One of the biggest worries for many small business owners is running afoul with employment laws. The number of labor laws in the U.S. has increased significantly in the last several years. There are countless federal and state agencies such as Equal Employment Opportunity Commission, the National Labor Relations Board, the U.S. Department of Labor’s Wage and Hour Division that govern these regulations. All of these agencies are looking at all aspects of labor management to ensure small business owners comply with the laws. Forget to comply with one of myriad laws and you will find yourself in the crosshairs of one these agencies. The consequences of running afoul can range from hefty fine to even jail time. So what can you do to ensure you don’t end up in this situation?
There are several steps you can take to avoid being in trouble:
- Make yourself familiar with all the different employment laws and regulations. Some of the most important regulations you need to be aware of are Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), Family and Medical Leave Act (FMLA), Equal Pay Act, the WARN Act, and the Fair Labor Standards Act (FLSA). In addition, different states have their own regulations that you should become familiar with.
- Seek external counsel of employment lawyers. These lawyers have knowledge and experience to guide you through the intricacies of labor regulations. They can not only help you keep a close eye on your operations to avoid running afoul, but can also help fight litigation if needed. Our advice is to hire the lawyer in the local community. If you operate your business in Florida, for example, it is better to hire Orlando business attorneys since they will be familiar with state and local laws and can guide you properly.
- Be aware of all the changes happening in the labor laws and regulations. Government agencies are constantly revamping the regulations and standards related to small business. For example, many states recently enacted an increase in minimum wage. As a business owner you should stay on top of these changes. You should stay in contact with other business owners, attend seminars, visit government websites and do whatever you can stay current.
- Prepare guidelines, manuals and handbooks to ensure all of your managers, supervisors and employees are complying with the law. It is not sufficient that you are complying with the laws and regulations yourself. You are responsible to ensure that your managers are also doing the same. Government will hold you responsible for the actions of your employees.
- Hire a human resource director if you can afford one or at least hire someone with knowledge of these regulations. This will help you focus on your primary business while that person is looking after labor laws and regulations.
Running a small business can be treacherous when it comes to complying with labor laws and regulations. Make sure you follow these guidelines to avoid being in trouble.
