Category: Labor Law

Startups Can Prevent Trouble with Labor Laws If They Know How to Navigate Them

25 filling stations in New Jersey are being required by law to pay out over $2 million according to current reports. This payment becomes part of a wage settlement for Fair Labor Standards Act (FLSA) offenses. A series of investigations led to the settlement after the U.S. Department of Labor’s Wage and Hour Division discovered that these filling station stopped working to pay federal base pay and overtime to its employees.

Many times, employers breach these laws out of lack of knowledge rather than attempting to get away without paying employees. These employers lack an understanding of the country’s wage laws and inadvertently breach the law. Startup business run a remarkably high risk of violating federal laws due to their low funding. It is important for any company that will employ and maintain a group to make sure they have an extensive understanding of wage laws and other federal guidelines.

Fair Labor Standards Act

The federal law that manages minimum wage, overtime pay, record-keeping, and child labor requirements is called the Fair Labor Standards Act (FLSA). This law covers complete and part-time workers in private and public sectors and likewise acts as a standard for other state and city governments to follow. Ought to they choose, these federal governments can add their additional laws onto the FLSA.

The federal wage was set to $7.25 by the FLSA in 2009 for nonexempt employees. The FLSA likewise covers minimum pay for overtime employees, setting the rate at time and a half the regular per hour rate for any hours over 40 operated in a workweek. Some exceptions to the FLSA include, “Executive Exemption, Administrative Exemption and Expert Exemption. Plus, there is also a Computer system Expert exemption, which matters for IT workers and for that reason, frequently appropriate for start-ups,” lists Sergei Lemberg, Handling Lawyer at Lemberg Law.

They also do not control anything associated to the termination of workers: paying of last incomes immediately, providing workers with a discharge notification, or providing a factor for the discharge. Startups need to also know that getaway, sick, severance, holiday pay, fringe advantages and pay raises are not controlled by the FLSA either.

Equal Pay Act

The government needs all workers to receive equal pay. This means that while businesses are accountable for providing benefits, the kinds of pay, and the amount of getaway, the FLSA guarantees that along with imposing the minimum wage and overtime pay, it also makes sure that despite gender, staff members all receive equal pay for equal work. This takes place through the Equal Pay Act.

If there is a pay disparity in between 2 employees, the greater paid celebration can not be paid less. Instead, the employer must raise the salary of the lower paid worker. Companies should pay women and guys who complete the exact same jobs with the exact same effort, ability, and responsibility and in comparable working conditions, the exact same wage.

As females continue to speak out versus discrimination, sexism, and unwanted sexual advances in the office, companies require to now, more than ever, stand in support of pay equity. An expensive wage discrimination lawsuit can ruin a business’s image. Start-ups need to ensure they form a positive public image by illustrating to the neighborhood that they value their workers through a clear grasp of the labor laws.

Economic Realities Test

The difficulty of understanding and browsing labor laws is eased with resources like the Economics Realities Test. This test assists employers analyze whether their employees are workers or professionals to assist figure out if they are exempt from FLSA guidelines. Exemptions apply to professionals, administrators, executives, infotech employees, and quite frequently employed employees who work for a company. Numerous employed employees are exempt from overtime pay, for example, because their job rests on completing tasks, not working hours.

“One typical misperception, even among some legal representatives, is that employed workers are automatically exempt. This is not remedy; exemption is based upon task tasks,” states Lemberg. These misunderstandings are in part because of a recent switch from the Department of Labor. In 2015, the Department of Labor provided assistance noting that independent contractors were exempt from defense under the FLSA, but withdrawed that opinion in 2017 in favor of allowing courts to decide. Start-ups need to secure themselves by acquainting themselves with the FLSA for this really factor, and they need to seek counsel when problems develop.

Do You Actually Need New Labor Law Posters?

If you run an organisation and have staff members, there are a variety of federal and state labor law notifications you’re needed to publish where employees can see them every day. These are typically called labor law posters, or compliance posters. They include things like minimum wage laws, the federal USERRA, non-discrimination notifications, and more.

Staying up to date with whatever that should be posted and ensuring that the most existing notices are published in the work environment can be a genuine chore for big and small businesses alike. What’s more, publishing a collection of paper notices can make your office look unpleasant.
To resolve the issue, a variety of companies sell labor law posters that combine all the state and federal regulations on one or two posters.

The posters, in general, are an advantage. They clean up workplaces and assist businesses remain in compliance with labor laws. Regrettably, some of the companies that market labor law posters by mail use hard-sell marketing methods to get you to change your labor law posters prior to you truly require to. In fact, some of the marketing materials that get sent in mail seem rather deceptive and misleading.

One tactic that’s been utilized in various parts of the country is a mailing that has the word FINAL NOTICE in all uppercase on the top of the page of an official-looking document. Listed below the “Final Notice” headline was text stating that the company must comply with the brand-new labor publishing requirements and that failure to do so might lead to federal government fines of approximately $17,000 and other possible dire consequences.

Other methods include mail-merging the name of the recipient business into the letter and using text in the letter such as a Notice Number, Recommendation Number, and a Reply By date developed to make recipients believe the mail is in some way an official warning.

If your service gets a notice like that, make the effort to take a look at who it really comes from. If you see the words poster service, or compliance service, or if you see an out-of-state address, you can be sure the official-looking “Notice” is just a sales letter. Another dead giveaway: the letter will tell you how to purchase labor law posters from a private company.

If you’re uncertain when labor law notices you need to post were last changed, talk to the United States Department of Labor and your state labor department to discover if there have actually been any changes in needed postings. Keep in mind, too, that no matter what the labor law poster business inform you, you do not require to buy a new poster just because it’s a brand-new year. You just need to change your posters when the state or federal laws listed on them change.

The Basic Rights of Employees under the U.S. Labor Law

You finally landed a job in the United States of America. After days and months of searching and searching, you finally got one. And in the next few days, you will start everything. You will process your requirements for that desired position. Then you will kick off your first day at work. And you get to wonder what your experience will be in this new environment, how you will get along with your co-workers, and many more. Then comes an important thought—your basic rights as an employee. Here are five basic rights you need to know and these might help you feel secure as you go through your daily activities in this new work environment.


Discrimination is widespread in practically all parts of the world. However, an employee is protected from many forms of discrimination. In the United States, many laws are in place so that every person in the workplace gets to have a fair chance in the field. Discrimination because of skin color, sex, religion, race, and country of origin are all forbidden under the Civil Rights of 1964. Discrimination because of a person’s age is further added under Age Discrimination in Employment Act of 1967. If an employer is deciding for a certain job position, some corporate privileges, compensation package or giving a raise and promotions, this law aims to exclude age as a limiting factor. Another law is the ADA or Americans with Disabilities Act of 1990. A person who can do important tasks at work yet having a disability is protected by this law from being disqualified by an employer when applying for a job.

Fair Compensation

The employees should receive a minimum wage if his work is paid per hour and he is also entitled to overtime pay should he render overtime work along with the commission if there is any. Also, all of the hours spent at work by the employees should be reflected in their payslip. Fair compensation is protected under the Fair Labor Standards Act of 1938 or FLSA.

Employer Retaliation

The right against employer retaliation is also commonly called the ‘whistleblower protection’. This right protects the employee if for example he or she became involved in one of the protected activities such as defying sexual advancements, refusal of any activities resulting in discrimination, getting information about compensation to disclose discriminatory compensations, and talking about certain harassment to a manager or supervisor. The US Equal Employment Opportunity Commission or EEOC is the US agency in charge of this right and they impose certain violations. 

Sexual Harassment

Some examples of sexual harassment in the workplace are sexual and verbal conduct which obstruct one’s functions in the company, asking for sexual favors, and any unwanted sexual moves which result in intimidation or hostility. This right is protected by the Civil Rights Act and any violations are still under the scope of EEOC since any sexual harassment is also a type of discrimination. 

Safety in the Workplace

Safety is important. An employee should receive medical treatment and compensation if ever an accident or injury happens to him while doing his work. Moreover, that employee must have the same or a new job with the same compensation when he or she returns to work. The agency that imposes guidelines for proper training, for safety in the workplace and disclosure of any violations or unsafe working conditions is the Department of Labor’s Occupational Safety and Health Administration or OSHA. This right aims to protect employees from an unsafe working environment which often leads to injury, disabilities, and impairments or even untimely death. 

There we have the five basic rights of an employee under the US labor law that every employed individual must know. Knowing these will not only motivate us to fight for our rights, but to respect our colleague’s right as well.