Labor and employment risks can derail business goals and productivity if risks are not managed early and effectively. The latest episode in our Inside Counsel Insights series focused on practical business tools to mitigate labor and employment legal and business risks, helping business teams and in-house counsel navigate real, timely issues with guidance to address employment issues and also help drive business goals.
Key topics covered include:
- Common employment issues: Wage and hour issues (including exempt vs. non-exempt classification), independent contractor classification, multi-state compliance, workplace safety, onboarding best practices, and separation and termination risks.
- Risks of noncompliance: Government investigations and fines, employee litigation, morale and productivity impacts, and labor and employment issues that surface in M&A diligence.
- Communication and coordination as risk mitigation: Clear channels for employee questions and concerns, leadership communication that supports engagement, and cross-functional alignment among HR, legal, operations, and finance.
- Onboarding as a compliance tool: Using the offer stage as an opportunity to internally discuss classification rules and multi-state compliance requirements, as well as an opportunity to set clear expectations with new employees.
- Importance of performance reviews and performance management: Instituting a robust annual review process, addressing performance issues in real time, using documentation and improvement plans when needed, and treating reviews as a listening opportunity.
- Worksite and hazard awareness: Conducting worksite assessments to identify hazards, plan for safety needs and state-specific requirements.
- Best practices for policies, handbooks, and implementation: Avoiding generic or inconsistent policies and handbooks, keeping policies organized and usable, and updating them regularly.
- Focus on manager training: Understanding the role that all levels of management play in each business and equipping lower and mid-level managers to spot and address issues.
- Consider insurance alignment: Ensuring insurance coverage grows with the business and matches the company’s needs, risk profile, and use of employees and independent contractors.
The throughline is simple: treat labor and employment risk management as an ongoing business process, not a one-time fix. When businesses build clear communication channels, make deliberate decisions during hiring and throughout employment, manage performance consistently, and keep policies, training, and insurance aligned with how the business is operating, they reduce risk and invest in their business goals and productivity through their people.