Hiring staff? Good for you! It means your business is thriving. Now is the time to get up to speed or reacquaint yourself with any labor laws you’ll need to be compliant with. Labor laws were created to protect employees’ rights. If you’re vigilant, you can avoid financial headaches. Here’s some advice to stay on track with labor law requirements:
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Understand what state and federal labor laws apply to your business. While federal laws apply nationwide, state laws vary. For example, if you have 20 or more employees, you must post notice requirements for the Age Discrimination in Employment Act. Consult qualified experts for guidance specific to your situation.
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Create a compliance checklist. You are likely required to post both federal and state labor law posters in visible locations in the workplace. Pay Tech provides these for clients.
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Compile an employee handbook. This document helps reduce misunderstandings by clearly outlining employee rights and benefits. Keep it updated as laws and policies change, and ensure every employee signs a written acknowledgment of receipt. Pay Tech offers software with a step-by-step guide tailored to the states you operate in.
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Perform a job discrimination self-audit. Discriminatory practices can lead to costly legal issues. Regular labor law compliance audits help prevent violations and protect your business.
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Know anti-discrimination laws. Title VII of the Civil Rights Act prohibits discrimination based on race and gender. Stay informed of both federal and local anti-discrimination regulations.
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Use an employment agreement. These contracts legally protect both employer and employee rights. You can use a customizable template or consult an attorney. This is a vital document you should never skip.
The major federal laws
These are the major places small businesses can make mistakes, often inadvertently. Be sure you’re on top of this:
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Adhere to regulations on minimum wage and relevant overtime pay. Ensure your payroll practices comply with the Fair Labor Standards Act (FLSA).
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Avoid hiring workers not eligible to work in the United States. Verify employment eligibility using Form I-9 and the E-Verify system if applicable.
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Know about special rules for employees who are minors. Child labor laws set restrictions on hours, job types, and conditions for underage workers.
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Make sure you know whether leave is paid or unpaid by understanding how to apply the Family and Medical Leave Act (FMLA). It provides eligible employees with job-protected leave for qualifying family and medical reasons.
Be proactive to reduce potential consequences of noncompliance. Keeping up with federal labor laws as well as state and local regulations helps you build a sustainable long-lasting business. You may want to work with a qualified payroll professional who can help conduct a labor law compliance audit to identify potential violations so you can continue running your business without a hitch. Pay Tech offers certified HR professionals for when you are in doubt.
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