Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Different Legal Rules Every Entrepreneur Should Learn
Jul 18, 2022
Image source: Unsplash
As an entrepreneur, you're probably used to wearing a lot of hats. You're the CEO, the marketing director, the salesperson, and sometimes even the janitor. But one role you may not have considered is that of a legal expert. After all, as the business owner, it's up to you to make sure your company is operating within the law. But navigating the complex world of business law can be tricky - especially if you're not familiar with all the different rules that apply. That's why we've put together this handy guide to some of the most important legal rules every entrepreneur should know. So whether you're just starting out or you've been in business for years, read on for essential tips on how to stay legal and protect your company.
Work-Related Injuries
If you have employees, then you're required by law to provide workers' compensation insurance. This type of insurance covers medical expenses and lost wages for employees who are injured while on the job. In most states, workers' compensation is mandatory, so it's important to be familiar with the laws in your state. You can find out more about workers' compensation requirements from your state's department of labor. You can seek no cost legal advice in case of a work incident to know if you are being compensated justly. For example, an attorney specializing in workplace injuries can tell you if the insurance company is trying to take advantage of you.
Employee Discrimination
As an employer, you're also responsible for making sure your workplace is free from discrimination and harassment. It's illegal to discriminate against employees based on race, religion, gender, or national origin. This means you can't treat certain employees differently than others or make hiring and firing decisions based on these factors. You also can't require employees to disclose their religion or sexual orientation. If you're accused of discrimination, you could face costly lawsuits or fines from the Equal Employment Opportunity Commission. It's also important to create a policy that prohibits sexual harassment in the workplace.
Employee Privacy
You might not think twice about checking an employee's social media account, but you could be violating their privacy rights. In most states, employers are allowed to access employee email and social media accounts if they have a legitimate business reason for doing so. However, some states - like California - have laws that protect employees from having their social media accounts accessed by their employers. So before you start snooping, make sure you know the law in your state. For example, you might need to get written consent from the employee before you can access their social media account.
Paying Employees
Did you know that there are laws governing how and when you pay your employees? The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and child labor standards for employers. Under the FLSA, most employees must be paid at least the federal minimum wage of $7.25 per hour. Employees who work more than 40 hours in a week are also entitled to overtime pay, which is 1.5 times their regular hourly rate. And if you have employees who are under the age of 18, there are additional rules regarding the type of work they can do and the hours they can work.
Employing Foreigners
If you want to hire employees who are not citizens or permanent residents of the United States, you'll need to obtain a work visa. There are several different types of work visas, so it's important to choose the right one for your business needs.
See: Adjusting to the new Labour Market
For example, if you're hiring an employee from another country to work in your company's US office, you'll need to apply for a B-1 visa. If you want to bring an employee from another country to work on your company's behalf, you'll need an H-1B visa. The process of applying for a work visa can be complex, so it's important to consult with an immigration attorney before beginning the application process.
Terminating Contracts
There are also laws governing the termination of contracts. For example, if you have an employment contract with an employee, you can't just fire them without cause. You'll need to have a valid reason for terminating the contract, such as performance issues or misconduct. If you don't have a valid reason, you could be sued for breach of contract. So before you decide to terminate a contract, make sure you have a legal reason for doing so.
Image source: Unsplash
These are just a few of the different legal rules every entrepreneur should learn. Of course, this is not an exhaustive list, and you should always consult with an attorney to ensure you're in compliance with all applicable laws. But by familiarizing yourself with the basics, you can help reduce the risk of legal problems down the road.
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