Business Owners Should Think About Employment Law

Once an entrepreneur’s business becomes big enough to begin hiring employees, he or she should take care to ensure that the business complies with employment laws. For example, this article shows us five employment laws that entrepreneurs should not violate: “Do not label independent contractors as employees;” “Don’t use exempt classification to avoid overtime;” “You may not subtract loan payments from pay;” “Do not fire an employee for taking leave;” and “Do not refuse to pay employees for rest breaks.” (Article). The article also explains some of the consequences for violating these laws, including fines, penalties, and back wages. Id. Business owners should take care to follow these and other employment laws–creating a compliance strategy up front could come at the cost of hiring an attorney, but may prevent expensive litigation and penalties down the road.

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