In the industry of human resources, it’s not always the big, headline-making mistakes at big companies that get businesses in trouble. Often, it’s the routine HR tasks that end up slipping through the cracks. They ultimately lead to costly violations and legal headaches.
For small and mid-sized businesses, especially in industries such as pest control, roofing, and commercial linens, it’s critical to understand what HR issues to avoid and how to build policies that protect your business.
Read on for more information about the most common HR violations and how you can avoid them before they snowball into big problems that are much more difficult to navigate.
The Cost of HR Noncompliance
Before diving into the most common HR violations, it’s important to understand what is at stake when your business is operating under noncompliance. Failing to follow HR best practices may result in:
- Fines from the Department of Labor (DOL), EEOC, or OSHA
- Employee lawsuits or settlements
- Higher insurance premiums
- Lost contracts or failed audits (especially if you serve government clients)
- Reputational damage that affects hiring and retention
And many of these issues come down to avoidable mistakes.
Most Common HR Violations (Across All Industries)
Whether you have five employees or 500, here are some of the most frequently cited HR missteps:
1. Misclassifying Employees
Intermingling W-2 employees with independent contractors with no clear lines separating their operational duties is a major compliance issue. If your employee is doing the work of a regular scheduled team member and you’re issuing them a 1099, you may face back wages, taxes, and penalties.
2. Incomplete or Outdated Employee Handbooks
Way too often, businesses will rely on old handbooks or don’t have one at all. Without clear policies, you have no fallback when disputes pop up. Worse, an outdated policy may contradict current labor laws.
3. Poor Documentation of Disciplinary Actions
If you terminate someone but can’t provide written warnings or a history of performance issues, your business is vulnerable. Documentation is necessary to create a defensible record.
4. Failure to Track Hours Properly
This one may hit hard for companies that employ field employees. If you’re not tracking time accurately for hourly or remote staff, you may be underpaying wages or overtime.
5. Missing or Incomplete New Hire Paperwork
From I-9 forms to signed acknowledgments of company policies, every new hire needs a paper trail. Missing documentation can trigger penalties in an audit or weaken your case if a dispute arises later.
Industry-Specific HR Violations: Pest Control, Roofing, and Linen Companies
Certain industries face their own unique challenges when it comes to HR compliance. Here are some of the most common HR violations we see in pest control, roofing, and linen service businesses:
Pest Control
- Incomplete driver qualification files for technicians using company vehicles
- Failing to train on chemical safety and OSHA requirements
- Unclear commission structures for sales or service staff, leading to wage disputes
- Improper classification of seasonal or part-time workers
Roofing Companies
- Not paying overtime to field supervisors misclassified as exempt
- Lack of formal job descriptions making it harder to defend hiring or firing decisions
- Failing to document safety training and equipment protocols
- No policy for inclement weather or job delays, which leads to disputes over pay
Linen Services
- Inconsistent tracking of break and meal periods in fast-paced shifts
- High turnover with little onboarding, leading to confusion and morale issues
- Improper deductions for lost or damaged uniforms or tools
- Failure to post required labor law notices in visible areas of the facility
Each of these violations can lead to serious financial and legal trouble and many stem from not having the right policies or documentation in place.
How to Avoid These HR Violations
The best way to stay in the clear? Be proactive, not reactive. Here are steps you can take:
1. Conduct an HR Audit
An HR audit reviews your documentation, policies, pay practices, and employee files to identify risks before they turn into violations. It’s one of the smartest investments a small business can make.
2. Keep Your Handbook Updated
Your employee handbook should reflect the latest labor laws, industry regulations, and your own internal practices. Update it annually or when any major change occurs.
3. Train Your Supervisors
Managers are often the first line of defense (or the source of an issue). Train them to recognize protected areas, properly document issues, and understand wage and hour laws.
4. Centralize Recordkeeping
Whether you’re using paper files or digital systems, make sure all employee records, applications, offer letters, performance notes, and terminations are stored securely and consistently.
5. Ask for Help When You Need It
When in doubt, bring in an HR consultant. Whether it’s developing a commission structure, navigating a tricky termination, or preparing for an audit, expert guidance can save you time, money, and stress.
Let’s Strengthen Your HR Foundation
At Seay HR, we specialize in helping businesses stay compliant and confident in their HR practices. We know the rules, the risks, and the right systems to put in place.
Contact us today to schedule a compliance review or discuss customized HR support for your business.
