Let’s get real for a moment.
Running a business is no small thing. You’re juggling clients, contracts, staffing, sales goals, and everything in between. But one of the fastest ways for it all to come crashing down? A single HR misstep.
Now, I know what you might be thinking — “We’ve got policies. We’ve got a handbook. We’re good, right?”
Well… maybe. But after working in HR for nearly two decades and helping businesses avoid six-figure lawsuits (yes, plural), I can tell you that the most damaging mistakes are usually the ones you don’t even realize you’re making.
And just like that — boom — you’re in the headlines. And not the good kind.
But don’t worry. This isn’t about panic — it’s about prevention.
Let’s walk through 7 HR mistakes that could get you sued this year — and more importantly, how to stay far, far away from them.
Mistake #1: Failing to Investigate Complaints Promptly
When an employee reports harassment, discrimination, or a toxic workplace issue, timing is everything. Ignoring it or putting it off — even unintentionally — can escalate things fast.
Fix it:
Have a clear process for intake, documentation, and follow-up. Act quickly, even if you think the issue is minor. Document every step.
Mistake #2: Misclassifying Employees
It’s one of the most common — and most expensive — mistakes. Mixing up exempt vs. non-exempt employees, or misclassifying contractors, can trigger wage claims and DOL audits.
Fix it:
Review job duties, not just job titles. Use FLSA guidelines. When in doubt, audit your classifications (and yes, I can help with that).
Mistake #3: Not Documenting Performance or Behavior Issues
This one is close to my heart because I say it in almost every training:
Document. Document. Document.
If it’s not in writing, it didn’t happen — at least not in the eyes of a judge or the EEOC.
Fix it:
Train managers to document even informal conversations. Use PIPs, incident logs, and consistent forms. Keep it simple, but keep it solid.
Mistake #4: Inconsistent Policy Enforcement
You let one employee slide but write up another for the same thing. Suddenly, you’ve got a discrimination claim — and a mess to clean up.
Fix it:
Make fairness a system, not a feeling. Enforce policies consistently. If exceptions are made, document the why.
Mistake #5: Ignoring Accommodation Requests
This one gets tricky. An employee may casually mention a medical issue or say, “I’m having a hard time with this schedule.” That’s often a request for accommodation — and ignoring it could violate the ADA.
Fix it:
Train your supervisors to recognize what sounds like an accommodation request. Respond promptly. Engage in the interactive process. Don’t ghost your own employees.
Mistake #6: Using AI Hiring Tools Without Oversight
Yes, we love automation — but AI in hiring can bring hidden bias. Regulators are watching this closely, and lawsuits have already started.
Fix it:
If you’re using AI, make sure it’s validated for fairness. Review for disparate impact. Be transparent in your hiring processes.
Mistake #7: Retaliation After a Complaint
This is the big one. An employee makes a complaint — and suddenly, they’re treated differently. Hours cut. Promotions passed up. Excluded from meetings. That’s retaliation.
And guess what? Even if the original complaint had no merit, retaliation alone can lead to a successful lawsuit.
Fix it:
Educate your leaders. Monitor post-complaint behavior. Make sure employees feel safe coming forward.
✋ Final Thought: Don’t Wait for the Knock at the Door
None of these mistakes are made intentionally. But they do happen — to good companies, with good people, who simply didn’t know better.
So if you’re reading this and thinking, “Yikes, we might need to tighten up a few things…” — you’re already ahead of the game.
✅ Review your processes
✅ Train your managers
✅ And when in doubt, get a second set of eyes
Need help spotting your blind spots?
I’ve seen what happens when HR goes wrong — and I’ve helped countless businesses fix it before it costs them their reputation (and their budget).
Let’s do a quick 10-minute HR Risk Review — no pressure, just prevention.
[Book a Free Consult]
Because protecting your business doesn’t start in court.
It starts right here.
#HRCompliance #CostlyHRMistakes #VanessaGNelson #ExpertHumanResources #HRLeadership #SmallBusinessSupport #HRStrategy #WorkplaceLaw
