Adhering to labor and employment laws isn't just about fulfilling obligations; it's about creating an environment where everyone can flourish. Why is compliance essential? Employee well-being, trust and reputation, risk mitigation, talent attraction, sustainable growth …
1. Verify the right to work in the United States: Employers have three days to complete an I-9 for new hires after verifying eligibility to work in the U.S. using the approved documents listed on the form.
2. Classify independent contractors and unpaid interns properly: In addition to properly classifying employees, properly classify any contractors or unpaid interns in order to avoid liabilities for overtime pay, tax penalties, and employee benefits.
3. Plan for payroll and benefits administration: Do not assume that using a professional employer organization or temporary staffing agency insulates the business from liability for employment law violations.
4. Document relationships and key terms in writing: Specify in written offer letters, employment agreements and/or workplace policies that the employment relationship is at-will unless there is a contract between the parties that changes this status, and document other key terms of employment.
5. Comply with federal and state wage and hour laws: Classify employees as exempt or nonexempt from the federal minimum wage and overtime laws under the Fair Labor Standards Act and applicable state laws.
6. Ensure Completion of necessary tax forms and required postings: Employers must register new hires and complete requisite forms to ensure appropriate tax deductions and withholdings, and various workplace posting are required of every employer regarding EEO, ADA, FMLA, FLSA, workers’ compensation coverage and other applicable laws.
7. Personal liability of founders: Ensure that founders and owners understand that they may be personally liable for unpaid wages even if the business fails.