A small company must fulfil all relevant labour law obligations as an employer. These pointers will assist you in remaining compliant.
Hiring staff for a small firm is a significant accomplishment that should be recognised. After all, it indicates that your company is not just expanding, but also prospering. However, employing personnel has one disadvantage: it necessitates being aware of and compliance with any relevant labour rules.
Labor laws are a complex collection of rules and regulations that apply at both the federal and state levels.
One of the primary goals of labour law legislation is to safeguard workers’ rights, which often necessitates educational efforts on the side of the employer.
Failure to comply may have serious financial ramifications, which can be devastating to a company’s bottom line. As a result, it is critical for every small company owner to be cautious about labour law compliance.
While it is impossible to be specific about the actions that each individual business must take, the following five tips can help you stay on track when it comes to your specific labour law compliance requirements.
Understand the Labor Laws That Apply to Your Company
Before you can be confident you’re in compliance, you must first understand which state and federal labour rules apply to your company. Even though federal laws apply throughout the country, there are many variations in the applicability of a specific federal requirement to your specific business.
For example, the Age Discrimination in Employment Act’s notice obligations apply only if you employ 20 or more people.
Aside from federal rules, each state has its own set of labour laws that your company must follow.
A smart approach to get acquainted with the state-level standards is to visit the website of the state agency in charge of employment, which is sometimes referred to as the Department of Labor or something similar.
Create a Checklist for Compliance
Once you’ve determined which regulations apply to you, creating a compliance checklist might be beneficial. For example, you will almost certainly be compelled to put both state and federal labour law posters prominently in the workplace. Having a list of the necessary notifications on hand will allow you to more quickly evaluate whether you need to take further steps to be compliant. If any of the activities are recurring, such as yearly notifications, make sure that someone on your team is in charge of maintaining a calendar and ensuring that the tasks are performed by the due dates.
Put together an employee handbook
While creating a complete employee handbook may take some effort at first, it can be a vital tool in your compliance toolbox.
A handbook not only provides your workers with useful information on their rights and benefits, but it may also assist to minimise the kind of misunderstandings that can sometimes lead to employee lawsuits.
Along with developing an employee handbook, you should also:
Make an updating schedule to ensure that the handbook accurately reflects your company’s current rules.
Each employee should sign a paper admitting receipt of the handbook and any future changes.
Conduct a self-audit for workplace discrimination.
As a wise company owner, you are well aware that discriminatory behaviours may expose you to potentially expensive employee claims.
Given that you most likely already have a lot of HR and employment procedures in place, a self-audit may assist guarantee you’re not venturing into discriminatory territory.
To begin an audit, determine the anti-discrimination laws and regulations that apply to your company. Title VII of the Civil Rights Act, for example, is a federal legislation that outlaws both racial and gender discrimination in all enterprises.
As previously stated, it is also critical to review state legislation. Gender identity rights are protected in certain states, for example.
Make use of an employment contract.
Whether you’re recruiting full-time employees or require someone to work for you on a part-time basis, an employment agreement or contract should always be used to legally formalise the employment connection.
A agreement like this may assist safeguard both your employees’ and your company’s rights.
By putting your employee’s work responsibilities in paper, you limit the risk of future uncertainty regarding the employment relationship. The more extensive the agreement, the more protection both parties will have.
Whether you utilise a customised employment agreement form or engage an attorney to design one for you, this is one business document you should never skip.
Keeping track of all the measures necessary to be in compliance with labour regulations is critical for the health of any small company. However, keeping compliant does not have to be a chore, and being proactive goes a long way toward mitigating the repercussions of noncompliance.