Law Office of David Miklas, P.A.

Labor & Employment law - Employers only

Running a business in Florida is no small feat. Between managing customers, finances, and operations, employment law often takes a back seat. Most small business owners don’t deliberately break employment laws. They’re simply too busy to keep up with the constant changes in regulations. Unfortunately, these oversights can lead to costly lawsuits, government investigations, and reputational damage.

I want to help business owners understand the most common mistakes they make when it comes to employment law and why these errors happen. More importantly, it should be clear that it can be very important to partnering with an experienced Florida employment law attorney to navigate these challenges efficiently.

1. Misclassifying Employees as Independent Contractors

Many business owners try to save money by classifying workers as 1099 workers or freelancers or independent contractors rather than employees. While independent contractors do not require payroll taxes, workers’ compensation, or benefits, misclassifying them can be a costly mistake.  It has been my experience that many workers who receive a Form 1099 from a business are misclassified.

Why This Happens:

Small business owners often don’t have time to research the complex rules distinguishing employees from contractors. The IRS has rules and the Department of Labor has its rules.  Business owners might assume that because a worker prefers a flexible schedule or works offsite, they qualify as an independent contractor.

The Solution:

Given the scrutiny from the U.S. Department of Labor (DOL) and the IRS, it’s critical to consult an employment attorney to assess worker classifications. A relatively quick legal review can prevent expensive misclassification penalties.

2. Misunderstanding Overtime and Wage Laws

The Fair Labor Standards Act (FLSA) requires that non-exempt employees receive overtime pay for any hours worked over 40 in a workweek. However, many business owners in Florida mistakenly assume that salaried employees or those paid a high wage are automatically exempt from overtime.  This is not accurate.

Why This Happens:

Small business owners don’t have time to attend employment law seminars or analyze the nuances of wage and hour laws. They may rely on outdated advice or misconceptions about how salaried employees are classified.

The Solution:

Instead of assuming, business owners should schedule regular consultations with an employment attorney to ensure compliance with FLSA exemptions. A lawyer reviewing job duties and salary thresholds can help you prevent costly lawsuits.

3. Firing Employees Without Considering Retaliation or Discrimination Laws

Florida is an at-will employment state, meaning you can fire an employee for almost any reason - except (and this is the most important part) an illegal reason, such as discrimination or retaliation. Business owners often run into trouble when they terminate employees without considering potential claims of retaliation or discrimination.

Why This Happens:

Many small business owners don’t document performance issues because they are focused on running daily operations. When they fire an employee without a paper trail, it can create the appearance of unlawful termination.  Also, terminating an employee (even in an at-will state like Florida) shortly after that employee engages in protected conduct, such as complaining about their pay or making a Workers Compensation claim) can look like retaliation due to the timing.

The Solution:

Before terminating an employee, ask:

- Has this employee recently filed a complaint?
- Could they claim discrimination based on race, sex, age, disability, or another protected characteristic?
- Do I have clear documentation justifying the termination?

If there is any uncertainty, consulting an employment attorney beforehand can help avoid potential legal battles.

4. Not Having an Employee Handbook or Written Policies

Many of Florida’s small business owners believe that only large corporations need formal policies. However, a lack of clear rules and documentation can lead to inconsistent treatment of employees and legal liability.

Why This Happens:

With limited time and resources, business owners may prioritize sales and operations over developing workplace policies. They might also assume that informal verbal policies are sufficient.

The Solution:

A well-drafted employee handbook can prevent confusion and provide legal protection. Working with an employment attorney ensures the handbook is tailored to Florida’s employment laws and best practices.  Investing in a solid employee handbook that is legally compliant and up-to-date is the first legal investment that I recommend a Florida small business make.

5. Ignoring Harassment and Discrimination Complaints

A single harassment or discrimination complaint can lead to an Equal Employment Opportunity Commission (EEOC) investigation and a potential lawsuit. Business owners often make the mistake of dismissing complaints as unimportant or failing to document how they handle them.

Why This Happens:

Small business owners are often overwhelmed with daily tasks and may not have formal HR departments to manage complaints. They might assume that addressing issues informally is enough.

The Solution:

- Take all complaints seriously.
- Investigate promptly and thoroughly.
- Document every step of the investigation.
- Take appropriate corrective action.

Partnering with an employment attorney ensures that complaints are handled correctly, minimizing legal risks.

6. Failing to Keep Proper Employee Records

Employment laws require businesses to maintain specific records, including payroll records, time sheets, and employee personnel files. Failing to do so can cause problems if your business is audited or sued.

Why This Happens:

Recordkeeping isn’t a priority when a business owner is focused on growing their company. Many assume that digital payroll systems automatically keep sufficient records.

The Solution:

Implement a structured recordkeeping system that tracks:

- Employee start dates and job classifications
- Payroll records, including overtime calculations
- Disciplinary actions and performance reviews

Having an attorney periodically review recordkeeping practices ensures compliance with legal requirements.

7. Not Seeking Legal Guidance Until It’s Too Late

Many small business owners only call an attorney when they’re facing a lawsuit or government investigation. By then, options are limited, and the cost of defense is high.

Why This Happens:

Hiring an attorney seems like an unnecessary expense when there are no immediate legal issues. Business owners often assume they can handle employment matters on their own until a problem arises.

The Solution:

Establish a relationship with an employment attorney for proactive legal guidance. Instead of waiting for a crisis, schedule periodic check-ins to address compliance issues before they escalate.

Final Thoughts

Employment law is complex, and small business owners in Florida are often too busy to keep up with changes. Unfortunately, ignorance of the law is not a defense against lawsuits, fines, or audits. The good news is that these risks can be managed effectively with the right legal guidance.

Partnering with an experienced Florida employment law attorney can help business owners stay compliant while focusing on what they do best - running their business. A little prevention now can save significant time, money, and stress in the future.

This is why I have begun to offer businesses the ability to use a subscription plan to protect their business. Subscriptions can provide you with a library of HR and legal documents, webinars, podcasts, articles, and projects during the year tailored to your business.

Florida business owners who have questions about working with an employment lawyer should contact an Employment attorney such as Mr. Miklas by email or calling 1-772-465-5111.

You can read more of our employment law articles on our legal updates page.

Why business owners tend to screw up employment law issues (and how to avoid costly mistakes)