THE TOP 10 HR MISTAKES THAT LEAD TO EMPLOYEE LAWSUITS AND HOW SMART EMPLOYERS CAN AVOID THEM
At JorgensenHR, we often tell employers that lawsuits are rarely caused by a single bad decision. They’re usually the result of several preventable HR mistakes that create unnecessary legal risk.
The good news? Most of these issues can be avoided with the right HR strategy, consistent processes, and experienced guidance.
THE TOP 10 HR MISTAKES THAT INCREASE EMPLOYER LIABILITY
1. POOR PERFORMANCE DOCUMENTATION
One of the biggest mistakes employers make is avoiding difficult conversations. Managers tolerate poor performance for months, then decide to terminate the employee. The problem? Every performance review says the employee is “meeting expectations” or “exceeds expectations.”
When the documentation doesn’t support the decision, employers create an opening for claims of discrimination, retaliation, or wrongful termination.
2. FAILING TO EXPLAIN TERMINATION DECISIONS
When employees receive no explanation, they often create their own—and those assumptions frequently involve discrimination or retaliation.
Clear, honest communication supported by documentation helps minimize misunderstandings and legal exposure.
3. MISHANDLING DISABILITY ACCOMMODATION REQUESTS
Accommodation requests should never be ignored or treated as an inconvenience. Employers have a legal obligation to engage in the interactive process and explore reasonable accommodations whenever appropriate.
4. CONDUCTING WEAK WORKPLACE INVESTIGATIONS
Whether the issue involves harassment, discrimination, retaliation, workplace violence, or employee misconduct, investigations must be prompt, thorough, impartial, and well documented.
5. FAILING TO TRAIN MANAGERS
Managers make employment decisions every day but many have never been properly trained on employment laws or effective people management.
Without training, supervisors can unintentionally expose the organization to significant legal and financial risk.
6. WAGE AND HOUR COMPLIANCE ERRORS
Misclassifying employees, improperly calculating overtime, inaccurate meal and rest break practices, payroll errors, and poor timekeeping continue to be among the most expensive compliance mistakes employers make.
Regular payroll and wage-and-hour audits can identify issues before attorneys do.
7. INCONSISTENT POLICY ENFORCEMENT
Policies only protect an organization when they are enforced consistently. If one employee is disciplined while another receives no consequence for the same behavior, employers invite claims of unfair treatment or discrimination.
8. MISCLASSIFYING INDEPENDENT CONTRACTORS
Treating someone as an independent contractor while directing and controlling their work like an employee can result in significant liability for wages, taxes, penalties, and benefits.
9. FAILING TO CONSIDER LEAVE AND ACCOMMODATION OPTIONS
Too often employers assume that once protected leave ends, termination is the next step.
In many situations, additional leave or another reasonable accommodation may still be required under disability laws.
10. ALLOWING A TOXIC WORKPLACE CULTURE
Bullying, incivility, favoritism, and poor communication may not always violate the law, but they often create the environment where legal claims begin.
PREVENTION IS ALWAYS LESS EXPENSIVE THAN LITIGATION
The strongest legal defense isn’t built after a claim is filed, it’s built long before a problem arises.
Employers can significantly reduce risk by:
- Documenting performance issues consistently.
- Training managers to make legally compliant employment decisions.
- Conducting prompt, thorough workplace investigations.
- Maintaining accurate job descriptions and accommodation processes.
- Performing regular wage-and-hour and payroll audits.
- Reviewing employee classifications.
- Keeping handbooks current and enforcing policies consistently.
- Creating a workplace culture built on respect, accountability, and communication.
HOW JORGENSENHR HELPS
At JorgensenHR, we help employers identify HR risks before they become lawsuits.
The best time to fix an HR problem is before it becomes a legal problem. If you’re unsure where your organization stands, JorgensenHR is here to help.
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