How to Handle an Employee Complaint When You Don't Have HR
Updated: 1 day ago
When an employee brings you a complaint and you have no HR team, take it seriously, listen without judging, and look into it promptly and fairly. Then decide what to do, tell the employee what you can share, and make sure no one is treated worse for speaking up.
You do not need an HR department to do this well. You need a simple routine you follow every time, so your first serious complaint does not turn into a scramble. This is the routine I walk small business owners through.
Step 1: Listen and write down what you hear
Give the employee your full attention, and do not defend yourself or anyone else. Ask what happened, when it happened, who was involved, who saw it, and what outcome they are hoping for. Take notes in their words and read them back so you know you heard it correctly.
Avoid promising complete confidentiality. You can say you will share details only with the people who need them to look into the issue and fix it. Tell the employee what happens next and when they will hear from you.
If the complaint is about you or a close friend, bring in someone outside the situation. An outside HR consultant or employment attorney can do that, and this post explains how to choose.
Step 2: Stop any ongoing harm right away
If the complaint describes something that is still happening, such as harassment, threats, or an unsafe condition, deal with that first. You may be able to adjust schedules or reporting lines for a short time while you look into it. Choose steps that do not penalize the person who complained. The EEOC lists a transfer to a less desirable position as an example of retaliation, so moving the employee who spoke up is rarely the right fix. See the EEOC retaliation page.
Step 3: Decide who looks into it
Pick someone who is not involved, has no stake in the outcome, and can keep the matter private. That might be a manager from another team, an owner who is not part of the issue, or an outside professional. For complaints about harassment, discrimination, or serious misconduct, I would lean toward outside help.
The EEOC suggests that, if possible, employers name at least one person outside an employee's chain of command who can receive harassment complaints. You can read that in its harassment policy tips. If you have not set up a way for employees to raise concerns, start with this guide to concerns that land on the owner's desk.
Step 4: Gather the facts quickly and fairly
The EEOC says harassment complaints should get a "prompt, thorough and impartial" investigation. The same standard is a good one for any serious complaint. Here is a simple way to do it.
Talk to the employee who complained, the person named, and anyone who saw what happened. Ask each person the same open questions.
Collect records that matter, such as schedules, messages, emails, time records, and earlier notes.
Let the person named respond before you decide anything.
Keep each conversation private and ask people not to discuss it with coworkers.
Write down facts, not opinions or labels.
Start within a day or two and finish in a reasonable amount of time. Tell the employee roughly how long it will take, and update them if it runs longer.
Step 5: Decide, act, and close the loop
Weigh what you learned and compare it with how similar situations were handled before. The outcome might be no policy violation, a misunderstanding cleared up, coaching, training, a written warning, or termination. The EEOC's small business fact sheet on harassment says the employer decides what corrective action fits the circumstances, and that the law does not require firing the person who harassed. Options range from counseling to termination.
Tell the employee the review is finished and, where appropriate, that action was taken. You do not need to share details about another person's discipline. Check in a few weeks later to make sure things are better.
Step 6: Protect the employee from retaliation
Federal EEO laws prohibit retaliation against an employee who reports a problem. The EEOC says taking part in a complaint process is protected under all circumstances, and its examples of retaliation include a lower-than-deserved review, a transfer to a less desirable position, and increased scrutiny.
You can still discipline someone for legitimate, non-retaliatory reasons, as long as you can show them. Talk with your managers before they hear about the complaint secondhand. Make it clear that no one gets the cold shoulder, extra scrutiny, or schedule changes because someone spoke up.
Which laws may apply?
It depends on the complaint. The EEOC says the federal laws it enforces generally cover employers with 15 or more employees, and 20 or more for age discrimination, as shown on its small business information page. Employees generally have 180 days to file a charge, or 300 days where a state or local law also applies.
State law can reach smaller employers. For example, California's Civil Rights Department says harassment is prohibited in all workplaces, even those with fewer than five employees, and discrimination rules apply to employers with five or more employees (source). New York's Division of Human Rights says its law covers every employer in the state, regardless of size (source). Check your own state.
Pay complaints have their own rules. The Department of Labor's Fact Sheet 77A says the Fair Labor Standards Act prohibits retaliation, that oral and written complaints are protected, and that most courts have ruled internal complaints to an employer are protected too. Complaints raised together with coworkers about pay or working conditions may also be protected under the National Labor Relations Act, which the NLRB explains here.
Keep a simple record
Keep your notes, the facts you gathered, your decision, and what you told the employee in one confidential file, separate from the regular personnel file. The EEOC suggests documenting the results of an investigation and any corrective action, which you can see in its guidance on internal complaints. For a template and examples, see what managers should document after an employee conversation. If you also want a bigger picture of how complaints fit with the rest of your people practices, read Employee Relations for Small Businesses.
When to call for outside help
Bring in an HR consultant or an employment attorney early if the complaint involves harassment, discrimination, retaliation, unpaid wages, safety, threats, the owner, or a possible lawsuit or agency charge. A written policy also helps, and our handbook guide covers where to start.
Frequently asked questions
Do I have to investigate every complaint?
Look into every complaint enough to understand it. A scheduling disagreement may only need a conversation. Complaints about harassment, discrimination, safety, pay, or retaliation deserve a prompt, documented review.
Can I promise the employee confidentiality?
Not completely. The EEOC suggests policies say confidentiality is protected "to the greatest possible extent," which recognizes that some people need to know. Tell the employee that up front.
What if the employee asks me not to do anything?
If the complaint involves possible harassment or a safety risk, you may still need to act. The EEOC says employers are responsible for quickly ending harassing behavior once they learn about it. Explain that to the employee honestly and gently.
Can I discipline an employee who made a complaint?
You can discipline for legitimate, documented reasons that have nothing to do with the complaint. The EEOC notes employers are free to do so when motivated by non-retaliatory reasons. Timing matters, so get advice before acting soon after someone complains.
Official sources
I checked these pages on November 10, 2026. Most do not show a revision date, and DOL Fact Sheet 77A is dated December 2011.
A low-pressure next step
If you are working through a complaint right now, or want a routine in place before the next one, you can book an HR strategy conversation with me. If you would like a quick read on where your HR stands first, take the free HR Snapshot or look at the HR Diagnostic.
This is general information, not legal advice. Laws change and vary by location, so consult employment counsel for your specific situation.
