By Kristi Lopez
As a business owner, you face many legal issues every day. And even though there are people who can help you understand and work with these, entrepreneurs need to have an idea of what they will encounter in their line of work. So that they can be prepared to act accordingly when the time comes.
The following are some examples of the most common legal issues that business owners may encounter when dealing with their employees. From hiring employees to regulations and practices that apply to everybody, such as non-compete clauses, these are some of the most important things every entrepreneur should keep in mind to avoid any unnecessary legal issues.
Personal Injury Liability
When you’re running a business, many things could potentially cause harm to your employees. For example, if they need to work with dangerous equipment or machinery, the risk of injury increases. Some businesses also require employees to do tasks that involve some type of physical strain or even exposure to risky environments. But unfortunately, it isn’t always possible for entrepreneurs to remove all the hazards from their workplace. This is why laws exist regarding personal injury liability.
What this means is that if one of your employees gets hurt doing something related to their job and it happens on your watch – you may be held responsible for any resulting financial loss. As explained by the workers’ compensation attorneys at wininjurynetwork.com, this includes both medical fees as well as lost wages if the employee is unable to return to work. However, for this law to apply – you must be the one responsible for the injury in question. The best way to avoid being held liable is to provide your employees with a safe workplace and ensure that they are trained to handle any possible hazards.
Worker Classification
This is one of the most common types of labor law violations. It refers to the tendency for employers to incorrectly classify an employee as self-employed, an independent contractor, or an intern. According to the federal laws regarding this action, you cannot allow employees to work for your company without receiving compensation for their labor whether in the form of salary or payment for services rendered.
Even if they are willing to accept some kind of benefit instead of cash pay – it doesn’t count because under the law you must provide minimum wage regardless of what kind of arrangement you have with your worker. In this case, consulting with legal counsel can be very helpful. They can explain to you what needs to take place for your business to function legally about labor law conditions.
Wage Compliance
The best way to avoid violations when it comes to this topic is by ensuring that all employers meet specific guidelines and follow proper procedures related to your business’s payroll system. For example, one common mistake that business owners make is deducting money from an employee’s wage without their prior authorization. The only time you can do this is when it complies with a state or local law where you’re operating your business.
This also applies when it comes to withholding taxes and payment towards other debts that may be linked to the employee. For example, if they have outstanding loans or obligations with a third-party entity, then these can legally be deducted from their salary as well. While not complying could lead to significant legal issues for your company – failing to do so would make you expose yourself to potential lawsuits by disgruntled employees over unpaid wages.
Union Rights
Today, many companies are choosing to hire freelance or part-time workers over full-time employees. While this might save you money at first – it can become problematic if your company is ever confronted by a labor union because of this choice. If they successfully file a grievance against your business – then all of your workers could end up losing their job no matter how they are classified.
The best way to avoid this is by avoiding making any full-time employees unhappy or stressed out at work because their employment status affects that of your entire company. However, the only time this type of action will be considered illegal is when you take it against someone who has represented themselves as a permanent employee of yours or when it results in the termination of this individual.
The best way to avoid legal issues related to labor law is by hiring a skilled attorney who can help you set up your business in a way that guarantees worker satisfaction and compliance with all of the most important aspects of federal laws. They will also have experience dealing with professionals in the field so they can help resolve any problems before they ever get out of hand. So if you own a business and don’t have a great labor law attorney on your side – you should consider hiring one soon.
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Source: Labour Law and Business: How Entrepreneurs Can Avoid Most Common Legal Pitfalls
Category: Business, Labour Law
