3 Common Labor Law Violations In The United States

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Running a business can be extremely lucrative if given the right conditions – and in the same breath, it’s also one of the most expensive things a person can do. It’s no wonder that because of this, some business owners try to find workarounds to save some money.

Unfortunately, a lot of these workarounds are law violations. Here are three of the most common violations that you should avoid. If you’re already committing any of them, put a stop to it before you and your business get busted.

1- Disregarding Employee Safety

This violation is a big one because it can put people’s lives in danger. It would be best if you didn’t cut corners when it comes to safety. The Occupational Safety and Health Act exists to ensure that employees aren’t put at risk. Disregarding it can lead to lawsuits, penalties, and possibly loss of life.

On this same line, if an employee gets injured on the job, it may be your business’s responsibility to cover it. Most states require some workers’ compensation insurance to cover any accidents that happen on the job. If not, your company will still have to cover everything ranging from medical fees, rehabilitation fees, and loss of wages due to being off work. If you try to get out of paying these, your company may get sued, and will more than likely get fined.

2- Not Paying Enough

Your employees put in the hours that it takes for your company to survive. If you pay them under minimum wage or refuse to pay overtime correctly, you’re breaking the law. There’s no trying to work around this to get out of trouble. Some companies try moving overtime into the next pay period, or paying it out under the table to avoid paying the full amount – this is illegal. If you decide to cut your payments, employees are likely to complain.

Although some jobs in America can get paid under minimum wages, like waitressing or bartending, know that underpaying any other employee will result in more fees and fines. It’s cheaper, in the long run, to pay employees the correct amount. If you’re not sure what the right amount is, look into an economic consulting business to find out what’s necessary.

3- Trying To Find Loopholes

Many companies will try to pull many tricks to work around the law. A common one is to hire someone on as a salaried worker when their work wouldn’t get classified as that. This way, companies try to work around overtime, since salaried workers don’t get paid for it. This violation shortchanges workers by giving them small salaries and working them to the bone – this is illegal. The only employees that should get considered for salaried wages are teachers, doctors, and other types of professionals.

Other loopholes include misclassifying employees as private contractors to avoid taxes, cracking down against unionizing employees and underpaying disabled workers. With fees and lawsuits, you’d be throwing money away by trying to get away with any of these.