Employment and Labor Law
Following are certain compliances under the labor law in the United States:
Wages and hours: The Fair Labor Standards Act prescribes the minimum standards of wages that must be paid to the employee. It includes regulations on minimum wage and overtime pay. This act applies to private as well as public organizations.
Workplace Safety: The Occupational Safety and Health Administration prescribes that employers provide a safe and secure workplace.
Equal Opportunity: Every employer with more than 20 employees must comply with the Age Discrimination in Employment Act of 1967. Under this Act, no age-based discrimination is allowed.
Citizenship of the workers: The federal government mandates that employers must check the citizenship of their workers. The workers must not be illegal immigrants. They must have proper documents to support their stay in the United States.
Family and medical leave: In case there are more than 50 employees, the Family and Medical Leave Act mandates the employer to provide 12 weeks of unpaid, job-protected leave. This leave is to be given only for the following:
For the birth of a child;
For the adoption of a child;
For serious sickness of the employer;
For serious sickness of the spouse, parent, or child of the employee.
Environment Regulations in the United States
The businesses cannot pollute the air, water, and noise where it is working. Therefore, there are many laws in the United States that prohibit to carry certain activities by businesses. Many businesses polluting in nature, like plastics, rubber, and so on, must take government clearance to start their business. The businesses must also submit regular updates on their environment pollution-reducing equipment.
The government authorities have the power to inspect the facilities of businesses like factories to know whether the business is complying with the rules or not.
Following are some other laws in brief:
The CAN-SPAM Act is applicable for email advertising and marketing. The business cannot send misleading and false headers.
Anti-trust laws have to be followed by certain companies. But this is usually applicable to big companies and not small companies.
Privacy: Many laws deal with data protection. The company must comply with these laws. The Health Insurance Portability and Accountability Act (HIPPA) is an example. It states that the hospitals and doctors cannot disclose or release the data on a personâ€™s health without the patientâ€™s permission.
Insurance: The employer must get workersâ€™ compensation insurance. This regulation applies to all the States in United States except Texas. The objective of the insurance is to compensate the employee in case he meets an accident while doing his job for the company.
Sometimes the regulations are too much for the business. The objective of prescribing regulations is to assist the stakeholders of the business. However, the excess of regulations hurts the ease of doing business in the country. It discourages entrepreneurs from doing business. Also, it adds up to the cost of the existing companies. If there are more regulations, more lawyers have to be hired by the companies, which adds up to the companyâ€™s cost, making it less profitable. The regulations must be there, but they must be simple to comply with.
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