How to Navigate U.S. Employment Laws for Business Owners

While employment rules and government regulations may seem like a hassle - who wants another rule to follow? - they exist for a reason. It was once acceptable in this country to employ young children in factories, to expect people to work six days a week with no time off, and to discriminate against someone based on their color or gender.

Employment regulations were enacted to address these risky and damaging behaviors while also protecting the health and safety of American workers.

They also look after your best interests. You can run your business as you like, as long as you follow the laws and regulations. These laws apply to recruiting, firing, promoting, and training your employees. They also address harassment, salaries, and benefits. Because these laws can be difficult to understand, Homebase provides some guidance on how to promote employees and respect the rights of pregnant staff. In a nutshell, it is illegal to recruit, terminate, or promote anyone in the groups specified above. It is also prohibited to set salaries and benefits for employees based on these classifications. Many employee rights legislation are covered by the EEO laws. These include the right not to be harassed or discriminated against based on the protected categories listed above. Employees are also entitled to equal remuneration for employment, appropriate accommodations for medical problems or religious convictions, and the confidentiality of their medical information. Other employee rights statutes are: The Family and Medical Leave Ac The Family and Medical Leave Act (FMLA) allows employees to take up to 12 weeks of unpaid leave for specified circumstances, including as the birth or adoption of a child, receiving treatment for or recovering from a serious illness, or caring for a sick relative.

FMLA is governed by precise laws, and only small business owners with 50

or more employees are expected to comply with its obligations. Whistleblower Protection Law Under whistleblower protection laws, it is illegal for a small business owner to retaliate against an employee who files a complaint with government agencies such as OSHA, the Wage and Hour Division, or the Office of Federal Contract Compliance Programs. Non-competition and nondisclosure agreements Non-compete clauses can be an important part of your relationship with your team members, particularly subject matter experts. A non-compete provision is a contractual condition between a business owner (employer) and an employee that prohibits the employee from working for a competitor or starting a competing firm within a specific geographical area and for a set period of time after employment ends. The Americans With Disabilities Act Another key anti-discrimination law to grasp is the Americans with Disabilities Act (ADA). In addition to not discriminating against people with disabilities, you must make reasonable adjustments to allow them to execute their work obligations. How about background checks? As you go through the recruiting process, you might wish to conduct a background check on possible candidates. There is no law preventing you from doing so, but there are laws protecting the applicant. You must first obtain permission to do a background check, which candidates may deny. If they decline, you do not have to hire them. Homebase provides a checklist to follow if you want to do a criminal background check throughout the employment process.

Employee categorization and wage laws

EEO rules make it illegal to set salaries based on the same protected groups mentioned above. It's also crucial to comprehend the Fair Labor Standards Act (FLSA), which governs employee classification. Non-exempt versus exempt employee classification Employee classification laws address the requirements for employee salaries. There are two forms of employee classification: exempt and non-exempt. Exempt personnel are usually paid a yearly wage for their services. They are free from federal minimum wage and overtime pay rules, but they must also meet additional conditions, such as receiving a fixed compensation of at least $684 per week regardless of the quality or quantity of their labor. Non-exempt employees are often compensated on an hourly basis. They must be paid at least the federal minimum wage, or the state minimum pay, whichever is higher. Non-exempt employees are entitled to overtime pay at 1 ½ times their hourly rate for labor exceeding 40 hours per week. Non-exempt employees must keep accurate records of their weekly working hours. Homebase's online timesheets might help you keep on track with your hours. Contract employees and freelancers. As your company grows, you may want to consider recruiting independent contractors or freelancers. These workers are vendors, just like any other supplier you do business with. As a result, you are not required to observe employment laws because they are vendors rather than workers. However, you must still adhere to EEO regulations when issuing them contracts. There are also tax rules to observe, specifically issuing a 1099 for every payment made to a contract worker or freelancer that exceeds $600 in a calendar year.