As a business owner, maintaining quality and dependability is at the top of your priorities. You want your business to continue to thrive. To maintain a level of excellence, certain legalities must be followed.

Understand State and Federal Labor Law

As an employer, you must be willing to adhere to all state and federal labor laws. Failure to do so will result in legal consequences. According to The Balance, understanding of labor laws ranges from fair pay compensation, hiring and firing, discrimination protection, and so much more.

While there are many aspects of the law to be familiar with, it is also your responsibility to communicate with your employees their rights with regards to the law. Doing so will enable a clear line of communication between employee and employer which limits the occasion for conflict and breach of federal or state laws.

Compensate Employees Fairly

In accordance with labor laws is workers’ compensation insurance, commonly referred to as “workers comp”. According to Lucy S. McAllister, every business owner that hires employees must maintain workers’ compensation insurance. This form of insurance protects the employee with wages and medical benefits should they be injured in the course of their employment.

When provided, workers’ comp also protects your business as it relinquishes an employee’s right to sue on grounds of negligence. Initial insurance costs may not be enticing, but they will always prove less expensive than a potential legal battle should anything happen to your employees.

Perform Background Checks

To protect your business and the safety of other employees, according to Business News Daily, it is always a good idea to run a background check on a prospective employee. If a prospective employee has a record, no matter how insignificant or in the past, it is better to know the risk you are taking with hiring them.

Even something as simple as a history of speeding tickets or a DUI can say a lot about the character of an applicant. How reckless or dependable will they be? How much liability do you assume if you hire them? Not every individual with a background will be a burden, but it is a valuable thing to know when looking to hire.

By adhering to labor laws, compensating your employees fairly, and performing background checks before hiring, you protect your business and your employees from any future legal obstacles. Observing these principles completely will limit potential issues and increase the quality of employees you hire. The result is an increase in overall performance which every business owner strives for.

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