EEOC tactic: Force law-breaking employers to create an HR department.

While many smaller organizations slide by without having a dedicated HR director or HR department, a new court ruling will gives those HR-less companies something to think about.

The message: No employer should make HR an afterthought. Failing to dedicate at least one person to the HR role opens the door to all kinds of liability, and it sends the message to employees that they don't matter.

Recent case: The EEOC settled a sexual harassment lawsuit it brought against several IHOP franchises in New York and Nevada. Employees alleged that all sorts of awful behavior was ignored by management, including the touching of female employees genitalia and vulgar name calling.

In addition to a $700,000 payment to victims, the EEOC consent decree required the companies to create a human...