Running a small business can be a rewarding endeavor, but also comes with a host of responsibilities that include managing human resources and navigating employment laws.

While corporations often have dedicated HR departments to handle these matters, small businesses might not have the resources to support such a structure. That makes understanding the basics of HR and employment law crucial for complying with laws and regulations, avoiding legal pitfalls and creating a positive work environment. Here are 10 considerations:

Hiring and onboarding: Small businesses should start on the right foot by following proper hiring and onboarding procedures. This includes creating clear job descriptions; conducting fair interviews; and providing new hires with information about company policies, expectations and benefits. A well-structured onboarding process sets the tone for a positive work experience and fosters employee engagement.

Classification of employees: Understanding the classification of employees is vital for complying with employment laws. Employees are typically classified as either full-time or part-time and, in some cases, as exempt or non-exempt from overtime pay regulations. Misclassifying employees can result in legal consequences.

Wage and hour laws: Small businesses must follow federal and state wage and hour laws, including minimum wage requirements and overtime pay. Keeping accurate records of employee hours worked and wages paid is crucial for demonstrating compliance and avoiding potential disputes.

Anti-Discrimination and anti-harassment: Small businesses must create workplaces free from discrimination and harassment. Familiarize yourself with federal and state laws that prohibit discrimination based on such factors such as age, gender, race and religion as well as disability. Implement clear anti-discrimination and anti-harassment policies and provide training to employees to ensure a respectful and inclusive workplace.

Family and Medical Leave Act (FMLA): Even small businesses are subject to the provisions of the Family and Medical Leave Act, which allows eligible employees to take unpaid leave for certain family and medical reasons. Understand the requirements of FMLA and ensure you provide the necessary documentation and support to employees who qualify for leave.

Safety and health regulations: Maintaining a safe and healthy work environment constitutes a legal obligation for all businesses regardless of size. Familiarize yourself with Occupational Safety and Health Administration (OSHA) regulations and implement necessary safety protocols. This not only protects your employees, but also reduces the risk of potential legal actions.

Employee records and documentation: Even without a dedicated HR department, small businesses must maintain accurate and organized employee records. This includes contracts, performance reviews, disciplinary actions and any other relevant documentation. Proper recordkeeping demonstrates consistent treatment of employees and can be crucial in case of legal disputes.

Termination procedures: Terminating employees is never an easy task, but following proper procedures remains crucial to avoid legal issues. Document performance issues, offer clear feedback and provide opportunities for improvement before considering termination. Ensure termination decisions are based on objective criteria and avoid discrimination.

Employee benefits and policies: Small businesses may offer such benefits as health insurance, retirement plans and paid time off. Clearly communicate these benefits to employees to avoid misunderstandings. If you’re unsure about benefit regulations, consider consulting legal or HR professionals for guidance.

Consulting professionals: While small businesses might not have full-fledged HR departments, it’s wise to seek professional guidance when dealing with complex employment law matters. HR consultants and legal experts can provide valuable insights and ensure your business remains compliant.

Even if a small business lacks a dedicated HR department, understanding the fundamentals of HR and employment law remains crucial. By following proper hiring practices, complying with employment laws and creating a positive work environment, small business owners can establish a strong foundation for success.