CFOs who oversee human resources at their organizations should pay attention to employment law issues, according to CFO.com.
Below are three employment law issues CFOs should pay special attention to, according to the article.
1. One-size-fits-all separation agreements. It's common for companies to use separation agreements that give an employee severance pay in exchange for a release of legal claims. It's important to tailor separation agreements to each employee, as using a form or template agreement may result in the company paying severance but not getting a release of legal claims that is enforceable, according to the article.
2. Lack of familiarity with wage and hour laws. It's important for CFOs to know the compensation laws in every state and city the company has an office or an employee in. These laws are a leading source of employee lawsuits, according to the article.
3. Misclassifying workers. It's vital for CFOs to properly classify workers, as it is common for workers to bring claims alleging they were misclassified as an independent contractor when they should have been treated as an employee. According to the article, misclassification can result in liability for failure to provide overtime pay, employee benefits, unemployment insurance payments, workers compensation insurance premiums and more.
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