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Want to Grow Your Small Business? You Need to Follow These Laws While there are many laws that apply to businesses of all sizes, others are based on the number of employees you have. As a small business owner, it’s hard to keep up with these changing laws—especially if your business is going through a rapid growth and hiring phase. But while you’re hiring additional staff, make sure to verify you’re in compliance with the law. Not following it could result in fines, a loss of business license, or even a lawsuit. Staying in compliance demonstrates that you know what is right and take the responsibility seriously. You not only protect your company but your employees as well. If you are fined significantly, you may not be able to retain employees and your resources may become depleted. What Laws Apply to All Businesses? Regardless of the size of your business, some laws apply to everyone: Child labor laws Crime victim’s leave

Want to Grow Your Small Business? You Need to Follow These Laws

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Page 1: Want to Grow Your Small Business? You Need to Follow These Laws

Want  to  Grow  Your  Small  Business?  You  Need  to  Follow  These  Laws    

   While  there  are  many  laws  that  apply  to  businesses  of  all  sizes,  others  are  based  on  the  number  of  employees  you  have.  As  a  small  business  owner,  it’s  hard  to  keep  up  with  these  changing  laws—especially  if  your  business  is  going  through  a  rapid  growth  and  hiring  phase.  But  while  you’re  hiring  additional  staff,  make  sure  to  verify  you’re  in  compliance  with  the  law.  Not  following  it  could  result  in  fines,  a  loss  of  business  license,  or  even  a  lawsuit.      Staying  in  compliance  demonstrates  that  you  know  what  is  right  and  take  the  responsibility  seriously.  You  not  only  protect  your  company  but  your  employees  as  well.  If  you  are  fined  significantly,  you  may  not  be  able  to  retain  employees  and  your  resources  may  become  depleted.      What  Laws  Apply  to  All  Businesses?  Regardless  of  the  size  of  your  business,  some  laws  apply  to  everyone:  

• Child  labor  laws  • Crime  victim’s  leave  

Page 2: Want to Grow Your Small Business? You Need to Follow These Laws

• Domestic  violence  leave  • Employee  safety  • Immigration  Reform  and  Control  Act  • Independent  contractor  rules  by  the  IRS  • Jury  duty  time  off  • Military  service  leave  • New  employee  reporting  • Hanging  appropriate  notices  and  posters    • Privacy  • School  appearances  leave  • Unemployment  insurance  • Following  wage  and  hour  rules  by  the  Department  Of  Labor  • Workers’  compensation  

 As  you  can  see,  there  are  plenty  of  laws  you  have  to  follow.  But  based  on  how  many  employees  you  have  (or  add),  additional  laws  may  be  applicable  to  your  business.  It’s  best  to  check  on  local  laws  through  your  state’s  department  of  employment  or  labor  or  your  state  and  local  Chambers  of  Commerce.  For  example,  the  California  Chamber  of  Commerce  has  a  comprehensive  list  of  laws  that  apply  based  on  the  number  of  employees.      As  we  delve  deeper  in  this  article,  we’re  going  to  take  a  closer  look  at  California  laws  as  an  example  of  variations  in  laws  with  which  small  businesses  must  comply.    Following  the  Law  is  Critical  While  you  may  think  some  of  the  laws  required  are  minor,  the  last  thing  you  want  to  do  is  ignore  them.  From  letting  employees  leave  for  their  children’s  school  activities  to  providing  your  staff  with  a  safe  working  environment,  all  applicable  laws  are  critical.      

• Americans  With  Disabilities  Act  The  Americans  With  Disabilities  Act  (ADA)  does  not  apply  unless  your  company  has  fifteen  or  more  employees.  But  that  doesn’t  mean  your  business  cannot  be  ADA-­‐compliant.  If  you  have  customers  using  wheel  chairs  or  other  assistive  devices  entering  your  place  of  business,  you  still  want  to  accommodate  them.    

 • Affirmative  Action  

Page 3: Want to Grow Your Small Business? You Need to Follow These Laws

According  to  the  California  Chamber  of  Commerce,  Affirmative  Action  laws  in  California  don’t  apply  until  a  business  has  fifty  or  more  employees.  This  law  refers  to  your  admission  policies  regarding  unrepresented  groups—such  as  women  and  minorities.  

 • Pregnancy  Disability  Leave  

If  you  have  five  or  more  employees,  California  requires  you  to  provide  pregnancy  disability  leave  to  any  expectant  mothers  working  for  you.  This  does  not  just  include  the  legally  mandated  time-­‐off.  It  could  also  include  additional  disability  leave  for  complicated  pregnancies.  

 • Organ  and  Bone  Marrow  Donor’s  Leave  

Employees  who  want  to  donate  to  family  or  others  often  have  to  do  so  on  their  own  time.  However,  in  California  and  several  other  states,  if  you  have  fifteen  or  more  employees  you  are  required  to  provide  the  employee  with  adequate  leave  in  order  to  donate.    

 Make  sure  you  perform  a  thorough  evaluation  of  state  and  federal  laws  before  you  open  your  doors,  and  each  time  you  add  more  staff  to  the  payroll.  That  way  you  can  ensure  you’re  in  compliance  and  you  minimize  your  small  business’  risk  of  fines  or  lawsuits  down  the  road.  You  also  create  a  great  work  environment  for  your  employees,  one  they  want  to  be  in.      Get  Assistance  Before  It’s  Too  Late  Employment  laws  can  be  difficult  to  understand.  Certain  changes  in  your  small  business  trigger  new  required  compliance  with  laws,  so  you  need  to  stay  on  top  of  them  as  you  grow.  MJ  Management  Solutions  can  perform  an  assessment  of  your  small  business  to  see  whether  you’re  currently  in  compliance,  as  well  as  educate  you  on  the  applicable  laws  as  your  business  grows.  Schedule  an  appointment  at  www.MJMS.net  to  speak  with  a  human  resources  consultant  today.