As a small business owner, you are responsible for all aspects of your business, including your employees (and the dreadful employment laws that follow). Employment law refers to the rules and regulations that govern the relationship between employers and employees. It’s important to understand these laws to avoid potential legal issues that can arise from noncompliance.
Here’s an overview of Employment Law 101 for small business owners.
- At-Will Employment
At-will employment is the default employment relationship in the United States. It means that either the employer or the employee can terminate the employment relationship at any time, with or without cause or notice. However, there are some exceptions to this rule. For example, employers cannot terminate employees based on discriminatory reasons such as race, gender, religion, or disability.
- Minimum Wage and Overtime
Under the Fair Labor Standards Act (FLSA), employers must pay their employees at least the federal minimum wage, which is currently $7.25 per hour. Additionally, employers must pay employees overtime at a rate of 1.5 times their regular rate of pay for any hours worked over 40 hours in a workweek. It’s important to note that some states have their own minimum wage laws, and employers must comply with the higher of the state or federal minimum wage. For instance, in Missouri, the minimum wage is $12.00 per hour, as of January 2023.
- Anti-Discrimination Laws
Employers cannot discriminate against employees based on certain protected characteristics such as race, gender, age, religion, or disability. It’s important to understand these laws to avoid potential discrimination claims from employees. Additionally, employers must provide reasonable accommodations for employees with disabilities to enable them to perform their job duties.
- Family and Medical Leave Act (FMLA)
The FMLA requires employers to provide up to 12 weeks of unpaid leave per year to eligible employees for certain family and medical reasons, such as the birth or adoption of a child, caring for a family member with a serious health condition, or when the employee is unable to work due to a serious health condition. Employers must also continue to provide health insurance benefits to employees during the leave.
- Workers’ Compensation
Workers’ compensation insurance is required in most states and provides benefits to employees who are injured or become ill as a result of their job. Employers must provide workers’ compensation coverage to their employees, and employees cannot waive their right to workers’ compensation benefits.
Employment law is a complex and an ever-evolving area of law. You must stay up to date on the latest laws and regulations. At Bounds Law, we can help you navigate the legal landscape and ensure that your business is in compliance with employment laws. Schedule an Employment Legalfluence Map Out Meeting HERE where we map out that landscape specifically for your business.
