Business Laws Owners and Managers Should Know
Laws for Businesses with Over 100 Employees
For your business to remain compliant, there are vital laws for employers that must be followed. If your business has over 100 employees, you must comply with these fundamental laws and regulations or face extreme consequences. Take a look at these commonly-cited laws and how they have the potential to impact your business.
Employment laws may lay out specific terms of employment for protected classes.
Title VII of the Civil Rights Act of 1964
Title VII is a popularly-referenced act prohibiting discrimination based on any protected class, including race, color, religion, sex, and national origin.
The Americans with Disabilities Act (ADA)
The ADA establishes strict guidelines for businesses to employ or work with people with disabilities. Not only does the ADA require accessible design standards, but it also lays out requirements for what reasonable aids and services a business may need to provide for employees with disabilities.
Age Discrimination in Employment Act (ADEA)
The ADEA prohibits discrimination against employees over 40 in hiring, promotion, discharge, or compensation for employment. It also notes that employers cannot have different terms for employees over 40 than they do for younger employees.
Fair Labor Standards Act (FLSA)
The FLSA establishes:
- Minimum wage
- Overtime requirements
- What hours count as hours worked
- Record-keeping requirements
- Child labor laws
Family and Medical Leave Act (FMLA)
FMLA allows up to 12 work weeks of leave for employees following the birth of a child, the placement of a child for adoption or foster care, or caring for family members with serious medical needs. It allows up to 26 work weeks of leave to care for a covered service member in case of a relevant illness or injury.
Health and Safety Laws
Health and safety laws help offer protection for employees on the job.
Occupational Safety and Health Act (OSHA)
OSHA lays out clear standards employers must follow to provide a safe workplace for their workers.
Workers' Compensation Laws
Workers' compensation laws, which vary by state, layout workers' right to compensation, including payment for medical costs and financial support equal to around 2/3 of the employee's wage, for employees who suffer injuries at work.
Affordable Care Act (ACA)
The ACA helps make health insurance more affordable to as many people as possible. It also governs when employers may need to offer health insurance.
Tax laws may help determine your business's responsibility when paying taxes.
Federal Income Tax
Businesses, as well as employees, must pay a federal income tax. These tax rates increase as income increases. Employers must understand federal income taxes and withholding for employees and the business.
State Income Tax
Most states have income taxes, which employers may need to take out of their employees' paychecks. Failure to pay those state taxes on time can result in significant financial penalties to the business.
Social Security and Medicare Taxes
In addition to federal income taxes, employers must be in compliance with laws regarding Social Security and Medicare taxes, which will need to be taken out of employees' paychecks.
Unemployment Insurance Tax
Unemployment insurance tax ensures employees can procure unemployment if laid off for covered reasons.
Privacy laws help protect employees' overall right to privacy and govern what information employers can share. Privacy laws may also govern what information can be collected and shared about customers.
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA protects against sharing private health information. It also ensures that individuals have the right to control how their health information is used.
Federal Trade Commission Act (FTC)
The FTC establishes consumer protection laws against fraud and unfair business practices that could pose a danger to customers.
General Data Protection Regulation (GDPR)
GDPR is a European act that establishes data protection laws and security requirements across Europe.
Immigration laws help govern how employers work with immigrants.
Immigration Reform and Control Act (IRCA)
IRCA requires employers to verify their employees' identities and establish employment eligibility.
H-1B Visa Program
The H1-B Visa Program allows employers to hire specialty workers from outside the United States, even when those workers have no intention of immigrating.
Get Help Meeting Essential Compliance Standards
There is a wide range of employment laws, requirements, and regulations that employers must take into consideration when hiring, managing employees, and more. Failure to meet those essential regulations can lead to significant fines and penalties for the business. At PRO Resources, we can help ensure compliance, review policies, and procedures, and help your company avoid those costly fines and limitations. Reach out to PRO Resources to start a conversation about reducing risk and improving compliance.