Employment Laws for New Business Owners


Severity of knowing employment law before starting a business is similar to having a good amount of profit. Every owner should have knowledge of employment laws. Otherwise they may end up facing federal charges and other harsh incidents before starting their long run.

So, if you are a proud owner of new business or going to launch one, this article will give you a glimpse of employment law.

First of all, you must not classify all of your employees as exempt.

So, who are exempt employees?

They are the one who have fixed wage no matter how long they work. They are not subjected to overtime or meal break. Generally, the exempt employees of a business are the executive and other higher professionals. However, the non- exempt employees must have proper meal break and rest periods and may subject to overtime.

But many situations come where the owners forgot to differentiate between the position and ended up breaking one of the most crucial employment law.

The second important employment law is proper lunch break. Though this is not a requirement according to the federal laws, many states demand a 30 minute lunch break and necessary rest periods for the employees. Even in many cases, such as in California, a range of time has been fixed to have their meals. So, as you are a new one, make sure you have flexible resting periods.

Further, don’t ever push your employees to skip meals for going home early. By doing so, you will break the law.

The third most important law is the termination of contract with employees. The employer cannot fire his employees for taking medical or family leaves. They must be provided vacation or enough time so that they can practice their legal rights. Further, in your workplace, there should not be any kind of discrimination between age, gender, religion, race or disability. Firing your employees on basis of these subjects is illegal.

The fourth law, that I am gonna tell is about the time schedule of work. There are fixed state laws drawing line between working overtime with and without payments. So, please check out the laws of your state to retain you from paying overtimes with penalties.

Further, in many states like California, Connecticut and Maine, training on harassment and discrimination is must. You need to contact State Labour Office and provide the training to your employees especially to the first line managers. Though many states only advise for this training, I will suggest you to follow the law. It will ensure a beautiful working place in your office.

However, the last but not the least important employment law is about the non-compete agreement. According to the state law of California, it is absolutely forbidden for employers to make employees sign non-compete agreements. The employers may do so to protect the secrets of their company. But they can not force their staffs. Rather they can consult good lawyer in this manner.

So, before starting the business make sure you have at least read the law book one time. It will surely help you to have a success and avoid any unnecessary charges.

However here is a tips for you to have everything clear between you and the employees. That is have a workplace policy. Make a handbook and draft all the rules and regulations of your company considering the employment laws. It will draft a clear guidelines and any confusion about any system can be easily detailed.