Monday, May 3, 2010

“We are a small company, we don’t need HR help.”

One often hears small business owners say, “Well, we have a small tight nit group of employees. My accounting person can handle all the HR issues that can come up.” Despite the continuing assault on Employer rights and the tidal wave of employee friendly laws and judicial decisions, small business owners continue to believe that they are immune from expensive litigation and employee unrest.

One does not have to be a large employer to need professional and experience HR guidance. Take the example of a small construction company in St. Louis, Missouri. A&A Contracting was recently targeted by the EEOC and sued by that agency for discriminating against one of the Contractor’s permanent full time employees. Apparently, this employee had a history of liver and kidney problems. The employee’s health problems also included cancer. The employee’s doctor has cleared the employee to go back to full employment with no restrictions.

The Contractor found out about the employee’s health condition when the employee applied for company health insurance. After the company found out about the employee’s conditions, it terminated the employee. As a result, the company settled the lawsuit for $17,000 in lost wages and compensatory damages.

The lesson here is well stated by James R. Neely, District Director of the EEOC’s St. Louis District Office. Mr. Neely said, “Even small employers need to keep themselves educated and informed of the law’s requirements. At the time the employee was fired, A&A Contracting had approximately 20-25 employees. Any business with that size work force needs to make sure that they have clear, effective anti-discrimination policies and that they provide thorough, comprehensive anti-discrimination training to its managers and employees on a regular basis.”

The EEOC also strongly suggested that the employer needed to engage a HR professional with whom it could consult and have participate in HR related matters.

It is often the experience that prevention of employment related lawsuits is much less costly than settling a lawsuit or even worse, being hit with a judgment and attorney’s fees.

As a small business can you afford not to seek and engage competent and professional HR assistance?

G & J Consultants is a Kansas City based HR consulting firm specializing in assisting small and medium sized businesses in managing HR and employment law issues. The firm is staffed with experienced certified HR professionals and employment/labor attorneys to provide full service HR solutions.