5 Compliance Challenges Listed By Labor Law Consultants

5 Compliance Challenges Listed By Labor Law Consultants

Running a business involves monitoring multiple aspects at the same time to ensure that the enterprise remains profitable and also remains compliant with all applicable regulations. Labor law is a critical issue requiring careful handling for the whole duration an employee stays at an organization to ensure that no rules are violated. Right from hiring personnel to allocating their benefits, each and every aspect of employee management is controlled by government regulations. Enterprises hire employment law consultants to get advice on the matter but even then get caught up in some issues. Let’s take a look some major challenges faced by labor law consultants while discharging their duties at a corporation.

1. Employee Classification Can Be Confusing

Employee classification can be quite challenging for business owners and it is vital to know how staff members must be categorized as exempt and non-exempt. Making assumptions to do the classification is the wrong approach and must be discarded immediately. The duties and responsibilities of the individual along with the pay rate are the factors that help in determining the category in which a worker falls. The best experts around the world including labor law consultants in India advise that owners must take employee classification seriously to avoid legal hassles.

2. Knowing The Rates According To Wage And Hour Laws

Minimum wage and overtime considerations are fixed under federal wage and hour laws which all enterprises have to follow. The issue becomes complex for a labor law consultant because each state has fixed its own rates and also included requirements in the law. A business owner running operations in multiple jurisdictions must know about the applicable rates and other compliance requirements in each of them. Authorities in many jurisdictions are also including provisions for salary history bans and predictable scheduling which also must be known to an employer.

3. Mental Health And Medical Claims For Emotional Issues

Differently abled members of the workforce are entitled to some accommodations as stipulated by the law. Employers know about their responsibilities in this regard but they are facing a new kind of challenge. Many people are invoking the law for claiming compensation for an emotional or other mental health issues which was not paid by the employer. This is a very complicated issue as made evident by the legalization of marijuana in some states. All organizations strictly prohibit drug usage but when an employee with permission for medical marijuana approaches them for compensation, they are caught in a bind. Labour law consultants advise that the complexities involved in this issue make it essential for enterprises to treat each case according to its merit and do not adopt a one-size-fits-all-approach.

4. Employment At Will Must Not Be Misused

One of the most misinterpreted laws, many entrepreneurs wrongly assume that employment at will empowers them to fire a staff member at any time without any reason. Terminating an employee without any valid reason can lead to grave legal repercussions and business owners must make efforts to avoid them. A staff member belonging to a protected class based on gender, religion, nationality or sexual orientation can claim damages against wrongful termination. Companies must maintain proper records related to all personnel which includes their performance details as they will come in handy while representing their case.

5. Doing Criminal Background Check Of A Job Applicant

Many states have enforced laws that bar corporations from asking prospective employees about their criminal history. Employers cannot request job applicants to furnish details about prior arrests or convictions. The motive behind framing this law is to ensure that organizations make unbiased selections and easy rehabilitation of reformed individuals with a criminal background. Entrepreneurs must know whether their company falls under the purview of the law or not and devise their job application forms accordingly.


Labour law consultants advise that entrepreneurs must know about all applicable laws in the jurisdiction they operate in and must make efforts to learn about any changes made to existing regulations. A failure to do so will result in legal troubles as well as financial losses.

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