Professionals

3 Litigation Concerns for Human Resource Professionals

Working as a human resource professional exposes you to a significant number of risks, making professional liability a must-have. Though the financial impact of a lawsuit or claim brought by a former or current employee can be devastating, carrying an HR insurance policy can defray the costs away from you as an individual.

Common Liabilities

While you try to do your best to help employees, hire the right people, and administer benefit plans, you may make a few mistakes. These errors can lead to lawsuits. The following are some of the most common liabilities facing HR professionals.

  1. Errors on employment paperwork: While it is the responsibility of new hires to fill out their paperwork, HR staff are to keep individuals accountable for completing the paperwork in its entirety and turning it in on time. Forms must be kept on file for a minimum of three years.
  2. Hour and wage disputes: Remote employment has made it difficult for employers to ensure compliance with wage and hour laws. Establish clear parameters for schedules and wages, including overtime compensation.
  3. Worker classification errors: There are different benefits and protections afforded to different classifications of workers. Failing to classify the employees can lead to lawsuits over unemployment insurance, disability insurance, workers’ comp, or health insurance.

These are just three of the common litigation problems you may run into as an HR professional. Protect yourself with professional liability insurance.