Small Business Toolbox

A library of business management info


Labor Laws and Regulations

Federal labor laws and regulations affect every employer, no matter your size. Make sure you know what federal labor laws apply to you.

  • New Form I-9 in Effect
    07/02/2008
    The U.S. Citizenship and Immigration Services issued a new Form I-9 to verify employees' eligibility for employment. Employers must begin using the new form by Dec. 26. Previous versions of Form I-9, in English or Spanish, are no longer valid after Dec. 26, 2007. Employers who are still using the old forms after this date will be subject to applicable penalties and fines.
  • Family and Medical Leave Act Expanded for Military Families
    07/02/2008
    The recently expanded Family and Medical Leave Act provides two new types of military FMLA leave: Qualifying exigency leave and service member family leave.
  • Summertime Employment Help: What You Need to Know
    06/20/2008
    Every summer, many businesses look to bolster their workforce by hiring students on summer break. This can be a valuable opportunity for teens to not only get some hard-earned cash, but to learn important job skills. Instilling these skills in young workers helps ensure a quality workforce down the line. For employers, along with the benefits of the additional labor, teens today have increased spending power, and hiring them can help build consumer loyalty.
  • Dress Codes Do's and Don'ts
    05/16/2008
    Ah, summer time. Think warm sunny days, family vacations at the beach and comfy casual clothes. Unfortunately, the warm days of summer can wreak havoc on your company's dress code. Ensuring that employees are appropriately attired can be tricky enough, without throwing today's casual wear of tanks tops and flip-flops into the mix.
  • Protect Your Business Against Discrimination Claims
    04/28/2008
    Discrimination lawsuits are costly and time consuming. Hiring, termination, promotions, raises, job assignments and working conditions (including harassment) can all implicate discrimination laws. To avoid litigation you'll need to establish clear policies on hiring, working conditions and terminations.
  • New OSHA Rule Takes Effect
    04/18/2008
    Under a new OSHA rule that will take effect May 15, businesses will be responsible for providing most required personal protective equipment at no cost to their employees. At NFIB's urging, OSHA has excluded several common items from this requirement, however.
  • Age Bias and the Baby Boomers: An Expanding Problem
    03/10/2008
    Under the Civil Rights Act of 1964 and the Age Discrimination in Employment Act (ADEA) of 1967 and its amendments of 1986, it is illegal to discriminate in hiring, promotion, layoff, etc., because of age. So these federal laws have surely eliminated age discrimination from all aspects of employment, right? Wrong. Age discrimination in employment is alive and flourishing as never before.
  • Jury Duty 101: Your Requirements as a Small Business Owner
    02/15/2008
    There's no denying that jury duty presents challenges to both employers and employees. Thousands of Americans serve on juries every week and each one has family, employers and co-workers who are affected by their jury service. But jury service, like the right to vote, is one of those civic obligations that employers must allow and by virtue of some state laws is actually encouraged.
  • New Form I-9 Reduces Documentation Required for Employment Eligibility
    11/26/2007
    On Nov. 7, 2007, the U.S. Citizenship and Immigration Services issued a new Form I-9—the document all employers must complete to verify employees' employment eligibility. Employers should download the new form, note the form's changes (also discussed below) and begin using the new form immediately.
  • Show of Support
    11/09/2007
    November 11 took on storied meaning when the armistice ending World War I went into effect on the 11th hour of the 11th day of the 11th month of 1918. In the words of President Wilson, November 11 has since been a day to reflect "with solemn pride on the heroism of those who died in the country's service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of nations …"
  • NFIB Legal Foundation Offers Useful Legal Guides for Members
    10/26/2007
    With more than 75,000 pages of rules to keep track of, it's not surprising that many small-business owners don't know or understand the laws that apply to them. In its role as educator, the NFIB Legal Foundation continues to develop useful legal guides to help small-business owners navigate the increasingly complicated maze of federal laws and regulations. Additional information on the legal guides is found below; each of these guides is available as a benefit of membership for NFIB members.
  • Promoting a Drug-Free Workplace
    10/19/2007
    National Drug-Free Work Week 2007 was held Oct. 14-20, and employers and workers across the nation were encouraged to participate. The purpose of Drug-Free Work Week is to highlight the fact that being drug free is key to protecting workplace safety and encouraging workers with alcohol and drug problems to seek help.
  • How to Survive a Labor Union Organizing Campaign
    08/10/2007
    A labor union organizing campaign can mean a lot of stress and headaches for small-business owners. Owners, managers and supervisors are all under special obligations not to unduly interfere with an organizing effort. Failure to follow these rules could mean legal trouble with the National Labor Relations Board. Faced with these restrictions, it might seem like there's little you can do to fight a campaign. Not so. Employers can communicate to their employees the disadvantages of union membership, including the financial costs and potential for work-related loss from strikes or picket lines.
  • Small Business at the Court: A Review of the 2006-2007 Supreme Court Term
    07/20/2007
    The Supreme Court concluded its 2006-2007 term on a divisive note with a number of 5-4 decisions on issues related to free speech, abortion and affirmative action. Less polarizing for the justices was many of the Court's rulings on business issues. The Court upheld important restrictions on employment discrimination claims, punitive damages and union dues. Its rulings in the business arena represented important wins for NFIB, which offered support in three critical cases.
  • Know the Rules Before Hiring Young Workers
    06/29/2007
    Many businesses look forward to the end of the school year almost as much as students. Why? Because these companies see teenagers with three months of free time as a good match for summer job openings.
  • Finding the Best Summer Help
    06/15/2007
    Almost every industry has peak periods when some extra help around the office would be welcome. Fortunately, if that time of year is during the summer months, you may be able to forge a mutually beneficial relationship with some temporary help through either summer interns or teenage employees.
  • Understanding the New Federal Minimum Wage
    05/31/2007
    On May 25, 2007, President George W. Bush signed into law the Fair Minimum Wage Act of 2007. This legislation will raise the current minimum wage of $5.15 per hour to $7.25 per hour by July 2009, in three phases.
  • Protecting Employees' Social Security Numbers
    04/20/2007
    Identity theft is an ever-present danger to Americans across the country, since we all live in an increasingly digital world. This nightmare scenario requires, at the least, canceling accounts and repairing credit reports. Common sense counsels you to protect yourself by shredding bills and other documents before you throw anything away, but if you're a small-business owner, you must be equally as careful with employees' confidential information. Your employees' Social Security numbers are the penultimate example of information that must be kept under lock and key.
  • Independent Contractor Versus Employee: Nailing Down the Distinction
    04/12/2007
    One of the thorniest problems employers handle is accurately making the distinction between independent contractors and employees. While the difference may be clear in your own mind, the Internal Revenue Service applies complex criteria to the question, so you should be certain that your independent contractors meet the IRS's test before treating them as contractors. Above all, seek outside legal advice when making the initial decision and throughout the employment/contractor relationship when circumstances change.
  • Medical Leave: Reconciling FMLA Leave With the ADA
    03/15/2007
    Many small-business owners have less than 50 employees, and therefore, are not subject to the federal Family Medical Leave Act. Nevertheless, there may be other laws besides the FMLA to be considered, such as the Americans with Disabilities Act, before deciding to grant or deny requests for medical leave. To better understand the nuts and bolts of federal law, employers must break down the demands that arise from the intersection of the FMLA and the ADA, since both require a covered employee to be granted medical leave in certain circumstances.
  • Pre-Employment Tests
    02/15/2007
    Many employers use pre-employment tests to weed out unsuitable applicants. These tests may include skills tests, aptitude tests, psychological tests, personality tests, honesty tests, medical tests and drug tests. Both state and federal law impose numerous restrictions on what sort of testing is permitted. These restrictions are often vague and open to contradictory interpretations. As a result, you should only use tests that are absolutely necessary and, unless the test is as basic as a typing test, you should consider consulting with a lawyer before administering it.
  • Employee Rest Breaks: What's Required?
    01/19/2007
    It may come as a surprise, but the federal government does not have a law requiring business owners to give adult employees either rest periods or meal breaks during the workday. In fact, only 19 states specifically require rest or meal breaks for adults, while only seven states specifically require adult employees to be allowed a rest break and a meal break.
  • Providing References for Former Employees, Both Friends and Foes
    12/15/2006
    Employers today find themselves in the position of saying too little for fear of saying too much when it comes to providing references for former employees. Should you tell the truth and nothing but the truth whether good, bad or neutral? It may be surprising, but there is no right answer. As a former employer, you can generally say as much or as little as you like, as long as you do not knowingly provide false information. By definition, a reference allows you to disclose a significant amount of information about a former employee--but as with any business dealing, it pays to think before you speak.
  • Time Off to Vote
    11/01/2006
    As good employers, you want your employees to be active in the community, and part of that activism involves voting. Activating employees as members of the small-business community can mean taking simple steps like making sure they are all registered to vote, encouraging them to vote and ensuring that they understand which candidates support your business and industry.
  • Age Discrimination Is Still a Harsh Reality
    09/12/2006
    Unfortunately, age discrimination is alive and operating in most areas of American business. It potentially affects all older workers. Sometimes, it's a problem for older workers who have been steadily employed at the same jobs, but find themselves pushed out for a variety of "other" reasons. It's a significantly greater problem for those who seek to change jobs or find new employment following layoffs or retirement.
  • Formal Policies to Cover Your Business
    07/10/2006
    Policies are guidelines established to shape and influence behavior to ensure consistency and legality in conducting business and pursuing the goals of your organization. Policies become "formal" when they are committed to writing and published, usually in a manual form. Policies are essentially useless unless formalized. Certainly, "unwritten policies" exist, many of which might be fair and consistently observed; however, unwritten policies have no legal standing, so they are often useless and frequently hazardous. If a particular policy or practice doesn't exist in writing, it can be legally regarded as never existing at all.
  • Common Ways to Pay Your Employees
    06/21/2006
    Unless you are a volunteer organization, you have to pay your employees. The wage earned per year can basically be determined by one of three common methods: commission, hourly and salary. ("Salary" can refer to either the wage per year or the method of wage payment of paying a set amount per year.) Each type of pay has its benefits.
  • Advice on Finding Good Counsel
    06/12/2006
    Some type of law controls nearly every aspect of your small business. You must pay taxes because the Internal Revenue Code says you should, employees must earn a decent wage because Fair Labor laws demand it, and discrimination is unlawful since the Equal Employment Opportunity Commission's rules outlaw it.
  • OSHA's Standard Interpretation Letters
    06/01/2006
    If you have visited the Occupational Safety and Health Administration's Web site at www.osha.gov, you know that it includes a number of resources to help small businesses comply with workplace safety and health regulations. These resources range from pocket-sized Quick Cards to comprehensive eTools that provide detailed information on specific industries or workplace safety and health issues.
  • Good Question
    05/25/2006
    Can you ask a potential employee if he's ever had a heart attack? No, and small-business owners looking to cut health-care costs by screening potential hires for health problems during interviews ought to look elsewhere.
  • Youth Employment: Expanded Protections for Youth Working in Cooking, Roofing and Driving
    05/04/2006
    On Dec. 16, 2004, the Department of Labor’s Employment Standards Administration’s Wage and Hour Division published final regulations implementing changes to employment rules for youth. The final rules, which became effective on Feb. 14, 2005, expand protections for youth working in restaurant cooking, roofing, driving and other areas.
  • Overtime: Who Gets It?
    04/21/2006
    It’s been more than a year since the U.S. Department of Labor announced major revisions to the Fair Labor Standards Act (FLSA). The changes aimed to clarify which employees qualify for overtime pay as well as update dated terminology and job descriptions. Even with the new regulations, there is no denying that confusion still exists amongst employers and employees. And as employees’ job responsibilities are often subject to change, it’s a good idea to periodically review their job descriptions, and make sure that they are appropriately classified under the FLSA.
  • USERRA: New Rules Protect Military Service Members
    01/06/2006
    The U.S. Department of Labor has announced new regulations under the Uniformed Services Employment and Reemployment Rights Act of 1994, the federal law that governs military service members' workplace rights. The new regulations are intended to protect the rights of those who leave their civilian jobs voluntarily or involuntarily to serve in the military, including the military reserves and the National Guard.
  • What Activities Do You Have to Pay Employees For?
    12/29/2005
    Confused about whether you must pay your employees for breaks or lunch? What about vacations or jury duty? Or even overtime pay? The U.S. Department of Labor created a special Web tool to help employers understand which of an employee’s work-related activities are considered “hours worked”––and therefore hours for which they must be paid.
  • Understanding Revised Overtime Rules
    11/07/2005
    On Aug. 24, 2004, the U.S. Department of Labor revised the overtime exemption rules. The Fair Labor Standards Act classifies employees as either exempt or non-exempt. Non-exempt employees must receive an overtime wage for hours worked more than 40 per week. Previously, certain employees qualified for exemption from the FLSA overtime requirements, depending on their salary and job duties. However, the exemption rules were confusing, complex and outdated. The new FairPay regulations update the exemption classifications and grant certain employees greater overtime protections.
  • Small-Business Employment Law Guide
    11/03/2005
    A free publication from the U.S. Department of Labor helps small-business employers understand their rights and responsibilities under federal employment laws. The Employment Law Guide summarizes DOL’s most widely applicable laws.
  • Eliminating Age Discrimination and Bias
    10/31/2005
    The federal Age Discrimination in Employment Act of 1967 prohibits employers from discriminating against job applicants and employees because of age. This act pertains only to individuals 40 years or older and to employers with more than 20 employees.
  • Reviewing the Basics of Employment Eligibility Verification: Form I-9 Compliance
    10/21/2005
    Most small-business owners know that federal law requires employers to verify a new employee’s identity and eligibility to work on the federal I-9 form. While the I-9 form has changed little since 1991, questions still arise about its requirements.
  • Labor Rules for Young Workers
    08/22/2005
    Each year, millions of teens work part-time or take summer jobs. College students heading back to campus are also looking to make a buck or two while working toward their degrees. These working teens and students are gaining valuable work skills and contributing enthusiasm and eagerness to businesses across the country.
  • Age Discrimination Lawsuits
    04/08/2005
    Last week the Supreme Court issued an important decision regarding the Age Discrimination in Employment Act of 1967. In Smith v. City of Jackson, Miss., the Court ruled that persons who sue for age discrimination do not need to prove that an employer intentionally discriminated based on age.
  • Keep a Close Watch on Eye Health and Safety
    04/04/2005
    April is Women's Eye Health and Safety Month. And although you should take safety and health precautions into account every day, this is a perfect time to update safety policies, educate employees and celebrate your small business' health and safety – especially for something as precious as your sight.
  • Employers Must Notify Workers of Rights
    04/01/2005
    Effective March 10, the Department of Labor announced that all employers are required to notify employees of their rights under the Uniformed Services Employment and Reemployment Rights Act. The DOL has created a poster available to employers that contains all of the information they must disseminate to employees.
  • Legal Obligations to Your Employees in Uniform
    10/07/2004
    Members of the Guard and Reserve who stand ready to be called are working people holding down jobs and pursuing careers. It's likely that in recent years a significant percentage of businesses large and small have had some employees called to active duty in one essential capacity or another.
  • Have a Plan for Managing Workplace Safety
    09/24/2004
    Any successful entrepreneur would tell you that in order to start and grow a successful business, you need a business plan. Did you know the same is true for safety? If you want safety to be a priority in your business, you have to have a plan.
  • Is Your Business Ready for the New FLSA Overtime Rules?
    08/31/2004
    Steps you should take to ensure your business is in compliance with the new regulations.
  • Employee Records: How Long Do We Have to Save All This Paper?
    05/27/2004
    Many in business have asked the title question, often in frustration. Even in this electronic age businesses run on paper; consider how much information exists both electronically and in hard copy.
  • Unemployment Claims
    07/28/2003
    The following tips can help you prevent unemployment and keep unemployment claims from ruining your business's reputation.
  • Surviving a Department of Labor Audit
    07/24/2003
    If you have employees working at different rates of pay and on differing pay schedules, your business could be subject to an audit by the U.S. Department of Labor.
  • Common Misconceptions About Overtime
    11/27/2002
    Although most people who supervise the work of others are aware of the basic rules, many harbor one or more common misconceptions about overtime.