1. Work Authorization Documentation

Federal law requires employers to complete and maintain Form I-9 for every employee to verify identity and authorization to work in the United States. Failure to comply may result in civil penalties ranging from $281 to $2,789 for paperwork violations and $698 to $5,579 for knowingly employing unauthorized workers.

2. Employee & Contractor Classification

Misclassifying employees or independent contractors can result in fines of $1,000+ per violation, plus liability for back wages, payroll taxes, workers' compensation, employee benefits, penalties, and interest. Employees must be classified according to the Fair Labor Standards Act (FLSA) based on their job duties.

ADDITIONAL 

• Back pay: Unpaid overtime pay that the misclassified employee would have earned
• Payroll taxes: Back taxes, including Social Security and Medicare contributions, plus IRS penalties and interest for unpaid payroll taxes for each misclassified employee
• Workers’ compensation insurance: Medical expenses and lost wages for misclassified workers who experienced an injury and were denied workers’ compensation coverage
• Employee benefits: Costs for health insurance, retirement benefits, and paid leave that misclassified employees would have been eligible to receive 

3. Equal Pay & Payroll Accuracy

Federal law requires equitable pay practices and accurate payroll processing. Equal Pay violations may result in penalties of up to $1,100 per violation, in addition to fines and possible jail time.  

 Other payroll non-compliance issues can result in fines and possible jail time - we can ensure accurate payroll processing and compliance with all relevant laws.

4. Family and Medical Leave Act (FMLA) and State Leave Laws

FMLA - non-compliance fines start at $211 per violation; additional charges may be assessed for fees, penalties, and back pay.  

5. Workplace Discrimination

Penalties for EEOC violations, can range from $50,000 to $300,000