.

4 Most Impactful HR Mistakes to AVOID at All Costs

We are listing out 4 of the most impactful HR mistakes here. The question is, are you interested to find out if your organization...

How to Have an Honest Mental Health Conversation With Your Boss?

Breaking the stigma around mental health in the workplace is important. And breaking this stigma starts with leadership. Read this blog for some tips to help you get the conversation going.

8 Tips for WFH Productivity in 2021

When you work from home, you're less likely to leave the house and engage in regular activities. Here are the 8 tips that will maximize your WFH productivity in 2021. 

How AI Can Help Promote Employee Mental Health

Today, the spotlight is on employee health and well-being. Read on to explore how AI is helping HR to promote employee mental health.