How Labor Laws Affect Your Business

Labor laws in the United States govern everything from who can form a union to the age at which a child can legally join the workforce. No matter what your political view on this type of legislation may be, every business owner must abide by labor laws or face the consequences. Here is what you need to know.

Most Important Labor Laws

The United States has more than 180 federal laws pertaining to workers and the workplace. Here are five of the most important ones:

  • National Labor Relations Act
  • Veterans’ Readjustment Assistance Act
  • Fair Labor Standards Act
  • Family and Medical Leave Act
  • Whistleblower Protection Program

Results of Breaking Labor Laws

The legal repercussions of non-compliance with labor laws range from large fines to jail time. For example, each violation of the Fair Labor Standards Act costs $10,000, with the possibility of imprisonment after a second offense. If a court finds you guilty of firing employees on illegal grounds, the law may require you to reimburse them for years of lost wages.

Don’t fall into the trap of inadvertently breaking labor laws out of ignorance. By surrounding your business with competent professionals such as human resource managers, legal advisors, and insurance agents, you will be sure to stay up-to-date on changing legislation.