|If you have read George Orwell's
book 1984, you'll remember that the main theme is about Big Brother
watching you and about rules and regulations. Well our societies
"Big Brother" is government at all levels from federal to state to
local. While it's difficult to keep up with all the ins and outs, a
basic familiarity with these rules, laws, and regulations is needed
by most small business owners.
areas do some of these payroll related laws cover ?
- In prior lessons, we covered
Social Security and Medicare that employees and employers are
required to provide and/or participate in order to receive future
medical and retirement benefits. In addition, we covered
Self-Employment taxes that apply to certain types of business
organization owners. These programs are governed by federal
- Employment Discrimination laws
purpose is prevent discrimination between individuals based on race
, religion, sex, age, disabilities, or national origin. Federal and
state law compose the main body of employment discrimination law.
Most of us are familiar with The Equal Pay Act that basically
prohibits paying different wages to individuals performing the same
- Another law administered by
federal (Fair Labor Standards Act) and state laws that we are also
familiar with is the Minimum Wage Law that prohibits employers from
paying employees less than this minimum rate per hour worked. The
Fair Labor Standards Act is the federal statute that provides for a
minimum wage and the payment of overtime. Many states also have
labor laws pertaining to the payment of wages. State statutes may
even provide greater employee protection than the federal law.
Employers must be aware of not only federal labor laws but also any
state laws. If state and federal laws differ, the law that provides
the greater benefit to the employee is usually the law that
- The Family and Medical Leave Act
(FMLA) requires all employers with at least fifty workers to allow
qualified employees time off for attending to personal matters such
as the birth or adoption of a child or caring for a spouse, child,
or parent with a serious health problem.
- Unemployment insurance provide
terminated workers with temporary benefits to help soften the loss
of the earnings from their job and provide them time to find
another similar job.
- Federal and State Workers'
Compensation laws are provided to provide benefits and awards to
employees and/or dependents for employees who are injured, killed,
or disabled on the job.
- The main statute protecting the
health and safety of workers is the Occupational and Safety Health
Act (OSHA). Federal and State workplace safety and health laws are
designed to have employers provide a safe work environment for
their employees in order to eliminate injuries and illnesses from
occurring in the workplace.
- Pensions are governed primarily
by federal law. In order to encourage employers to provide pension
plans that follow congressional guideline and law such as the
Employment Retirement Income Security Act (ERISA) tax breaks are
provided to employers who follow the guidelines.
- Although we don't hear much about
unions anymore, they still represent an area that many employers
still must deal with. The main body of law governing collective
bargaining is the National Labor Relations Act (NLRA). This law
grants employees the right to collectively bargain and join trade
||I know laws, rules, and
regulations are a pain in the butt. Even so, we need to know about
them and apply them to our business where applicable. This lesson
provided you with a brief overview of some of the main employment
laws and regulations that might pertain to your