Relationships between businesses and their employees are governed by federal employment law and state regulations, which topics from wages to hiring practices. Many entrepreneurs, especially those going into business for the first time, are uncertain about their obligations and may inadvertently commit infractions that could result in substantial fines and legal action. Below are answers to common questions business owners may have about employment law.

Common Questions About Employment Law

What steps must businesses take when hiring new employees?

Ensure your screening practices do not violate federal anti-discrimination laws. The statutes protect applicants from bias based on factors like religious or ethnic background, country of origin, age, or disability status. Employers must also confirm every an employee’s work eligibility as part of the hiring process.

What laws cover wages and hours worked?

The Fair Labor Standards Act requires most employers to pay at least $7.25 per hour, with time-and-a-half for any hours over 40 worked in a week. However, your state or city may have higher minimum wage laws, and some classes of employees are exempt from overtime rules.

What is the difference between employees and independent contractors?

Because they work directly for their employer, regular employers enjoy greater legal protections, especially regarding discipline and termination. However, employers have more control over an employee’s activities. Independent contractors generally control how and when they perform work, but they must pay their own taxes and are generally ineligible for benefits.

Am I required to provide health insurance for my employees?

Federal law requires employers with more than 50 employees to provide health benefits or pay a fine when filing their taxes. Regardless of the business’s size, benefits must start within 90 days of an employee’s start date.

Since 1946, Zangari Cohn Cuthbertson Duhl & Grello P.C. has provided sophisticated legal solutions to business owners throughout Connecticut and Rhode Island. Their wide-ranging expertise covers a range of practice areas, from employment law to real estate transactions. Visit their website or call (203) 789-­0001 to schedule a consultation, and follow their Facebook for more advice and legal tips.