Specifically, how do job descriptions protect against lawsuits and money damages? Here are several ways job descriptions help. Good job descriptions:

1. Promote proper classification

Wal-Mart's recent $640 million lawsuit should be a wake-up call that good old wage-and-hour issues are worth a little attention, and job descriptions are a key factor. When job descriptions have proper detail, they help you reach a correct conclusion about exemptions. (Remember, the title is NOT the determining factor—job duties and responsibilities are.)

Example: Your secretary sometimes seems to know more about running your business than you do. You decide to put this person on salary and change the job title to executive assistant. But does this give you the green light to treat the position as exempt? Not necessarily, because you can't determine whether a position is subject to overtime rules based solely on a job title.

2. Support accurate compensation structures

Good job descriptions clarify which jobs are similar and entitled to similar pay, and which jobs warrant different pay because they require different levels of skill, knowledge, or responsibility, or because they contribute to company goals in different ways.

A great many pay-based discrimination suits will be avoided by detailed job descriptions.

3. Aid in defending against discrimination charges

Federal laws prohibit employers from basing employment decisions such as hiring, compensation, or other terms, conditions, and privileges of employment on illegal factors such as race, religion, sex, or national origin. But these laws don't bar you from selecting, promoting, or rewarding individuals based on qualifications and merit. By defining a job's requirements and setting forth clear performance standards, the job description will help to justify your employment decisions and reduce your organization's exposure to costly litigation.

Example: Joshua is an associate engineer. Laura is a project engineer. Based on titles alone, if Joshua is promoted before Laura to a lead engineer position, Laura may raise a question about whether the promotion was made for an illegal reason. But job descriptions reveal that the experience requirements, performance duties, and responsibilities of the position Joshua held are more closely aligned and intended to serve as a springboard to the lead engineer position.

4. Facilitate ADA compliance

By dividing a position's tasks into essential and nonessential duties, you'll be less likely to run afoul of the Americans with Disabilities Act (ADA). When considering whether an accommodation is appropriate, employers start by examining the person's ability to perform the job's essential functions. With job descriptions that accurately list essential tasks and responsibilities, you will be able to respond reasonably to an accommodation request and comply with the ADA.

Example: A deaf employee applies for a promotion and requests a special telephone. If the job description lists phone communication as an essential function, you would be on notice that you may have to provide the telephone as an accommodation unless this would pose a hardship on you.

On the other hand, if the job description's essential functions indicate that a phone could not be used for this function, you may not have to consider accommodating the worker.

5. Help in complying with OSHA rules

When a job description includes information about working conditions, such as dangerous work environments and special equipment used, it can help ensure compliance with safety rules and alert an applicant that the position is hazardous.

Example: OSHA's bloodborne pathogen standards are typically applied according to the likelihood that an individual will be at risk for exposure. Job descriptions that include information about patient contact provide a guideline for applying these OSHA requirements