At some point, an unsuccessful job candidate may challenge your decision not to hire him. Then you will have to justify your selection process. The more objective criteria you use, the more likely a court will agree not to second-guess your decision. But if you add subjective elements to the process, you may end up being charged with discrimination.

If you offer short-term disability (STD) benefits for employees who can’t work because of illness, you probably insist on medical documentation. If the employee doesn’t provide that information within the reasonable timeline your STD plan requires, you can count the absence against the employee and terminate her.

Don’t expect to get a case tossed out just because the complaint is vague. The fact is, courts are willing to let an employee continue a quest for a big jury award as long as the complaint puts the employer on notice about the essentials, if not the specifics, of the case.

Consider this scenario: An employee lodges a complaint that her sex or race kept her from being promoted. Shortly after, you offer her an opportunity for advancement. She then turns around and sues, alleging that the offer was a sham. Fortunately, courts are rejecting such arguments.

While Congress ponders the Employee Misclassification Prevention Act, several states are studying ways to target employers that misclassify their employees as independent contractors. Minnesota is part of a joint task force studying the misclassification problem.

The U.S. Department of Labor (DOL) is stepping up efforts to encourage and support certain types of wage-loss claims by low-income workers. Labor Secretary Hilda Solis announced in April that the department was rolling out its “We Can Help” campaign to address this issue. If you employ relatively low-wage workers, you need to be aware of this program.

Every year, employers face yet another increase in their health insurance premiums. And if there are many older or sick employees, those costs will keep on rising. Even adding one sick child to the list can drive costs into the stratosphere. But before you even consider firing (or refusing to hire) someone because they might jack up insurance costs, count your dollars, not your pennies. You might be staring down a lawsuit that could dwarf whatever premium costs you hoped to avoid.

You know that you can’t retaliate against an employee who, in good faith, complains about alleged discrimination. That’s true even if it turns out that he was wrong and no discrimination actually occurred. The key there is “good faith.” It’s not retaliation to fire someone who is simply trying to extort a benefit by making a frivolous complaint.

It’s one of the worst HR nightmares possible: One disgruntled employee claims she represents hundreds or thousands of employees who have allegedly suffered discrimination. What was a single case suddenly grows into a huge, companywide class-action lawsuit—with a price tag that has suddenly grown exponentially. Fortunately, federal courts handling Minnesota cases seem to be stepping back from the brink. They’re not approving as many class-action requests.

Tim Murnane left real estate development firm Opus Northwest in June 2009 after negotiating a $2 million severance package to be paid out over 10 years. Murnane took a new position with St. Louis-based Clayco Inc., another developer in the Twin Cities area. All was going well until March, when a scheduled $79,266 payment from Opus failed to arrive in Murnane’s mailbox ...

When Congress raised the mandatory retirement age for commercial pilots from 60 to 65, not all pilots were pleased. Pilots who had been forced to retire under the 60-years-of-age rule were not grandfathered into the new system. Now the pilots are seeking back pay and lost wages under state laws and the Federal Tort Claims Act.

Sometimes, all it takes to stop a potential lawsuit based on a supervisor’s poor behavior is a timely warning. Take, for example, what might happen if a subordinate believed her supervisor was targeting her for poor treatment because of her race. If HR takes a strong stance and persuades the supervisor to change her approach, then a potential lawsuit may dissolve into nothing.

Lately, the EEOC has been on a campaign to stamp out discrimination based on religion—especially discrimination related to religious dress. As part of that effort, the EEOC has focused on employment agencies, demanding that they do more to ensure that the employers they refer temporary workers to aren’t biased. Now the 8th Circuit has reined in the EEOC a bit—for the time being.