How to Abide by State Labor Laws
State labor laws can vary greatly. However, a business must abide by the laws in the state it operates in, or it can face a civil court and fines. Employers who willfully violate state labor laws can even face a criminal court and jail time. In most states, compliance with state labor laws is relatively uncomplicated if your business has already complied with federal laws.
- Difficulty:
- Easy
Instructions
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1
Do not hire employees who are ineligible for employment. According to federal law, employees must be either U.S. citizens or authorized to work in the U.S. Many state legislatures have passed laws creating even stiffer penalties for hiring unauthorized workers than the federal law enforces.
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Determine your state's minimum wage and other payroll requirements. Many states require employers to withhold wages for state income tax, among other laws related to payroll.
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Comply with state requirements regarding benefits that you must offer to your employees. Necessary benefits can differ, but may include items such as maternity leave, unemployment insurance or workers' compensation.
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Comply with any legislation specific to your type of business. Many states have enacted laws covering individual industries, especially those that are hazardous or subject to unusual abuse.
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Check with your state's department of labor to determine whether you are compliant with the state labor laws. Many states offer compliance assistance through the state website and offer special aid to small businesses to ensure their ability to abide by regulations.
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Tips & Warnings
The U.S. Department of Labor provides a list of state departments of labor and their contact information (see Resources below).
Many state labor departments offer newsletters or other publications to keep businesses up to date on changes in labor legislation.
State labor department officials often act as mediators in labor disputes.
In addition to differences between state laws, many cities and counties have localized requirements for employers. You may need to check with your municipality's office to determine whether you are subject to such laws.
If you do business in more than one state, you will need to abide by the labor laws of each state you operate in.
Definitions of an employee can change. Depending on your hiring practices, you may consider an individual a contractor, but because of your payment practices, your state may consider him an employee.
