Employment Law - When it Pays to Outsource

Employment law takes account of nearly every area of the employer/employee relationship. The only exceptions are related to collective bargaining. That leaves many areas like workers’ compensation, minimum wage regulations, employment discrimination, workplace safety, whistleblower protections, and unemployment compensation in the list of topics covered by employment law. For the small businessman, that is a lot to deal with. Unfortunately, this is one of those times when the old adage, "what you don't know can't hurt you" will probably let you down sooner or later.

To complicate things further, it's not just one set of laws the business owner has to deal with, there are regulations at both the federal and the state levels and many localities add on a few more of their own. Instead of ignorance being bliss, it is a snare for lawsuits, fines, and penalties.

Some examples:
• The Family Medical Leave Act (FMLA) To quote the US Department of Labor, "FMLA provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave." Having an employee take family medical leave involves record keeping and paperwork, some of which is supposed to remain confidential.
• The Fair Labor Standards Act (FLSA) This law regulates the standards for the basic minimum wage and overtime pay, and regulates the hours that a minor is allowed to work. That's more recordkeeping and more paperwork tracking the hours worked and the wages paid.
• The Immigration and Nationality Act (INA) Quoting the US Department of Labor again, "INA sets forth the conditions for the temporary and permanent employment of aliens in the United States and includes provisions that address employment eligibility and employment verification." You might need forms for application for H-1B and H-1B1 Non-immigrants (form ETA-9035), the Application for Permanent Employment Certification (form ETA-9089), the Application for Alien Employment Certification (form ETA-750A), and Part B of this application: Statement of Qualifications of the Alien (form ETA-750B), and the Application for Alien Employment Certification for Agricultural services (form ETA-790). Employers certified for H-2A contracts must keep records of a worker's hours.

Small business owners who find it more profitable to work on their company than to fill out forms will like the services of a PEO. Helping employers stay in compliance with employment law is only one of the services a PEO can give.