Employment Law is a broad field that covers local, state and federal regulations. Employment lawyers protect both employers and employees from violations and lawsuits.
Whether it’s related to discrimination, harassment or financial compensation, most employment disputes end up in a courtroom. An experienced labor lawyer can help you navigate this process.
Misclassification of Employees
Employee misclassification happens when a business treats a worker as an independent contractor rather than as an employee. It’s illegal and carries major penalties for businesses. Depending on the local law, misclassification can lead to back taxes, fines and restrictions on your business going forward.
Regulatory authorities clamp down on misclassification because it amounts to tax evasion and deprives workers of fundamental labor rights. Landscapers, truck drivers, home health aides and janitors are among the most common jobs misclassified. These occupations tend to have low annual earnings, and the misclassification of these workers reduces their economic security.
Additionally, in most countries, employers must make a range of compulsory payments towards employee benefits such as workplace compensation and health insurance. When a business misclassifies these workers, the governing agency loses out on this revenue. This may put a strain on state budgets and cause public services to suffer. If you believe an employer is misclassifying employees, contact your local government for details on how to report it.
Contracts and Agreements
An effective contract can protect your organization and your employees by setting terms for employment. It can establish the basic job duties and responsibilities of an employee; set the salary, compensation and incentive pay; and define what will constitute cause for termination. It can also protect proprietary information by including confidentiality and non-competition clauses.
If your organization plans to terminate an employee without cause, the contract should stipulate the amount of notice required. This will ensure that the employer has sufficient time to hire a new employee and to minimize disruptions in business.
It can also include provisions for reimbursing certain expenses and the process that must be followed to get reimbursed. For highly-skilled and compensated employees, you might want to include post employment restrictive covenants so that they cannot compete with your business or solicit client lists after leaving the company. An employment law specialist can advise you on whether these clauses are enforceable.
Company Policies
Company policies are guidelines for employees to follow in the workplace. They establish rules in areas such as workplace safety, communication, tea and lunch breaks, mobile phones for personal use and more. They also help create a structured and respectful work environment. However, they are not legally binding.
Most policies protect the interests of both employers and employees, striking a balance between their needs. For example, a disciplinary policy shows that a company treats all employees fairly and with respect by setting standardized, step-by-step processes for dealing with employee misconduct.
Developing and implementing policy statements requires careful consideration of the workplace, involving employees in the process, and consulting with legal experts. An effective policy statement will reduce risk and ensure compliance with US labor laws. It should be incorporated into an employee handbook and distributed to all employees, making sure they understand what is expected of them. Factorial offers an all-in-one software solution that lets you design your company policies and distribute them to employees in a centralized, easily accessible format.Employment Law advice
