Business Law: How to Hire Employees Safely

By Nina L. Kaufman, Esq

For many business owners, the thought of hiring employees is scarier than the latest Halloween horror flick. And yet — think of the alternative (the boon to your business!). Can your company afford to stay where it is?

Chances are, you recognize it can't . . . which is why you're connected to the E-Myth. Hiring employees can create a paradigm shift for your company, if done carefully and with advance planning. Here are a handful of areas that you'll want to address in your hiring process:

• Job descriptions. Like Goldilocks and the Three Bears, your job description needs to tread a fine line. You want them narrow enough so that not "just anyone" can apply. For many positions, you need a certain level of talent and expertise. However, they need to be flexible enough so that you don't pigeon-hole your workforce too tightly. A clear job description can also help you steer clear of various discrimination laws. If a position requires heavy physical work, or absolutely requires an employee's office presence on the Sabbath (for example, in the wedding planning business), you can avoid claims that you discriminated in hiring under the American with Disabilities Act or other discrimination statutes.

• Interview manners. Interviewing employees is part science and part art - all of which can be learned, but virtually little of which comes naturally. For example, interviewing a noticeably pregnant woman and asking her due date/how many children she hopes to have might arise out of innate curiosity, but is a minefield for a sex discrimination claim. "How old are you?" and "Are you married?' can also get you into hot water. It helps to have coaching through this process, or hiring a firm to handle it for you. In addition, employers get into trouble when they talk too much. It's tough. We like to talk about ourselves — it's human nature. The point of the interview is for the employee to sell you on him/her — not for you to sell the employee on the company.

• Background checks. What do you really know about the candidate sitting in the chair across the table from you? In many situations, only what she tells you. As a business owner, that's not enough. "Trust, but verify," as Ronald Reagan was quoted as saying. You want to check all references. Background checks are crucial. For example, you'll definitely want to do a credit check if you're a financial services firm; a criminal convictions check if you're in the security business. Make sure you're up front with the candidates that these checks are required as a matter of course. Also, all employees need to fill out Form I-9 — required by the Department of Homeland Security. Do not hire undocumented workers.

• Employee handbooks. Small companies may want to provide a "kinder, gentler" culture, with abundant vacation and personal days, but that can really cost you in the long run. Even costlier is being generous with Employee #1, recognizing the costs, and then being less generous with Employee #2. Especially if Employee #1 is a 20-something white male and Employee #2 is a 43-year-old African-American female. With an employee handbook, you have an opportunity to determine the policies and procedures that apply objectively to all employees. When you're consistent, you can deflect many claims of unfair treatment.

Employees can be a skyrocket — or a torpedo — for your business. Before you step into this thorny area, engage good employment attorneys to help you navigate it safely. They can guide you on the right way to hire that both streamlines the process and ensures you comply with federal and state law.

Want more information on employee behavior guidelines?
Visit GreatBusinessLawResources.com/employeesbehavingbadly.htm to get your free copy of our special report, Top 10 Reasons Employees Get Fired.

© 2004-2010 The Legal Edge LLC. Nina L. Kaufman, Esq. is an award-winning business attorney, author, and speaker. Under her Ask The Business Lawyer umbrella, Nina offers easy-to-understand business law resources that protect small businesses and save them money. To learn more, and receive our FREE "LexAppeal" ezine, visit http://www.GreatBusinessLawTips.com  or contact Contact Us. This article is for your general information only. Be sure to consult with an attorney regarding your particular situation to make sure you get the specific advice you need.

Nina Kaufman, Esq. Award Winning Business Lawyer, Author & Speaker