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Understanding the Basics of Employment Law: What Small Business Owners Need to Know

In this blog post, we will cover the basics of employment and labor law and what small business owners need to know to comply with the law.


By: Jacob Davis, Esq.

As a small business owner, it is important to understand the basics of employment and labor law to protect your business and avoid costly legal issues. Employment and labor law is a complex and ever-changing area of law that governs the relationship between employers and employees.

So ask yourself, are you confident in your knowledge of employment and labor law?

No? Don’t worry, we’ve got you covered.

In this blog post, we will cover the basics of employment and labor law and what small business owners need to know to comply with the law.

Hiring Practices

Anti-discrimination laws are a crucial aspect of employment law. The Civil Rights Act, Americans with Disabilities Act, and Age Discrimination in Employment Act prohibit employers from discriminating against employees based on certain protected characteristics. It is important to ensure that your hiring practices comply with these laws to avoid discrimination claims.

Immigration and citizenship status are also important considerations when hiring employees. Employers must verify that employees are authorized to work in the United States but should avoid discriminating against employees based on their citizenship status or national origin.

Wage and Hour Laws

The Fair Labor Standards Act governs wage and hour laws in the United States. It requires employers to pay non-exempt employees at least the minimum wage and overtime pay for hours worked over 40 hours per week. Additionally, employers must maintain accurate records of non-exempt employee hours worked and pay. Exempt employees are not eligible for overtime. If you are struggling to determine if an employee is exempt or non-exempt, you should consult an attorney as there are specific rules promulgated by the federal government.

Workplace Safety

Employers have an obligation to maintain a safe workplace under the Occupational Safety and Health Act. This includes providing a workplace free from recognized hazards and complying with OSHA standards. Employers should take steps to identify and address potential workplace hazards to keep employees safe.

Be sure to address the safety precautions of the workplace in your Employee Handbook. If you don’t have an Employee Handbook for your business, you are running a risk. Click here and Nalls Davis will help you create one right away.

Employee Leave and Accommodations

The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid leave per year for qualifying reasons, such as a serious health condition or the birth of a child. Additionally, the Americans with Disabilities Act requires employers to provide reasonable accommodations to employees with disabilities. If your business is covered by FMLA, it is important to comply with these laws and provide employees with the necessary leave and accommodations to avoid legal issues.

Employee Leave and Accommodations should also be covered in your Employee Handbook. You can read more about Employee Handbooks here.


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Workplace Harassment and Discrimination

Title VII of the Civil Rights Act prohibits harassment and discrimination in the workplace based on protected characteristics. Employers should take steps to prevent and address harassment and discrimination in the workplace to create a safe and inclusive work environment. If an employee complains about being harassed at work, then it is important to take steps to remedy the harassment which could, at a minimum, include conducting an internal investigation.

Termination and Layoffs

At-will employment is the default employment relationship in the United States, which means that employers can terminate employees for any reason, except for an unlawful reason. However, there are exceptions to at-will employment, and employers should be aware of these exceptions and avoid discrimination and retaliation claims when terminating employees or implementing layoffs. If an employee has a contract, then the contract should specify in detail when the employment relationship may end and how it should be terminated.

Independent Contractor vs. Employee Classification

There are important differences between independent contractors and employees, and misclassifying workers can lead to significant legal consequences. Employers should understand the differences between independent contractors and employees and properly classify workers to avoid legal issues. If you are hiring an independent contractor, it is best to consult with an attorney prior to making an offer or drafting a contract.

Conclusion

Employment and labor law is a complex and important area of law that all small business owners should understand. By following these basic guidelines, you can avoid legal issues and create a safe and inclusive work environment. If you have any questions about employment law or need legal advice, please do not hesitate to contact us at Nalls Davis Attorneys at Law. We offer a FREE consultation to discuss your employment and labor law needs.

Disclaimer

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.

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Business Law Jacob Davis, Esq. Business Law Jacob Davis, Esq.

Navigating Employee Handbooks: A Guide of Do’s and Don’ts for Employers

Employee Handbooks are essential tools to help establish a transparent and productive work environment.


You’re a business owner, so I don’t have to tell you how important it is to have a clear set of guidelines for your employees. Guidelines help ensure a productive and transparent work environment, but they also help minimize the risk of future legal issues. Employee handbooks are an essential tool for establishing these guidelines, but there are some important dos and don'ts to keep in mind when creating one.

At Nalls Davis Attorneys at Law, we understand the unique challenges that business owners face. That is why we are here to help you navigate the complex world of employment law. In this article, we will provide you with our proven-to-work structure for employee handbooks, so that you can create a handbook that is both effective and adaptable.

The Dos of Employee Handbooks:

  1. Ensure Your Policies and Procedures are Clearly Communicated: Outlining the rules and regulations for employees to follow in the workplace is a recommended practice. Be sure to address things like work hours, time off policies, and other specific workplace-related policies. Setting clear guidelines will help ensure that employees understand expectations and can help reduce misunderstandings and conflicts.

  2. Company expectations for employee conduct and behavior must be clearly defined: Be sure to set standards for workplace behavior, such as anti-harassment and anti-discrimination policies. These policies should be clear and concise; furthermore, they should outline the consequences of any violations. It's important to establish a workplace culture that promotes respect and inclusion. You want to ensure that fairness in the workplace is the expectation for everyone, including management and employees.

  3. Every employee should have easy access to handbooks and opportunities to provide feedback: Whether it’s a hard copy or electronic form, employee handbooks should be easily accessible to all employees. In addition, accommodate employees of different backgrounds by providing language accessible handbooks.  It is also important to provide employees with regular opportunities to ask questions or provide feedback on the handbook.

  4. Your handbook is never finished, update it regularly: Expect changes in law and circumstances. Policies of yesterday will eventually become ineffective. It is important that you routinely update your handbook. Review your handbook at least once a year along with any feedback. Determine whether or not any changes should be made.


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The Don'ts of Employee Handbooks:

  1. Don’t go without an employee handbook: Pretty simple, right? All companies need an employee handbook. And I’m not recommending the use of an online template. Rather, a best practice is to hire an attorney to draft the handbook tailored to your specific business. Remember, one size fits all is not conducive to business success.

  2. Don’t include any discriminatory or illegal language: Avoid toeing the line of language that appears to be neutral but has a different impact on protected classes, such as dress code or grooming policies. These types of policies can be viewed as discriminatory and can result in legal action against your company. A rule of thumb: make sure that all of the language in your handbook is inclusive and does not discriminate against any protected classes.

  3. Don’t include any provisions that waive an employee's rights: This includes provisions that waive an employee's rights under the law, such as the right to file a complaint or the right to join a union. These types of provisions are illegal and can result in costly legal action against your company.

  4. Don’t forget to have employees sign off on receiving a handbook: This is another “get it in writing” situation. Listen, employees cannot be held to a policy or standard if they have never acknowledged receiving or knowing about a particular policy. Each handbook should have a provision for employees to sign and acknowledge that they have read and understand the employee handbook. The employee handbook should become part of the regular onboarding process.

  5. Don’t let the handbook serve as a substitute for consistent and fair enforcement: Employee handbooks should be used as a guide for employees, but they should not be used to consistently manage conduct and fair enforcement. If you have policies in place, it is important to enforce them consistently and fairly for all employees.

Creating a compliant and effective employee handbook is a crucial step in building a strong and successful business. At Nalls Davis Attorneys at Law, our experienced employment lawyers can help you navigate the complexities of employment and labor law and ensure that your employee handbook is both effective and compliant. Click here to book a FREE consultation and get started on creating your company's employee handbook.

Disclaimer

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Nalls Davis Attorneys at Law and its members do not recommend or endorse the contents of the third-party sites.

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