Are Your Clients Unknowingly Breaking Labor Laws?

Labor laws are designed to protect workers from the consequences of exploitation. Legislation regulating worker safety and well-being began in England in the late 1700s, and reform reached the United States about 100 years later. Laws governing workers are complex and numerous. Even well-meaning employers might inadvertently miss certain points and stipulations. Quality staffing liability insurance is vital to protect staffing firms financially from claims relating to improper business operations. However, the best practice is to be proactive and review processes before mishaps and misunderstandings occur, bringing fines or litigation.

Ways Your Client May Be Violating Labor Laws

The Occupational Safety and Health Administration establishes many labor laws, and individual states set up other regulations. Employers must stay up-to-date with the labor laws where their business operates.

Larger companies often outsource their human resources departments to other firms. Smaller companies, however, must stay on top of this aspect of doing business. Infractions, even unknowing ones, can occur in multiple areas.

Family and Medical Leave Act

Firms with 50 or more employees must give all eligible workers as much as 12 weeks of unpaid, job-protected leave every year. Certain specified family and medical reasons give employees the right to request this special leave. Examples include giving birth or caring for an ill family member.

National Labor Relations Act and Nonunionized Employees

A firm need not have currently unionized employees to be subject to the National Labor Relations Act. Workers have the right to gather and collectively bargain for better wages and working conditions as well as to form unions. Staffing liability insurance may help financially protect those employers who attempt to interfere with their employees’ collective discussions, but this federal act allows for peaceful employee gatherings and movements to promote change.

Fair Labor Standards Act and Employee Misclassification

The Internal Revenue Service frowns upon employers who deliberately misclassify workers to avoid paying overtime. The Fair Labor Standards Act demands that employees who work more than 40 hours per week be paid 1.5 times their regular hourly rates. These rules governing exploitation change depending on the nature of the federal administration. Those that favor big corporations over individuals tend to be more lenient on business practices, but ultimately, trying to get out of paying overtime is a dangerous financial and legal game.

Workplace Safety Rules

OSHA sets specific guidelines to protect employees at the workplace. Employers must post signs or make sure employees otherwise know how to report potential workplace hazards such as dangerous chemicals stored improperly. Workers also have the right to ask for safety training. Employees can also ask for an OSHA worksite inspection.

Employers can knowingly as well as unknowingly violate labor laws. Designed to give a voice to a population once powerless against the greed of unscrupulous business owners, labor laws actually make conditions better for everyone. With fair management and solid work performed with goodwill, businesses and societies prosper.

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.