Employment Law for Employers

When starting a small business, you can grow your business as you see fit. When you grow and start to hire more employees, it can be more complicated. New and changing employment laws have additional requirements for employers. Any violation of state or federal employment laws can be costly and hurt your business’ reputation. 

This provides an overview of common employment law issues for small business owners. You may benefit from the legal advice of an employment law attorney to make sure you are in compliance or if you are facing any lawsuits. 

What Are Common Employment Law Issues That Employers Face?

Being an employer involves many types of employment law issues. At the federal level, employment laws generally fall under the U.S. Department of Labor (DOL). However, states also have employment agencies that enforce employment and labor laws. Some common employment law issues that your business might have to deal with include: 

• Workplace safety
• Employment discrimination
• Equal pay for equal work
• Overtime pay and unpaid wage claims
• Family and medical leave
• Workers’ compensation
• Wrongful termination and retaliation lawsuits
• Non-compete agreements
• Unemployment benefits
• Unions and labor organizations

Employers’ Responsibilities for Workplace Safety

The Occupational Safety and Health Administration (OSHA) requires employers to provide a safe workplace that’s free from known hazards. This includes preventing exposure to toxic materials and providing the proper protective equipment for your workers. As an employer, it is your responsibility to mitigate these hazards. Workers can refuse to complete a task if they believe it could jeopardize their safety.

Preventing Employment Discrimination

Federal laws prohibit employment discrimination based on protected classes. Federally-protected classes for employment discrimination include: 

• Race
• Color
• Religion
• Sex (including pregnancy, sexual orientation, gender identity, and sexual harassment)
• Age
• Disability (under the Americans with Disabilities Act)
• Genetic information

Many states provide additional civil rights protections beyond federal employment discrimination laws. 

Employment discrimination laws are not just for hiring or firing. They apply to all areas of employment. This includes job postings, benefits, promotions, and advancement opportunities. It is your responsibility to ensure your workplace is free of discrimination.

Wage-and-Hour Law Violations

The Fair Labor Standards Act (FLSA) is a federal law that mandates the minimum wage for workers and overtime pay. Workers, with few exceptions, must receive at least the federal minimum wage or your state’s minimum wage if it’s higher. Nonexempt employees who work more than 40 hours in a week receive overtime pay for those hours.

The FLSA provides the minimum pay requirements. However, most states have higher minimum wage requirements. Some counties and municipalities have their own minimum wage laws. Employers have to keep accurate employment time records. This may include any time when an employee is on duty.

Time Off for Medical Leave Reasons 

The Family Medical Leave Act (FMLA) covers workers who take time off for a medical condition or to care for a family member. Workers can take up to 12 work weeks of leave over a 12-month period. Examples of eligible events include the birth of a child, caring for a family member, or serious health conditions. Workers can get up to 26 weeks if leave is necessary to care for a covered servicemember. Unfairly denying leave to an employee may leave you open to a lawsuit.

The FMLA only requires unpaid leave. However, some employers allow workers to use paid vacation time, sick time, or other benefits. You must decide your business’ policy and enforce it fairly for all employees.

If you offer it, you are also required to maintain group health benefits during an employee’s leave. At the end of leave, workers who take their FMLA leave are entitled to return to the same or equivalent job. 

Properly Classifying Independent Contractors

Many small businesses use independent contractors as an alternative to hiring full-time employees. However, even if your employment contract says they are independent contractors, state law may consider them an employee. There are important differences between contractors and employees. You can face severe financial penalties for misclassifying workers as contractors. 

Dealing With Workplace Injuries

Injuries on the job will generally lead to workers’ compensation claims. Your state has workers’ comp requirements, including minimum coverage, notice requirements, and recordkeeping requirements. If a worker suffers an injury on the job, you have to report the injury to the state and notify your insurance provider. Denying a workers’ compensation claim for an unfair reason could lead to a lawsuit as well.

Firing Employees

Most employee-employer relationships are on an at-will basis. You can fire employees whenever you want. The employees can leave whenever they want. However, there are important exceptions to this simple rule. You cannot fire an employee for an illegal reason. For example, if you fire an employee after making comments about their race or sex, you may face an employment discrimination claim.

When Should You Contact an Employment Lawyer?

This brief overview of employment law issues gives you an idea of the challenges that you will face in running a business. In addition to federal laws for employers, there are state laws and local laws you need to follow. These laws and regulations are continually changing. Supervisors and human resources have to stay up-to-date with any new employment laws. 

If you need to make changes to employment practices or are facing any labor law claims, it may be time to turn to a legal professional. A local employment lawyer is familiar with the applicable laws and regulations where you operate. They can help you avoid any potential legal issues and respond to any employment law complaints. 

Additional Employment Law for Employers Articles

• Family Medical Leave Act for Employers
• EEOC Charge Of Discrimination: Employer FAQ
• How To Deal With Employee Complaints
• Hiring International Workers
• Using Incentive Stock Option Agreements to Attract and Retain Employees
• OSHA for Employers: The Occupational and Safety Health Act
• Using the EEOC’s EEO-1 Report on Workplace Diversity
• Employee Retaliation Claims

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