7 Labour Laws You Might Be Breaking

January 4, 2023 Obaid Ur Rehman 0 Comments 7 Labour Laws You Might Be Breaking, Labour Laws

There are many labor laws you should know, but check out these seven you may be missing.

Workplace safety and protection are helped by labour laws, which act as precautions and protections.
The Occupational Safety and Health Administration, which ensures safe and healthy working environments, is responsible for several labour laws and regulations.
Financial fines and legal action may ensue from breaking labour regulations.
This article is for company owners who wish to make sure they abide by all labour rules necessary to operate their enterprise.

Running a business requires adhering to and staying current with all applicable federal, state, and local labour laws and regulations. Large corporations enjoy the luxury of employing HR specialists and legal counsel to keep track of their compliance status and any upcoming changes. This may be more challenging for small enterprises, but a lack of resources is not an acceptable justification for breaching the law. As labour and employment laws are some of the most straightforward to break, it’s vital to keep on top of these difficulties.

Importance of understanding employee labour laws

To comply with labour laws, you must keep abreast of legislative developments and ensure that your company’s activities are compliant with the law.

As a result of some of the more stringent federal labour rules, “many small firms assume they can fly under the radar,” according to senior labour and employment law expert Ashley Kaplan. But the fact is that every employer needs to be aware of how broad the labour law umbrella is that covers enterprises.

A violation of labour regulations can result in fines of up to $10,000 and perhaps jail time. You can be required to pay for missed employee benefits or give your employees back pay plus interest, depending on the nature of the infraction. Additionally, impacted workers may file lawsuits against you, which might result in high court costs, settlement costs, and jury awards. These lawsuits may also harm the reputation of your company, which might have detrimental long-term effects.

FMLA and employee leave

An employment legislation that is sometimes misinterpreted is the Family and Medical Leave Act. Employers in the private sector with 50 or more employees are required to provide qualified workers with up to 12 weeks of job-protected, unpaid leave every 12 months for specific family and medical reasons.

According to Kaplan, “the FMLA bans employers from interfering with, restricting, or rejecting any rights guaranteed by law, in addition to highly stringent restrictions about coverage and eligibility.” It’s critical to comprehend the subtleties.

According to Kaplan, employers may help prevent employee exploitation of the FMLA. Employers should carefully review the justifications provided by workers for taking time off using employee request forms and legally required medical certificates. This will allow you to assess if an employee’s absence satisfies the requirements for FMLA leave.

NLRA’s role with nonunionized employers

The National Labor Relations Act’s rules apply to you even if your firm doesn’t employ any unionized workers. The majority of private businesses are covered by this statute, which gives workers the “mutual aid and protection” (often referred to as Section 7 rights) rights to unionize, collectively negotiate, and engage in coordinated activity. These freedoms include the right to talk about the terms and circumstances of work, such pay.

Employers have already had difficulties as a result of the National Labor Relations Board’s strong approach to social media policy in the workplace, according to Kaplan. Even while the majority of employers have placed restrictions on what their workers may post on Facebook or Twitter, these measures can still get businesses in hot water if they conflict with Section 7 of the NLRA. In order to make sure they aren’t limiting permissible online behaviour Kaplan recommends businesses to carefully develop their social media rules and possibly even seek legal guidance.

OFCCP and affirmative action requirements

The Vietnam Era Veterans’ Readjustment Assistance Act and Section 503 of the Rehabilitation Act are two laws that were strengthened against job discrimination in 2013 by the Office of Federal Contract Compliance Programs of the Department of Labor. Since 2014, covered federal contractors and subcontractors have been subject to affirmative action standards that include quantifiable hiring goals, recordkeeping requirements, and data tracking requirements.

For qualified job candidates with disabilities, contractors must now aim toward a “aspirational utilization objective” of 7% of the entire workforce for those with 100 or less workers, or 7% for each job group for larger companies. The OFCCP mandates that contractors set hiring standards for veterans who are entitled to protection.

Employers should ask candidates to voluntarily self-identify as protected veterans or handicapped people on an OFCCP-compliant form at both the pre-offer and post-offer stages as an extra compliance requirement.

FLSA and IRS employee misclassification

The operations of many small businesses are maintained by independent contractors. However, the federal government could classify these people as employees depending on their affiliation to the company.

The Fair Labor Standards Act mandates that covered companies pay overtime at a rate of 1.5 times the employee’s regular hourly rate to individuals who work more than 40 hours per week. The FLSA’s executive, administrative, or professional exemptions (commonly referred to as “white-collar exemptions”), which include certain job tasks, must clearly apply to any employee who is not entitled to overtime compensation.

Businesses that intentionally misclassify employees to avoid paying overtime, payroll taxes, and other employee-related costs are targets for both the IRS and the Department of Labor, according to Kaplan. Based on three major categories—behavioral factors, financial considerations, and kind of relationship—the IRS applies a 20-factor test to ascertain whether an individual is a worker. The degree of control the employer has over the employee’s daily activities and the employee’s contributions to the company often determine the employee’s position. The distinction between exempt and nonexempt employees may be found in a linked article.

Visit the Small Business Administration website or speak with an attorney if you’re unclear how these or any other employment legal concerns may impact your company.

Since the start of the Trump administration, several rules (and even certain agencies) have been subject to considerable revisions. As a result, it’s critical to get ready for future developments and keep an eye out for more adjustments to the current laws.

Whistleblower Protection Program

It’s critical that workers feel at ease raising concerns about wrongdoing at work. Employees who uncover or disclose a company’s breaches are shielded from disciplinary action or retribution under the Occupational Safety and Health Administration (OSHA) Whistleblower Protection Program. These safeguards allow employees to voice their concerns without worrying about being demoted or fired. If an employer takes any action in retaliation against an employee, it is against the law.

OSHA’s workplace safety rules

OSHA seeks to lessen activities that endanger workers or place them in dangerous circumstances. To reduce risk at work, the Occupational Safety and Health Act of 1970 established a number of safety rules.

For instance, if there are dangerous chemicals at your workplace, you must give your staff safety data sheets on them. Additionally, you must post signs or other materials related to labour laws that instruct employees on how to appropriately report workplace safety hazards. Workers should be informed of their right to request an OSHA inspection as well as any necessary training.

Child labour laws

If you do decide to recruit young people, it’s crucial to get it properly since it may be an intriguing experience. According to the 1938 FLSA, it is your duty as an employer to make sure your workplace is secure and doesn’t jeopardize the health or education of your young employees.

Minors cannot be treated equally to adult employees. They are only permitted to work a specific amount of hours and in a specific industry based on their age. Young people who are 14 years old or younger, for instance, are permitted to work as actors or entertainers, in some agricultural vocations, distribute newspapers, or for their parents.

To find out what is allowed where you reside, see the Employment Law Handbook as these rules differ from state to state. The Wage and Hour Division is in charge of managing safeguards under labour legislation.