Most hiring mistakes that cause legal trouble are not complicated. They come from asking the wrong question in an interview, skipping a form, or treating two applicants differently without a clear reason. This is a short checklist of the rules most small US businesses meet. It is general information, not legal advice; state and local rules add to it, so check with your state or an employment attorney.
Before you post
- Write the job's real requirements down first, and use the same ones for every applicant.
- Several states and cities require a pay range in the job post. Many also limit asking about salary history.
- Avoid wording that suggests an age, gender or other protected group, such as “young and energetic”.
Interviews
Ask about the job, not the person's private life. Questions about age, family plans, religion, national origin, disability or health, and in many places arrest or criminal history before an offer, can create risk even when asked innocently. You can ask whether they can perform the essential duties, with or without a reasonable accommodation.
Background checks
If you use a background check company, federal law (the Fair Credit Reporting Act) requires a separate written disclosure and the applicant's written permission first. If something in the report may lead you not to hire, you send a notice with a copy of the report and a summary of rights, give them time to respond, and then send a final notice. Many states and cities also limit when you can ask about criminal history.
The first day
- Form I-9: every new employee completes section 1 by the first day; you review their documents and complete section 2 within three business days.
- E-Verify: voluntary for most businesses, required in some states and for some federal contractors.
- Form W-4 and any state withholding form.
- New hire reporting: report each new employee to your state, usually within 20 days.
Keep the records
Keep applications and hiring records for at least one year, and I-9s for three years after the hire date or one year after the person leaves, whichever is later. Store I-9s apart from personnel files. Once you reach 100 employees, or 50 as a federal contractor, the EEO-1 report applies.
How HRGP helps
HRGP keeps every applicant's answers, notes and messages in one record, runs onboarding with the I-9, W-4 and state forms for US employees, tracks E-Verify cases, and prepares the EEO-1 report once you need it. See HRGP compliance tools.
The software keeps the steps and records organized; it does not give legal advice or make hiring decisions.
Common questions
Do small businesses have to use E-Verify?
Not under federal law for most private employers, but some states require it and so do some federal contracts. Check your state's rules.
How long do I keep an I-9?
Three years after the hire date or one year after employment ends, whichever is later.
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