Comprehending and obeying labor laws is a vital part of operating a successful business. Employers must be aware of many federal, state, and local regulations to be sure they’re obeying the law, ensuring a workplace that’s as positive as possible, and avoiding expensive lawsuits and fines.
The reason labor laws are often so complex is because they encompass such a broad sector of the workplace. Examples include wages, discrimination, leave/time off, and many others.
That’s why our friends at MSD Abogados en California helped us create this simple informational guide to help businesses stay on the right side of labor laws.
Understanding Federal and State Labor Laws
Legal regulations and requirements regarding labor differ depending on the area of law, and employers must know both the federal and state labor regulations. The Fair Labor Standards Act (FLSA) governs the following in the United States:
- Minimum Wage
- Overtime Pay
- Child Labor Protections
Wage and Hour Compliance
Making certain that wage and hour laws are followed is basic to the whole business. Employers must:
- At a minimum, pay the higher of the federal or state mandated minimum wage
- Accurately classify workers as exempt or non-exempt under Federal Labor Standards Act (FLSA) regulations
- Overtime pay must be provided for non-exempt employees who work in excess of 40 hours per week
- Maintain precise documentation of hours worked and wages paid
Employee Classification: Independent Contractor vs. Employee
Severe legal consequences can result when workers are misclassified as independent contractors rather than as employees. This situation would require the immediate services of legal professionals such as MSD Abogados en California. To accurately classify workers, employers must make a distinction between the two that is based on:
- The extent of control imposed on the worker
- The level of autonomy of the worker
Workplace Discrimination and Harassment Laws
It is necessary for employers to follow and uphold anti-discrimination laws. These include the following:
- The Civil Rights Act
- The Americans with Disabilities Act (ADA)
- The Age Discrimination in Employment Act (ADEA)
These laws stop discrimination based on the following:
- Race
- Gender
- Religion
- Age
- Disability
- Other protected categories
Family and Medical Leave Act (FMLA) Compliance
The Family and Medical Leave Act mandates that particular employers grant qualified employees as much as 12 weeks of unpaid leave for certain specified family and medical situations; chiefly, the health conditions of the employee or the employee’s family members, and the birth or adoption of a child. To comply, employers must:
- Ascertain if they satisfy the 50-employee criterion for FMLA coverage
- Guarantee that appropriate documentation and notification procedures are established and in effect
- Keep employee benefits in place during a leave of absence
Workplace Safety Regulations
The Occupational Safety and Health Administration (OSHA) establishes criteria for safe work environments. It is mandated that an employer:
- Ensure a safe workplace that is void of acknowledged/obvious dangers
- Educate all personnel on the safety protocols in place for their work environment
- Keep documentation of injuries and illnesses in the workplace
Employee Benefits and Compensation
When it comes to providing various kinds of employee benefits, such as health insurance, retirement plans, and paid leave, employers must follow the rules set forth by laws like the Employee Retirement Income Security Act (ERISA) and the Affordable Care Act (ACA). There are a couple of important aspects worth noting:
- Timely and accurate administration of benefit plans
- Notices and disclosures that must be provided to employees
Employment Contracts and Non-Compete Agreements
Contracts of employment, including non-compete and confidentiality clauses, must be legally enforceable. Employers ought to:
- Make sure contracts adhere to state regulations that control employment-related agreements
- Do not craft non-compete clauses that are overly restrictive, as many states limit their enforceability
Wrongful Termination and At-Will Employment
The majority of states in the United States uphold at-will employment, which allows employers to fire employees for almost any reason without prior notice. Remaining under this employment model, employers can dismiss employees as long as they don’t violate anti-discrimination laws, breach contracts, or claim discusses.
To minimize chances of losing a wrongful termination suit, employers should do the following:
- Record the problems that arise with performance and the actions taken in response to poor performance
- Offer well-articulated rationales for decisions to terminate employees
The Experts at MSD Abogados en California Can Help Make Sure Your Business Is Compliant
It can be quite complicated to steer a business through the intricacies of labor laws, yet it is absolutely essential to do so if one wishes to operate a legally sound and successful entity. Regular reviews of the labyrinthine of federal, state, and local laws, not to mention the plentiful judicial decisions that interpret those laws, are a must for employers.
Then, too, there is the business’s own workforce to consider. Employers should train employees not just on the “how-tos” of their jobs but also on the legal rights and responsibilities relevant to their work. And should a business ever feel uncertain about any of these matters, it must not hesitate to enlist legal counsel.
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