Labor Law

Things to Consider Before You Hire Staff

Unless you plan to operate as a sole proprietor with no employees, you will need to hire staff. But before you hang a “help wanted” sign in the window or post a notice of positions available online, you should become acquainted with federal and state labor laws and learn how they apply directly to you and your business.

Federal Labor Laws

Employment Eligibility Verification Within three days of being hired, each new employee must complete Form I-9 from the Department of Homeland Security, U.S. Citizenship and Immigration Services, to verify his/her identity and eligibility to work in the United States. Go to www.uscis.gov for a downloadable form, instructions and a list of acceptable documents.

Fair Labor Standards This law applies to nearly all businesses in the U.S. and requires companies to pay at least the federal minimum wage of $7.25 per hour, and overtime pay of not less than one-and-one-half times the regular pay rate after 40 hours of work; restricts employment of children under age 16; and forbids employers from hiring children under age 18 for certain dangerous jobs. Check with the U.S. Department of Labor (www.dol.gov) for more information.

Occupational Safety and Health These laws require businesses to provide a safe workplace and, in many cases, to maintain records of job-related injuries and illnesses. Employers with 10 or fewer employees are exempt from most requirements, as are industries classified as low-hazard. Fines and penalties may be levied for non-compliance. Details are available from the U.S. Department of Labor at www.dol.gov.

The Americans with Disabilities Act prohibits employment discrimination against qualified individuals with disabilities and requires that public accommodations and commercial facilities be designed to comply with specified accessibility standards. All businesses offering access to customers and/or employing 15 or more workers must abide by ADA rules. Visit www.ada.gov for details and to get a copy of the “ADA Guide for Small Businesses.”

Family and Medical Leave Businesses employing 50 or more must give certain employees up to 12 weeks of unpaid, job-protected leave per year while preserving their health benefits during the period. Employees may take leave for the birth of a child; if they adopt a child or provide foster care; to care for a seriously ill spouse, child or parent; or if they personally suffer a serious health condition.

The U.S. Equal Employment Opportunity Commission enforces federal employment discrimination laws that protect civil rights and prohibit age discrimination.

Equal Pay This law applies to virtually all employers and prohibits wage discrimination between men and women performing substantially equal work within the same workplace.

Health Insurance Although the Affordable Care Act does not require businesses to provide health insurance, it does offer tax credits for eligible small businesses that choose to do so for the first time, or maintain the coverage they already have. Learn how this law affects your business and the qualifications for a small business health care credit at www.healthcare.gov or www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers.

State Labor Laws

New Hires Employers are required to complete a New Hire Reporting Form for every newly hired or rehired employee, full- or part-time, within 20 days.

Minimum Wage As of January 1, 2015, Florida’s minimum wage is $8.05 per hour; tipped employees who meet the eligibility requirements of the federal Fair Labor Standards Act receive $5.03 per hour in addition to tips.

Workers’ Compensation Employers with four or more employees (full-time or part-time) must carry workers’ compensation coverage for their employees. Different requirements apply for construction and agriculture.

Child Labor Workers under the age of 18 cannot work in hazardous occupations such as excavation, electrical work, roofing, mining, operating heavy machinery or moving vehicles, or around explosives, toxic or radioactive substances or dangerous equipment. Additional occupations are banned for children ages 14 and 15. Minors cannot work during school hours without an exemption.

Background Checks Private citizens or companies may request a state-only criminal history record check of an individual through the Florida Department of Law Enforcement website for a fee of $24 per case.

 

Records and Accounting

Tracking the Numbers

While you’ll probably want to depend on the advice of an accountant for preparation of taxes and important financial documents such as those required for commercial loan applications, you can easily keep simple records for your business using a pre-packaged manual or computerized business bookkeeping system, such as QuickBooks or Bookkeeper. At a minimum, you will need to keep account of gross receipts, purchases, expenses, assets and payroll.

Whichever record-keeping system you use, be sure it allows you to keep a close eye on your cash flow. The fact that your income statement shows a profit doesn’t necessarily mean you have the ready cash on hand to pay your bills. As you’re getting started in business, cash-flow statements and projections can help you control the flow of cash, determine your break-even point and make realistic plans for future expansions of inventory, facilities and staff.