Answer to Question 1
Answer: The smaller firm is probably not adequately addressing potential workplace litigation. Most small business owners are well aware of the threat of employment related litigation. However, their size and lack of HR expertise makes it unlikely that they'll address the problem. For example, most don't provide adequate (or any) employment discrimination or sexual harassment training. The small business owner may not be fully complying with compensation regulations and laws, such as paying compensatory time for overtime hours worked, and distinguishing between employees and independent contractors. Violations have serious consequences. Many government tools are available to small businesses. The U.S. Department of Labor's FirstStep Employment Law Advisor helps small employers determine which laws apply to their business. The U.S. Equal Employment Opportunity Commission (EEOC) administers Title VII of the Civil Rights Act of 1964 (Title VII), the Age Discrimination in Employment Act of 1967 (ADEA), Title I of the Americans with Disabilities Act of 1990 (ADA), and the Equal Pay Act of 1963 (EPA). Its Web site contains important information and practical advice regarding EEOC matters. The DOL's Occupational Safety and Health Administration site similarly supplies guidance for small business owners. This contains practical information for small business owners, including industry-specific safety and accident checklists.
Answer to Question 2
Answer: TRUE
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