The purpose of this memo is to provide a compliance plan to be incorporated into your business strategies for a successful entry into the international market. As the business environment becomes more global, labor and employment law issues have become globalized as well.
The US and India’s employment laws both address the minimum wage and overtime pay for private and public or federal workers, equal rights and opportunities, discrimination, limitations and prohibitions on employment of minors, and occupational safety and health administration. Below is a list of applicable employment laws and consequences for non-compliance. A comparative research shows that there are similarities between India and US labor laws so I will also integrate these for consistency in compliance on the company policies and guidelines. The US Fair Labor Standards Act (FLSA) provides standards for the basic minimum wage and overtime pay for private and public workers. Working hours are restricted on non-agricultural agricultural operations for children under the age 16, and children under 18 are not allowed to work on jobs that are dangerous. India has a Minimum Wages Act 1948 that sets wages for the different economic sectors and State governments have minimum wage schedules, and another Article (24) covers the prohibition of child labor under 14 years old in factory, mine or hazardous work environment.
Non-compliance of labor laws very costly. Employees can recover unpaid wages going back 2 years and as much as 3 years and doubled as “liquidated damages” if the employer violation is proven as deliberate or intentional. Furthermore, one employee’s successful recovery unpaid wages and liquidated damages will most likely trigger a class action suit resulting in more financial risks. Child labor is a serious act and transcends internationally. In the US, employers who violate child labor laws are subject to fines as high as $100,000 for each child and up to 6 months in jail. The Occupational Safety and Health Administration Act (OSHA) encourage States to develop and operate their own job safety and health programs. OSHA approves and monitors State plans and provides up to 50 percent of an approved plan’s operating costs. Minnesota is one of the 22 state that are operating the State and local government employees therefore, Bollman Hotel Chains must comply by enforcing the standards, provide training and education and assist in providing a safe, healthful and hazardous free workplace.
The company should also consider using Globally Harmonized System (GHS) which is recommended by OSHA to establish mandatory requirement on classification criteria for health, physical and environmental hazards of chemicals to mitigate risks of health and safety violations when shipping materials or goods to India. OSHA has a published Federal Penalty schedule up to $500,000 and incarceration depending on the severity of the violation and determination whether the employer’s violation is “willful” or unintentional. Non-compliance will also result in financial risks due to the costs incurred on personal injury settlements and civil claims. It is highly recommended to recruit qualified workers in specialized fields India to ensure the company’s continued success. Conditions for the temporary and permanent employment of aliens in the United States, including provisions that address employment eligibility and employment verification are set forth under the Immigration and Nationality Act (INA), and employers have responsibilities under the immigration law during the recruitment process. Employers must verify the employment authorization of the individual hired after November, 1986 and retain a Form I-9 that is completed by the employee.
Non-compliance by discriminating against individu¬als on the basis of national origin, citizenship, or immigration status, and “willful” violation by hiring individuals that are unauthorized to work in the United State may be subject to fines, criminal penalties, debarment of government contracts, payment to unlawfully discriminated individuals. The Equal Employment Opportunity Commission was established by Title VII of the Civil Rights Act of 1964 to assist in the protection of US employees from discrimination. The law was the first federal law designed to protect most US employees from employment discrimination based upon that employee’s race, color, religion, sex, or national origin (Public Law 88-352, July 2, 1964, 78 Stat. 253, 42 U.S.C. Sec. 2000e et. seq.). Discriminatory practices in the workplace may result in costly fines and litigation expenses. For example, under the Age Discrimination in Employment Act, the employee who filed a complaint may be awarded back pay, retroactive benefits, liquidated damages or even a job promotion. Compliance is a process of knowing the laws and developingpolicies and guidelines to implement these laws, and communicating to organization. The following is a compliance plan to ensure full understanding of the employments laws and adherence.
Employment laws are constantly challenged and changed. Establish a compliance checklist to update employment laws to stay current and update the company policy as needed. Any changes or updates must be communicated to the employee. As Bollman Hotel Chain is becoming more international, the framework of the company policy should take into account the day to day realities of working with the company and meeting the individual, collective and business objectives as well as the local entities employment laws. A collection and reporting system should be established concerning employment, working conditions, social practices and human resources in each country to ensure equal treatment and non-discrimination, respect for individuals, safe and healthy working environment and alignment of the company goals.
Schedule a quarterly meeting with each manager to review the company policy. Provide formal and informal training program to all employees to bring awareness and understanding of their civil rights and employment laws.
Maintain all personnel records and document all pertinent communications such as employee evaluation, annual activity discussions and professional development discussions. Finally, foster an open dialogue between managers and employees to ensure that everyone is fully engaged and committed to full compliance of the employment laws.