4 Unexpected Ways Your Business Could Face Fines

Running a business comes with countless responsibilities, but some lesser-known areas can lead to expensive fines if overlooked. While you may be focused on generating revenue, neglecting these areas could land your business in legal trouble. Discover four unexpected ways your business could face fines and learn some strategies for protecting yourself from these unnecessary costs. 

1. I-9 Verification Issues

 Mishandling Form I-9 can lead to hefty penalties, as employers must verify employees’ work authorization. I-9 verification issues that could lead to fines include incomplete forms, expired documents, or poor recordkeeping. These issues might result in fines ranging from $252 to $2,507 per employee. To guarantee compliance, accurately completing I-9 forms on time and verifying employee documentation is essential. Regular internal audits can catch errors, while securely storing forms ensures proper recordkeeping. By staying up-to-date on employment verification regulations, you can prevent non-compliance risks. 

2. Data Protection Violations

 With data breaches making headlines, protecting customer and employee data has never been more necessary. Many businesses underestimate the consequences of failing to comply with data protection laws like GDPR or CCPA. Nevertheless, depending on the severity of the violation, non-compliance could cost your business thousands of dollars in fines.  To avoid compliance-related fines, develop a solid data protection strategy by identifying risks, implementing safeguards, and training your employees on data protection best practices. 

3. Misclassifying Workers

 Classifying employees incorrectly—as independent contractors instead of full-time staff, for example—is another common pitfall. Misclassification can lead to tax penalties, unpaid overtime fines, and potential lawsuits. To stay compliant, make sure you understand federal and state guidelines for employee classification. If you’re feeling unsure about the correct employment status, consider seeking legal advice and adjust your practices immediately. 

4. Ignoring Local Zoning Laws

Without a proper understanding of zoning laws, expanding your operations or altering your physical workspace can cause hefty fines or forced shutdowns. Even something as small as improper signage could lead to violations. Thankfully, you can avoid this by consulting with local zoning officials before making changes. Research regulations for your business type and ensure you secure all necessary approvals and permits. Small oversights can lead to significant financial penalties, but with careful planning and compliance strategies, you can avoid these risks. Now that you’re aware of these four unexpected ways your business could face fines, you can protect your business and focus on growth.