Employment Law Explained for Small Business Employers
Employment law lays down measures that regulate the duties and rights between employers and employees. It is also referred to as labour law in many countries. These laws are designed to keep the employees in a country safe and given a fair treatment. Despite this, laws are made to even protect the employers’ interests. In the United States of America, employment laws are derived from state and federal constitutions, administrative rules, legislations and judicial precedent. Contracts are
also present to govern the relationship between an employee and employer.
The United States employment laws can be backtracked to the industrial revolution within the country and the public outcries it brought with itself. In the beginning of the 20th century, the initial laws enacted were to provide compensation to the worker’s who were injured, to create a minimum wage cap, and to create a standardised time per week for work. Another significant law drafted was to put illegalise child labour. Later in the century, around late 1960s and early 1970s, the Congress further enacted laws to demote discrimination and create a safe work environment.
Most disputes under employment law is regarding the minimum salary cap and result in most of the litigation. Federal governmentof the US has established rules to deal with this issue, and state governments are allowed to pass laws to complement these provisions further. An example of this comes from several states that have an increased minimum wage than the $7.25 per hour set by the federal government. Hour and wage law also regulate paying workers who work overtime.
There are no limits as to the number of hours per week for adults however rules do exist that control the maximum hours as well as working conditions for workers under 18. Posting notices and keeping a record of these is mandatory for employers. Many of the employment law cases rise from the issue of discrimination in the workplace. Treatment of employees had been different based on ethnicity, gender, religious beliefs, age or disability but The Civil Rights Act of 1964 and similar subsequent legislation made such practices illegal.
In almost all the states in the US, there is a presumption by the law that it is upto the parties what they wish out of the employment relationships. Exercising a termination of the employment contract at any time and for any reason is up to the employer and employee. Certain clauses included in the employment contract indicating the exceptions on how the contract could be terminated legally would be sufficient to end this presumption. It would also help the matters to settle out of court when such exceptions apply.
Matters of public policy are most commonly found exceptions. This includes a bar on not terminating employment contracts for discriminatory reasons. Similar cannot be done as retaliation if an employee files a working compensation claim or complains about a violation of the law to the lawful authorities. A very few of the states have also prohibited the employers from terminating employment contracts in bad faith, like terminating a worker in order to avoid payment of bonuses or other contractually set benefits.
Employment law can be quite complex to understand and navigate properly in order for employers to stay compliant with state and federal laws. If your business has employment law related challenges, it is highly suggested that you consult with one or more employment lawyers who can best help your business remain compliant and not break any laws that could adversely affect the good standing of your company.
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