Is Your Small Business HR-Ready? 5 Common Compliance Mistakes and How to Avoid Them

Running a small business means wearing every hat — and HR is often the one that gets pushed to the bottom of the list. Between hiring, payroll, compliance, and employee questions, it’s easy to miss critical details that can create unnecessary risk or cost your business money.

At Build Your Roots HR, we’ve helped small businesses across Wisconsin and Minnesota uncover hidden compliance gaps and build stronger HR foundations. Here are the five most common mistakes we see — and what you can do to avoid them.

1. Missing or Outdated Employee Handbooks

Without a clear, up-to-date employee handbook, your business can face confusion, inconsistency, or even legal exposure.

How to fix it: Review your handbook annually. Make sure it reflects current Wisconsin and Minnesota employment laws, and includes sections on sick leave, harassment prevention, and flexible or remote work. If you don’t have a handbook yet — that’s your first step.

2. Inconsistent Hiring Practices

When you’re growing quickly, it’s easy to overlook consistency in job postings, interviews, and offer letters. But every stage of hiring must align with fair employment laws.

How to fix it Create standard templates for job descriptions, interview questions, and offer letters. Train anyone involved in hiring on anti-discrimination laws and pay transparency requirements.

3. Overlooking State-Specific Leave Laws

This one’s big. Both Wisconsin and Minnesota have evolving leave regulations, including sick and safe leave and the new Minnesota Paid Family and Medical Leave program launching soon.

How to fix it: Review your time-off and leave policies now to ensure compliance before new requirements take effect. Not sure where you stand? Book your free 15-minute HR Compliance Check — we’ll review your policies and highlight what needs attention.

4. Not Having a Trusted HR Partner

Most small business owners handle HR on the side of everything else — but guessing on compliance can be expensive and stressful.

How to fix it: Partner with a fractional HR consultant who can guide your business through compliance, growth, and people challenges — without the cost of a full-time HR hire.

The Bottom Line

Small business HR doesn’t have to be complicated — it just needs to be intentional. By addressing these five areas, you’ll protect your business, strengthen your team, and build the foundation for long-term growth.

Ready to find out where you stand? Book your free 15-minute HR Compliance Check today and get peace of mind that your HR is working for your business — not against it.