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Employment


What are the five questions that I should be most careful to avoid asking in an interview?

Employer’s are specifically prohibited from asking certain types of questions to job applicants. Questions that gather information on characteristics on which discrimination is forbidden, such as race, religion, age, physical / mental disability, sex, or sexual orientation should always be avoided.

Do I have to honor religious holidays for every religion?

In general, yes if it can be established that the religion is a legitimate religion and the employer can reasonable accommodate the holiday. The discussion of what is "legitimate" is beyond the scope of this discussion. However, assuming that the religion is mainstream or generally recognized then an employer may not discriminate against an employee because of the employee’s religious beliefs. An employer must accommodate an employee’s religious holiday unless the employer demonstrates that doing so would result in an undue hardship on her business.

Is it OK to run credit and background checks on a prospective employee?

Federal and State law place limits on pre-employment investigations. The general limits placed upon a pre-employment investigation are listed below:

Financial / Credit Investigations

In general, there must be a legitimate business reason to justify running a credit check. For example, if the credit history of the applicant were important to the job requirements, such as where the applicant would be responsible for managing or handling money transactions. Even if a financial / credit check is justified, federal and usually state law, place additional restrictions on the employer. Under the federal Fair Credit Reporting Act, an employer wishing to conduct a credit check must provide written notice to the employee. If the applicant is denied employment based upon the credit check, the employer must notify the applicant in writing and must inform the applicant how he or she can obtain a free copy of their credit report so they can dispute any inaccurate information.

Polygraph Tests

Private employers are usually prohibited from requiring or requesting that employees or applicants take a lie detector test in connection with employment or as part of an employment application. Usually, an employer may use such a test only after advising the employee or applicant of his or her right under the applicable state law.

Character Investigations

The rules governing a character investigation are similar to those governing a credit check. At a minimum, the employer must notify the applicant in writing of the investigation. Further, the employer must describe to the applicant how the investigation will be conducted. If the applicant is denied employment based upon the investigation, the applicant must be given a chance to review the findings.

Criminal Records

Federal law and most states prohibit employers from asking an applicant to disclose information concerning arrests that did not result in a conviction. Investigations seeking prohibited information from third parties are also restricted. For example, pre-employment fingerprints or photographs taken so that they can be given to a law enforcement agency to check for criminal records are prohibited.


Does an employee have a right to see their personnel file?

There is no federal law that requires an employer to allow an employee to review her personnel employment file. However, many states have enacted such a statute. In addition, special rules usually exist for state employees of state agencies and school districts.

Do I have to pay severance pay to laid-off workers?

There is no federal law requiring employers to pay severance pay to discharged employees in the absence of an agreement to do so. Most states follow federal law regarding severance pay. However, employers may wish to provide severance benefits in exchange for a release of any future legal claims against the employer. A valid release will protect the employer from wrongful termination litigation by the employee, including claims for discrimination or public policy violations.

Where can I look to about the best practices in hiring for ethnic and social diversity?

Guidance within this area can be found by contacting you local department of labor, the local SBA or the Equal Employment Opportunity Commission.

Should I tell a rejected candidate why they were not hired?

If the reasons for not hiring resulted from information gathered through a credit or character investigation, you must inform the applicant. If your reasons were based upon something else, you are not legally obligated to state your reasons for not hiring. In general, it is wise not to state specific reasons to the rejected candidate.

What information should I keep in personnel files?

At a minimum, an employee’s personnel file should contain the results of any evaluations and a detailed account of any disciplinary actions taken. If performance or disciplinary problems are not corrected over a period of time, the written evaluations and disciplinary reports serve as documentation to support the employer’s corrective action (termination, layoff, transfer, etc…)

Do I have to carry workers compensation insurance?

In general, yes. Most states require all employers to carry workers compensation insurance. Some states exempt employers who employ a small number of employees. Contact your local department of labor to find out the specific requirements of your state.

If my employees use their automobiles in carrying out their jobs, do I need special insurance or does the employee’s insurance cover me?

The employee’s insurance will not cover you. The employee’s insurance carrier will usually not even cover the employee if the employee is using her automobile for work. Workers compensation laws of most states provides benefits for a work related injury or death of an employee, arising out of and in the course of employment. If your business utilizes drivers, it would be prudent to contact an attorney practicing employment law to determine your liabilities under workers compensation and whether addition insurance is necessary.

What notices am I required to post for my employees to read?

Employers are required by federal and / or state law to display certain informational posters for their employees to read. The following federal posters are commonly required:

  • Federal Minimum Wage
  • Polygraph Protection Act
  • Family and Medical Leave Act
  • Equal Employment Opportunity Act
  • Americans with Disabilities Act
  • State posters usually required are:
  • Health and Safety Regulations
  • Sexual Harassment Policy
  • Workers Compensation
  • State Minimum Wage


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