Even if you employ just a few individuals, it is imperative that you comply with all applicable law governing employer-employee relationships. In several situations, both federal and state law may apply. In fact, municipal ordinances could affect some of your practices related to wage and hours law. Here are some important issues that employers should be aware of.
Calculate Wages Correctly
Familiarize yourself with local rules pertaining to how you pay employees. The distinction between being hourly and salaried could have a significant impact on pay rates. To ensure that you are paying people correctly, verify that you are calculating overtime hours properly for nonsalaried workers.
Pay stubs need to accurately reflect the hours that employees clock in for work. If you need assistance with payroll services state College PA, establish a relationship with provider who has experience serving clients in your area.
Conduct Your Hiring Process Carefully
Believe it or not, it is possible to run afoul of both federal and statutory law before the employer-employee relationship even begins. You need to screen job applicants with scrutiny but also treat them with consistency. Avoid asking prohibited questions during interviews that could cause applicants to believe that you discriminated against them.
Categorize Independent Contractors Fairly
In general, a person is an independent contractor only if he or she provides a specialized service and is not under the direct control of an employer. Getting this classification wrong could expose employers to liability.
Employment law violations can be costly for small businesses. Settling a claim or having to pay a judicial award could seriously hurt a small enterprise’s financial standing. Also, you could be subject to civil penalties in some situations. Make sure that your employment activities are consistent with best practices, and seek out professional guidance whenever you are unsure about the best way to adhere to important regulations.