| EMPLOYER - EMPLOYEE RELATIONSHIPS |
Employees make
or break a business. You should be familiar with the basic requirements that ensure good
relations and compliance with federal and state regulations. Your concern as an employer
should center around three basic needs:
- Keeping records about wages/salaries, injuries and illnesses;
- Complying with anti-discrimination requirements; and
- Complying with OSHA Standards - assuring safe and healthful working conditions.
Each of these issues is a major piece of legislation in itself. Each one is the subject
of both federal and state legislation. Don’t underestimate state legislation. Often
it is stricter than federal legislation and it puts additional obligations on you and your
business.
Beyond these three areas, you should be familiar with many other requirements. In
particular, you should be aware of the following subjects and distinctions:
- The difference between worker and employee;
- The difference between salaries and wages;
- Persons exempted from minimum wage/maximum hours requirements;
- The definition of overtime and its compensation;
- Child Labor Laws - employment of minors. Generally, minor refers to any person under the
age of 18; notwithstanding certain exemptions (employing family members) the minimum age
for hiring is age 16 or as low as 14 within certain very stringent limitations. The list
of prohibited occupations for minors is a major aspect of the various child labor laws.
This is most relevant in the areas of manufacturing, mining, restaurants and
entertainment;
- The Civil Rights Act of 1964 (applicable for any employer of 15 or more persons).
Massachusetts State Law applies to any employer of more than 5 employees;
- The Age Discrimination in Employment Act (applicable for employees between ages 40 and
70);
- The Americans With Disabilities Act;
- The Federal Unemployment Tax Act (unemployment compensation regulation);
- Workers’ Compensation Laws (covering financial benefits for employees with
work-related disabilities, illnesses or fatalities);
- Income Tax Laws (regulating computation and withholding procedures); and
- Social Security Tax Laws (regulating computation and withholding procedures).
As long as you operate inside this framework, you are free to make any employment
decisions. Of course, you know that the days of management tyranny are gone. Although
legal requirements are extensive, they leave many areas of the employer-employee
relationship untouched.
- As long as you don't discriminate, no one will interfere with your hiring and firing
procedures. Make sure you know the legal definition of discrimination as provided by the
various laws. It virtually covers all minority groups, not only racial minorities.
- Don’t operate in a vacuum. You may have competitors who treat their employees
better, foster a more pleasant work environment and/or offer better salaries. Then there
are the unwritten social laws of ethics, etiquettes and other norms and conventions an
employee might successfully appeal to should problems or litigation become imminent.
- Social security is a federal matter. Unemployment compensation is regulated by both
federal and state governments. You will have to check on the appropriate regulations for
each.
- Workers’ compensation, for the most part, is regulated on the state level. You
should check with the appropriate state agencies. In some states, for example, it’s
up to the individual employer to make arrangements with insurance companies. A group
insurance policy may be obtained from any private company that is authorized by the state
to provide such coverage. Do not forget to get this coverage. It is mandatory if you have
any employees and there are heavy fines for failure to obtain the insurance.
- Providing health care and life insurance is a strictly voluntary matter. For competitive
reasons, however, you might need to offer at least some coverage. In fact, many employers
do so. Since this is the domain of private insurance companies, it takes more than a few
pages or hours of work to come up with sensible answers. Rates and conditions vary and
numerous combinations between life and health coverage limits are available. Your sense or
social responsibility to provide these benefits will not, unfortunately, shield you from
bureaucratic headaches. Once you have opted to provide this type of insurance, many states
stipulate certain standards be maintained.
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