CPEhr Releases Article Providing Small Employers Five Strategies to Avoid Employment Litigation

CPEhr released an article entitled “Five Ways To Protect Your Company Against Employment Litigation” which reviews the importance of maintaining accurate and up-to-date personnel files as a method of protecting against employee lawsuits.

Los Angeles, CA, April 18, 2009 --(PR.com)-- CPEhr, a Los-Angeles Human Resources Outsourcing firm recently released an article entitled, “Six Ways To Protect Your Company Against Employment Litigation - Accurate and up-to-date personnel files provide protection when faced with litigation.” The article is an important educational tool that assists small business owners in creating and maintaining personnel files to keep track of employee performance while also creating a “paper trail” for managers to use when addressing employment related claims.

Uncertain economic times can influence employees to seek ways to get extra money from their employer by making false claims, so maintaining consistent personnel files serves as a safeguard in having to address such claims.

The cost of settling charges related to employee lawsuits is astronomical. According to The Society for Human Resource Management the cost of settling Equal Employment Opportunity Charges (EEOC) has increased almost 79 percent since the early 1990s. In addition, the median jury verdict in employee litigation as of February 2006 was $250,000.

The article highlights five tips for employers to avoid litigation:

Tip #1: Establish Policies and Procedures- A policy that addresses the management of personnel files is the first step to ensuring integrity to the overall process for both management and employees to follow. A clear written policy must be detailed in your company’s employee handbook.

Tip #2: Comply with Applicable State and Federal Laws- There are many employee documents that are required and must be retained for various lengths of time, including employee health records, benefits data and affirmative action documents. Many of these employee documents are required to satisfy such laws as Title VII of the Civil Rights Act, Fair Employment and Housing Act, Americans with Disabilities Act and The Fair Labor Standards Act.

Tip #3: Ensure Privacy-Employee personnel files should be housed in a locked file cabinet with access limited to the human resources manager.

Tip #4: Create Employee Files- A simple uniform process in creating employee files will go a long way in maintaining organization. Each employee file should contain employee personnel information.

Tip #5 Audit Your Employee Files- Annual audits will assist in maintaining consistent information across the organization. Also, The audit process serves as the first indicator of any discrepancies or missing information that can be immediately resolved.

For more information, go to www.cpehr.com/hr-articles to download your free copy of “Five Ways To Protect Your Company Against Employment Litigation.”

About CPEhr:
Founded in 1982, CPEhr provides Human Resources Outsourcing services to over 15,000 worksite employees through a high-touch service and customized models. With corporate headquarters in Los Angeles, CPEhr is one of the largest, privately held Human Resources Outsourcing and PEO firms in the state. With almost 30 years experience, CPEhr has an advantage in its knowledge of statewide employment challenges, yet extends its personalized services nationwide.

CPE HR, Inc.
Monique Stennis