If you’ve ever found yourself thinking, “That sounds like a personal issue – they’ll work it out,” you’re not alone. When you’re running a small business, juggling priorities, and trying to lead with heart and efficiency, it’s tempting to brush off certain employee complaints. Especially when they sound minor. Or messy. Or like they’re more about personalities than actual problems.
But the truth is, the way you respond to those moments – especially the messy, uncomfortable, “I-don’t-know-what-to-do-with-this” moments – says everything about your leadership. And more importantly, it has real consequences for your business.
Because not every complaint is just workplace noise. Some are warning signs. And if you ignore the wrong one, you’re not just risking hurt feelings – you’re risking legal exposure, reputational damage, and team trust that may take years to rebuild.
Let’s say someone on your team comes to you and says, “He makes me uncomfortable.” They don’t use the words harassment or hostile environment. They’re not filing a formal report. They’re just talking. But that’s where the alarm should go off in your head. Because even if it sounds vague, even if it seems small, that’s not something to wave away with, “He probably didn’t mean it.” When someone raises a red flag – even a soft, subtle one – you have a legal and ethical responsibility to take it seriously. Especially if it touches on harassment or discrimination.
Now, I know it’s easy to think these rules only apply to big companies with HR departments and layers of policy. But if you’re paying people – even just one person – these rules apply to you too. And they don’t care how many hats you’re wearing or how full your inbox is. That’s the deal when you become the boss.
It’s not just harassment, either. Wage complaints are another huge landmine, and they’re sneaky. They show up in everyday language: “I didn’t get my break yesterday.” “I’m not sure I’m being paid for all the hours I work.” Or “Wait, am I supposed to get overtime?” These don’t always feel like emergencies – but legally, they are. Because wage and hour laws are crystal clear. And if someone flags a violation – even unintentionally – you need to stop, investigate, and fix it fast. Especially in states like California, where the rules are strict and the penalties are steep.
Then there’s safety – something small business owners sometimes overlook because it doesn’t feel like it applies to them. You’re not running a warehouse, after all. But safety isn’t just about broken machinery or slick floors. It’s also about emotional and psychological safety. If someone says they don’t feel safe – maybe because of a coworker’s behavior, or a toxic dynamic, or the tone of communication in the office – you can’t shrug that off. You’re creating a culture with every decision you make. And when someone tells you that culture doesn’t feel safe, it’s your job to listen and act.
One of the most overlooked – and most dangerous – areas is retaliation. It happens more often than you’d think, and it’s rarely intentional. Someone files a complaint, and then suddenly they’re not invited to meetings anymore. Their hours get cut. They’re given a performance improvement plan out of the blue. And even if you think it’s unrelated – even if it is unrelated – if the timing looks suspicious, you could be at risk. Retaliation claims are expensive. And judges and juries tend to side with the employee if they think someone was punished for speaking up.
I’ve seen cases where the original complaint didn’t go anywhere, but the retaliation claim did – and that’s what ended up costing the business big. Because it’s not just about what happened. It’s about what you did after someone raised their hand.
“… not every complaint is just workplace noise. Some are warning signs. And if you ignore the wrong one, you’re not just risking hurt feelings – you’re risking legal exposure”
And then, of course, there’s the hardest one of all: when the complaint is about you.
I know. That one hurts.
When someone suggests that you did something wrong – even if it’s small, even if you disagree – it’s personal. You feel attacked. Your instinct might be to defend yourself, to shut it down, to question their motives. But those moments are when leadership gets real. Because how you handle a complaint about yourself tells your team everything they need to know about what kind of workplace you’re building.
So what do you do when any of these complaints land on your desk?
First, you pause. Don’t react – respond. That means no immediate explanations, no defensiveness, no pushing it aside. Just listen. Say thank you. Let the person know you hear them, and that you’ll take the appropriate steps. You don’t have to promise an outcome. But you do need to promise a process.
Then, document it. Even if it’s just a note to yourself or an email to HR, write it down. Documentation protects you and your team.
If you’re unsure what to do next, don’t try to go it alone. That’s not brave – that’s risky. Reach out to your HR consultant, attorney, or support platform. They exist for a reason. Use them.
You’ll also want to investigate – even if the complaint feels small. That might just mean having a few follow-up conversations or checking email threads. You don’t need to launch a full-blown inquiry like a Fortune 500 company. But you do need to show that you took it seriously and handled it consistently.
Whether you’re an entrepreneur jumping into a leadership role, a seasoned business pro with new HR responsibilities, or just starting your HR career – we’ve got the right path to guide you through your HR hurdles.
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Keep confidentiality top of mind. Don’t share more than necessary. And once the issue has been addressed, follow up. Let the employee know that steps were taken. You don’t need to give them a play-by-play. But they do need to know they weren’t ignored.
And please – please – be mindful of retaliation. That’s one of the easiest traps to fall into without realizing it. If someone complains, and suddenly they’re treated differently, that’s a problem. Be aware of your tone, your actions, and your decisions. Fairness matters more than ever in those moments.
Look, I know you’re busy. I know complaints can feel like distractions from the “real” work. But this is the work. Creating a space where people feel heard, safe, and supported – that’s leadership. And handling complaints well isn’t just about compliance. It’s about building a business that people trust.
You don’t have to be perfect. You just have to be present. Lead with integrity. Stay curious. And never underestimate the power of listening when it matters most.