Employment Law Overview

There comes a time in the life of almost every small business when it is necessary to get help--be it brain or brawn. The help most business owners often need initially is that of a bookkeeper or accountant who can handle taxes, billing and the like. Then, when things get a little hectic around the shop or office, the owner may hire someone to help with the shipping or errand running. If selling is not an owner's strong suit, he or she may engage the services of a salesperson or a manufacturer's representative. If the salesperson hired is talented, the business owner will soon have to hire more employees to keep up with the demand.

This section covers the following concerns for employers.

Types of workers
There are two main types of workers: employees and independent contractors. For tax purposes and to ensure compliance with federal laws, it is important you know the difference between the two.

Hiring employees
When hiring employees, you need to consider what kind of employee to hire, how to effectively hire the right employee and the legal requirements involved in hiring employees.

Employment contracts
You also must decide whether to have employees sign an employment contract and, if so, what terms the contract should include.

Employment policies
Employers can have any number of employment policies, covering topics such as dress codes, searches, drug tests, workplace violence, sexual harassment and disciplinary procedures. A personnel manual is a valuable tool for employers to keep employees informed of these policies.

Immigration
It is illegal for employers to hire individuals who are not authorized to work in the United States. There are certain procedures employers need to follow when hiring employees from other countries.

Wages and benefits
Setting wages and benefits are important parts of an employer's duties. Wages must match market standards. In addition, you need to be familiar with overtime and minimum wage requirements. Benefits an employer can offer include: leave time, health insurance, retirement plans, stock ownership plans, disability benefits and flexible benefit programs.

Performance evaluations
Conducting performance evaluations is necessary to let employees know how they are doing as well as to let you know how they are doing.

Workplace safety
If you work with hazardous materials, you need to be aware of workplace safety laws. In addition, there are special considerations when you have disabled employees.

Family and medical leave
The family and medical leave act requires employers to give 12 weeks unpaid leave to employees with serious medical or family emergencies.
Disability accommodations
Under the Americans with Disabilities Act, employers must give job applicants and employees with disabilities reasonable accommodations.

Sexual harassment
Employers must act to prevent sexual harassment. Having a sexual harassment policy is an important first step.

Workers' comp
Workers' comp law allows employees to collect money or to have time off when they are injured at work. Most employers are required to have workers' comp insurance.

Firing employees
If you need to fire employees, you need to make sure you aren't violating the employees' rights. In addition, you need to know how to face a fired employee's lawsuit.