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Small Business Headaches

Small business owners across the country are facing a dysfunctional and unpredictable economy along with a variety of new and often contradictory set of regulations.  The unknown state of our economic recovery along with the variety of new regulations has created an atmosphere of confusion and uncertainty for the small business owner.  This business atmosphere has most certainly played a role in hindering our economic recovery, especially when you consider since 2002 companies with under 500 employees have added 6 million jobs and those over 500 employees have reduced workforce by over 1 million....proof positive that small and mid-sized companies are a key factor to economic growth.

 

One can look at the significant increase in employment related litigation regarding wage and hour issues and unlawful employment practices to clearly understand that the severe economic downturn has caused a jump in allegations.  The jump in allegations is equally matched by our government’s attempt to increase revenue by strictly enforcing existing regulations including: unpaid overtime, denied meal & rest breaks, employee misclassifications, unpaid termination wages and vacation benefits.

 

Many of these cases get settled for substantial amounts even though they may very well be without merit.  Many find it easier and more cost effective to settle a case rather than expend the resources necessary to mount a strong defense.  Therefore we get bad settlements that embolden governmental agencies and private litigants to take more aggressive action, which then perpetuates this increase in litigation.  

For over two decades, Total Team Solutions has been helping small businesses with payroll, cost effective employee benefits and in assisting our clients to identify/correct any compliance issues that may result in litigation.  

 

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