Chugh, LLP – Attorneys & CPAs

When business owners think about expanding to the United States, they often think about which country to incorporate and whether to set up a subsidiary or register as a foreign corporation. They know that workers must have the legal right to work in the United States while being physically present in the US is a requirement for employment. However, one of the important points is to give equal weight to the consequences of labor law. Early awareness and compliance efforts are critical to reducing the risks associated with lawsuits, particularly those related to retaliation, discrimination, and other employment law violations.

Summary

Employers must comply with federal, state and local laws, with compliance obligations varying depending on the workplace. Although federal law establishes basic standards, employers must adhere to strict state or local laws that provide greater employee rights and protections.

Even for Federal laws, there is generally no general application of all laws to private employers. For example, the Fair Labor Standards Act (FLSA) applies if an employer engages in foreign trade or sales of at least $500,000.00. Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA) apply to employers with 15 or more employees. In addition, the Age Discrimination in Employment Act (ADEA) applies to employers with 20 or more employees, and the Family and Medical Leave Act of 1993 (FMLA) applies to employers with 50 employees or more, within a 75-mile radius of the workplace among others.

The Working Group

The Fair Labor Standards Act (FLSA) often mandates minimum wages, overtime pay, working conditions and so on. Employers may be considered. exempt or not exempt from the FLSA. This affects salary levels and rights to overtime pay. Exemption status usually applies if certain salary, job duties, and payment structure criteria are met. Exempt status means that the employee has the right to receive the minimum wage and overtime wages of 1.5 times the average hourly wage for more than 40 hours.

Low salary

While the federal minimum wage is $7.25/hr, compliance with state and local wage laws where the employee is located is important.

Paid Time

Federal law does not mandate paid time off in general, except in special cases such as government property contracts. However, many states and territories have enacted paid sick leave laws, and employers often provide paid time off for state holidays.

Unpaid Vacation

FMLA leave extends to 12 weeks within a 12-month period specified by the employer. However, up to 26 weeks of leave may be available in some cases. For example, if the employee is caring for a military family member or caring for a child, family member, or other health reasons.

Benefits

Employers are not required to provide the same rights and benefits to part-time or part-time employees as they provide to full-time employees.

Mandatory Reduction

Employers must withhold taxes and other mandatory deductions from employees’ wages, including federal, state and local taxes, as well as social security and Medicare taxes.

Termination

Most employment in the US is at-will, allowing either party to terminate the employment relationship without cause. Employers may be required to continue to provide health care services and provide notices under The Consolidated Omnibus Reconciliation Act, 1974 (COBRA) and the Employee Income Security Act, 19974 (ERISA). State laws may specify requirements for final salary and benefits received upon termination.

Employment Agreement and Employee Handbook

Employers should provide comprehensive employment agreements and employee handbooks that address working conditions, benefits, leave policies, legal obligations and dispute resolution procedures.

Employer Must

Important considerations for employers include completing Form I-9 for employment eligibility verification, completing W-4 form, obtaining approval for background checks, filing required notices , maintaining accurate records, and ensuring non-discriminatory hiring practices.

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