Business Hiring Practices
Two legal issues that many companies have been faced, and continue to face, are overtime pay and workplace injury. The first issue involves companies refusing or failing to pay their employees for overtime work rendered; the second issue usually involves lawsuits filed by employees who sustain job-related injuries.
Starting a business requires careful and extensive planning. It should include the type of ownership (such as sole proprietorship, a partnership or a limited liability company), how to efficiently address and manage the many federal and local legal concerns associated with it, being clear about the particular service or good to offer, who will directly manage or run the business, how to hire the right people and how to make the company profitable and grow.
Some of the actual specific concerns one will be faced with when he/she starts a business would be compliance with state and federal laws on workplace safety, workers’ insurance benefits, company taxes and liabilities, employment contracts, business deal contracts, company debts, company policies and employee compensation and benefits.
With regard to employee compensation and workers’ insurance benefits, in particular, two laws that businesses will need to comply with are the Fair Labor Standards Act (FLSA) of 1938, also known as the Wages and Hours Bill, and the Workers’ Compensation Insurance program. FLSA is a decree on the lawful number of hours of work in a week, the national minimum wage, the required pay for overtime and the banning of the employment of minors for oppressive child labor. Workers’ Comp, on the other hand, refers to the financial benefits that workers, who sustain job-related injuries or who develop a job-related illness, are legally entitled to claim. More than paying overtime work, however, the bigger challenge and concern of employers is how to significantly reduce cost of Workers’ Compensation claims due to job-related injuries and illnesses. It is estimated that companies suffer losses of as big as $1.2 trillion annually due to health and productivity loss which result from work-related injuries.
While many companies continue to hurdle problems involving Workers’ Comp claims, there are those that have found an effective solution in significantly reducing cases of injuries and illnesses in the workplace – a significant reduction that translates to millions of company funds saved.
This solution involves functional employment testing firms which companies hire to help them solve major issues, which include poor employee performance or unproductivity, fast employee turnover, employee absenteeism and job-related injuries. In solving these issues, functional employment testing firms conduct a pre-employment capacity testing, which will ascertain that applicants possesses the right skills, work behavior and fitness required by the job they are applying for, and help companies create a legally compliant, and safe and healthy working environment.
Hiring the right people for the right job can lessen the need to render overtime work due to increased employee productivity; it can also result to reduced workplace injuries since those who will be hired are physically, emotionally and mentally for the job.
In their website, the Austin business attorneys share about the excitement associated with starting a business and the difficulties connected to it which is due to the special demands and unique factors that need to be addressed in order to make or keep the company successful. Addressing everything with the help of skilled and competent business attorneys, however, there are no legal challenges that cannot be handled and managed.