Creating A Pay Scale System For Your Business To Protect Yourself Against Employee Lawsuits
If you are a business owner and have employees, you could end up with lawsuits from them. Employees can sue their employers if they feel their employers are breaking labor laws, and this is something that happens all the time. If you want to avoid these types of lawsuits and have evidence to win cases like this, you will need to follow all labor laws. You can also protect yourself by creating a pay scale and plan for the way you handle paying your employees. Here are several ways you can do this.
Create a job title for each position you have
The first thing you should do is make sure you have a job title and description for each position you have in your company. Along with the job title and description, you should list the requirements for candidates to have this position, as well as the duties of the position. By doing this, you can have clear expectations and requirements for each job position your company offers, and your employees will not be able to argue against this.
Create a pay scale for each job title
Secondly, you should create a pay scale for each job title you have in your business. You may want to have a starting pay scale for each position, and you can tie the pay scales to education or work experience. You will also need to have a scale in place that shows employees when raises will or could take place, and what the pay increases will be.
Create a system to offer pay increases and bonuses
The other important thing you will need to do is create a system for pay increases. This system should help your employees understand when they might qualify for a pay raise or bonus, along with the factors that will affect this. For example, you might want to offer a one-percent raise each year to all employees who satisfactorily pass their annual review. You might also want to offer bonuses to employees who exceed the standard requirements.
In any case, you should make this system as clear as possible. By doing so, you can justify your reasons for giving raises or for skipping raises to the employees who work for your business.
Taking the time to do these things is a great way to protect your business. If you are not sure how to do this or the best techniques to use, contact an employment law firm such as the Law Offices of Terry K. Davis for help.