Remodeling: The beginning of the end started when an employee who’d been let go filed for unemployment, recalls Kellie Boysen. In the process of determining whether that employee was eligible, the state discovered he’d been improperly paid as an independent contractor. Suddenly, the company owed three years back pay in overtime along with unemployment and Social Security taxes. Heavy fines ensued, and workers compensation rates shot up dramatically. The firm was left with thousands in attorney fees. In the end, that one mistake cost several hundreds of thousands of dollars—and put the business under.
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Most people do not understand the importance of having an employee handbook. It is a crucial piece of documentation that spells out everything an employee needs to know about working for a company. It will also protect the company legally in many cases involving workplace rules, hire/fire and compensation. As a businessperson, you have to understand how important it is to protect yourself. This article gives a perfect example of what can happen when you do not properly protect your business with a piece of documentation like this. Things can get out of hand really easily and you can find yourself in the middle of a lawsuit that could possibly put you out of business. Like the article say, if you do not know how to put something like this together or do not feel comfortable dealing with the legal end of a project like this, it is always a good idea to get some professional assistance to guide you through the project.
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