NASHVILLE, Tenn. — Most employment lawsuits don’t begin with intentional wrongdoing. They typically start with small issues: a denied schedule request, an unclear policy, or a quick decision made without full consideration. Over time, those moments can turn into legal claims that are costly and time-consuming to defend.
During a recent National Federation of Independent Business webinar, employment attorney Tony Dalimonte of Foster Swift Collins & Smith walked small-business owners through employment law risks and compliance priorities for 2026.
His central message was that prevention, consistency and documentation are the best defenses. Small businesses are sued just as often as large organizations, and the impact can be significant.
What seems like a minor workplace decision can be closely examined once a lawyer or government agency is involved. Addressing problems early and maintaining clear policies can help reduce that exposure.
THE IMPORTANCE OF THE EMPLOYEE HANDBOOK
The employee handbook is one of the most important documents a laundry business has, but also one of the most commonly mishandled. Courts and government agencies treat the handbook as the company’s rulebook. If the business states that certain policies exist, it is expected to follow them.
A well-maintained handbook can serve as a strong line of defense. However, if it is outdated, copied from another company or ignored in practice, it can work against the employer. Dalimonte frequently sees handbooks that have not been reviewed in years or that do not reflect how the business actually operates. Managers may not be familiar with the policies, and daily practices may drift away from what is written.
Overtime policies provide a good example. Many handbooks require supervisor approval before overtime is worked. In reality, employees may stay late, come in early or complete tasks outside their regular hours without following the approval process. If a wage claim arises, pointing to a policy that is not consistently followed will not provide protection.
WHY CONSISTENCY AND ACKNOWLEDGEMENT MATTER
If a lawsuit is filed, one of the first items an employee’s attorney will request is the handbook. Any gap between written policies and actual practices can become a point of focus.
Judges and agencies expect employers to follow the processes they promise. If a handbook outlines fairness standards or disciplinary steps, employers must show that they apply them consistently.
Dalimonte also recommends providing a reason when terminating employees, even in at-will employment states. When employees are not told why they were let go, they may assume the decision was based on discrimination or another unlawful factor. Having a written misconduct policy allows employers to point to specific violations and explain decisions clearly.
Even the best handbook offers little protection if employees can claim they never received it. Signed acknowledgments are essential.
Whether the acknowledgment is electronic or on paper does not matter as much as having proof that the employee received the handbook. Those signatures can later help demonstrate that workers were aware of company policies. Without that documentation, employers may have difficulty relying on their own rules in a dispute.
Check back Thursday as we examine wage and hour claims, employee classification, and the EEOC’s focus
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
