Steps to Limit Employment Liability Risk

Establish clear workplace policies - Develop an employee handbook and distribute it! Sample employee handbooks and HR forms libraries are easily accessible and most law-firms or insurers will happily provide content. For your protection, be sure your handbook includes an employment-at-will statement and an equal employment opportunity statement. Create written workplace policies on employment practices; post them and include in employee handbooks. Establish a policy for employees to report concerns and for management to respond.  Educate management and employees about ethical and workplace practices.  You may wish to include diversity and sensitivity training as part of this education program.

• Develop a code of ethics policy. This policy tells employees that they shouldn't do certain things, like giving kickbacks and engaging in other ethical violations.
• Include an anti-retaliation provision. In light of the new rise in claims of retaliation, include a statement saying that it's the policy of the business not to retaliate against employees over accusations of discrimination or harassment.
• Institute handbook auditing procedures. Having an audit procedure in place under which the handbook is periodically updated to keep up with changes in the law is important.
• Make workplace policies accessible. Post company policies in the workplace reinforcing your stance regarding unacceptable – and illegal – workplace behavior.

Hire carefully—Screen employees thoroughly, avoiding any discriminatory practices.

Provide job descriptions - Create a detailed job description for each role. Each job description should clearly define the required skills and performance expectations.

Institute a zero-tolerance policy – This should be established for substance abuse, harassment and any form of discrimination. Additionally, have an "open door" policy in which employees can report infractions without fear of retribution.  It is advisable to have a couple of people that issues can be reported to instead of just one.

Keep thorough records - Document all employee complaints or investigations, as well as what your company did to resolve those issues.

Perform regular employee reviews—Review employee performance and keep a written record of reviews.