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Top Hiring Mistakes Companies Make

If your business is hiring staff members, you may wish to talk with King of Prussia business law lawyers about your obligations as an employer. Whether you are bringing on your first employees or simply expanding your existing workforce, there are myriad legal requirements that you must comply with under Pennsylvania law. A failure to follow the rules can have serious consequences for your company, so you should get proper legal advice to avoid making costly and damaging errors. 

Curley & Rothman, LLC helps startups, small businesses, mid-size companies, and large established organizations. Our King of Prussia business law lawyers know Pennsylvania rules and best practices for hiring and we can provide you with invaluable assistance throughout the hiring process so you can avoid common errors which companies make. To learn more, give us a call today.

Common Hiring Mistakes Companies Make

When you hire employees, you take on a host of legal obligations. You need to make sure you comply with all of the requirements imposed on employers so you do not face legal consequences. You also need to make sure your employees do not jeopardize your business interests. Some of the common hiring mistakes companies make include:

  • Failing to verify eligibility to work. You need to make sure an employee is a citizen, permanent resident, or has a work visa and permission to work in the United States. You must have an employee complete Form I-9, employment eligibility verification. You also have to examine documents, like a passport or visa, to ensure the employee is telling the truth about work authorization.
  • Failing to comply with tax obligations. The Small Business Administration indicates you must have new employees complete a W-4 form, which is a withholding exemption certificate. You have to submit the W-4 form to the IRS. You also have to withhold the correct amount of payroll taxes from an employer, pay payroll taxes to the IRS, and submit an annual wage and tax statement.
  • Failing to purchase workers' compensation insurance and unemployment insurance. You must buy required insurance coverages for employees.
  • Incorrectly classifying a worker. If someone is an employee and you classify that employee incorrectly as an independent contractor, this can have serious financial consequences for your company.
  • Failing to post required workplace notices. You are required to have certain posters in your workplace in order to inform your employees of their rights under the law.
  • Not getting workers to sign a non-compete or non-disclosure agreement. You must make sure your employees agree not to go to work for competitors or not to share your trade secrets with the public or other organizations.
  • Not understanding wage and hour rules. You need to know when employees are exempt from overtime, and under what conditions overtime has to be paid to workers.
  • Failing to understand all of the anti-discrimination rules. You need to know what constitutes unlawful discrimination and make sure you do not inadvertently engage in behavior which could be a violation of any anti-discrimination legislation.

These are just a few of many common mistakes employers make. You don't want to make any of these errors, as you could end up costing your company money and making your organization vulnerable to a lawsuit or to regulatory action.

Avoiding Mistakes During Hiring

When you are hiring a new employee, you need to review all federal and state rules that govern the employer/ employee relationship. You also must make certain that you take steps to protect your company by defining the employment relationship and defining your employee's obligations.

The best way to protect your business and avoid problems is to get proper legal help before, during, and after the hiring process. Your lawyer can help you to make smart choices when you bring on employees so those workers are an asset to your business and not a detriment.

Getting Help from King of Prussia Business Law Lawyers

Bringing on new talent for your organization should be a positive development, and it can be if you avoid common errors and make smart choices during the hiring and on-boarding process. Curley & Rothman, LLC can help.

You can download our Free guide to Wages, Overtime and Severance in Pennsylvania to find out some basic and important information about obligations which employers have to workers. You can also give us a call at 610-834-8819 or contact us online today to get personalized help in making sure your hiring process goes smoothly.