The US Department of Labor (January 2020) noted that 8 out of every 10 businesses are not in compliance with all required employment practices.
- Misclassified (exempt or non-exempt) employees
- Pay issues
- Overtime policies
- Hiring and termination practices
- Drug testing violations
Companies with less than 50 employees must comply with 1,800 employment codes and adjust to an average of 200 code changes each year.
86% of shutdowns are linked to employment violations
According to the Journal of American trial attorneys (in their 2019 annual report), an employer with 20 or less employees has a 77% probability of employment related issues within the next 12 months.
- Companies with more than 20 employees can expect two unemployment-related matters per year. Service industries may expect the most – averaging nine per year.
- Companies with more than 20 employees can expect to have nine employee-related issues per month. Services industries may expect the most at 33, while healthcare will experience the least, at two per month.
- Per turnover $3,200
- Per employment violation (2019) $76,000
- Per worker’s compensation case: $22,000
- Per harassment claim: $225,000 (settled $135,000)
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