Are You Lost in the Growing Maze of Employment Laws?

by Natalie Gibbs,  Human Resources Coordinator

Staying in compliance with governmental regulations has become extremely difficult for employers. Currently there are over 30 employment laws that directly affect employers. To properly comply with all of these laws, most companies would need to hire a full-time human resources manager. For most small companies, this is just not feasible. So small business owners have to take time away from growing and running their businesses to try to learn about the complexities of the law. Many times they just decide to take their chances and hope that the Department of Labor or INS won’t audit them. In the next few paragraphs, I’ll briefly discuss some of the laws that give employers the biggest headaches.

The Immigration Reform and Control Act (IRCA) requires that all employers must complete Federal Form I-9 for each of their employees to prove their identity and eligibility to work in the United States. An employer has 3 business days after hiring an individual to complete the verification process. Employers that do not obtain properly completed I-9’s for each of their employees are subject to fines up to $1,000 per employee.

Another law that affects employers is the Fair Credit Reporting Act (FCRA). This law states that an employer must obtain the written consent of an applicant before they conduct background and credit checks as part of hiring process. Also, if the applicant is not hired as a result of the information in the report, the employer must notify the applicant of the reason and provide him or her with a copy of the report.

The Americans with Disabilities Act (ADA) prohibits employers from discriminating against "qualified" individuals who have disabilities who are able to perform the essential functions of a job, with or without reasonable accommodation. Having accurate, written job descriptions for each position in a company provides great protection for employers when dealing with the ADA. Job descriptions allow applicants to know exactly what functions must be performed in a particular job. Employers must, on a case-by-case basis, determine what constitutes a reasonable accommodation.

One of the most complicated acts that employers must deal with is the Family Medical Leave Act (FMLA). Under this act, employees are entitled to 12 weeks of unpaid, job-protected leave. To be eligible for leave, employees must have worked for the company at least 12 months and have worked at least 1,250 hours during that time. Leave may be taken for the birth or adoption of a child or for the serious medical condition of the employee or the employee’s spouse, child or parent. Employees must be returned to the same or an equivalent position at the end of their leave.

The state of Mississippi also requires that all employers with business operations in the state submit New Hire Reports. These reports must be submitted within 15 days of the employee’s first day on the job or within 15 days of the rehiring of an employee. Employers who fail to report new hire information are subject to fines up to $500.

Employers must also be aware of postings that are required by law. These postings specify employees’ rights under Equal Employment Opportunity, the Occupational Safety and Health Act, the Fair Labor Standards Act, the Family Medical Leave Act, and the Employee Polygraph Protection Act. Workers Compensation and Unemployment Insurance postings are also required by the state of Mississippi. An employer who is found to be without these posters can be subject to fines up to $7,500.

The laws mentioned above are just a few of the complex list of laws affecting employers. If you are feeling a little lost in the maze of employment laws, please contact AmFed Employer Services about being your "guide."

Natalie Gibbs is the Human Resources Coordinator for AmFed Employer Services, LLC, a Professional Employer Organization. A PEO provides for the outsourcing of administrative tasks such as human resources administration, employee benefits administration, worker's compensation coverage and risk management, and payroll and tax administration. Call today to obtain a free PEO analysis for your company at 601-853-4949 or visit our web-site at www.AmFed.com.

*The information provided in this article is the opinion of the author and should not be considered legal advice.