Especially when a company has employees, proactive adherence to state and federal business laws is generally crucial for a company’s liability mitigation strategy and to its potential for success as a whole.
Violations of employment laws might lead to not just citations from regulatory agencies and difficulty recruiting the best workers but potentially also expensive lawsuits brought by the affected employees. These are three employment law regulations that are among the most likely to trigger penalties or lawsuits in modern America.
1. The Americans with Disabilities Act
It is surprisingly easy for a small business to run afoul of the Americans with Disabilities Act (ADA). This key piece of federal legislation created protections for workers with disabling medical conditions. Employers have to offer accessible facilities and also need to make reasonable accommodations to keep workers on the job when they have medical issues affecting their ability to do their job.
Employers who refuse to provide reasonable accommodations might find themselves facing claims that they discriminated against a worker. The courts might order them to both make changes to their facilities and pay expensive fines as well.
2. The Fair Labor Standards Act
There are numerous employment regulations included in the Fair Labor Standards Act (FLSA). The FSLA establishes the federal minimum wage and requires that employers track the number of hours an employee works. The FSLA entitles some workers to overtime wages and also has stipulations to prevent abusive child labor practices.
3. Title VII of the Civil Rights Act of 1964
The Civil Rights Act of 1964 helped level the economic playing field for people of all backgrounds. This groundbreaking piece of legislation made it illegal at the federal level to discriminate against specific workers because of their race, religion, sex, color and national origin.
Violations of any major labor law and state rules, like the requirement to carry workers’ compensation insurance, can lead to financial consequences and significant damage to an organization’s reputation. Proactively working with a business law attorney can help entrepreneurs and existing organizations effectively protect themselves from employment law claims brought by workers. Avoiding regulatory infractions that could lead to expensive litigation is a key element of modern business success.