In response to your request to have an employment law compliance plan for our client, Bradley Stonefiled who plans on starting a limousine service called Landslide Limousine, I have developed an employment plan which covers both State and Federal employment laws. Being in compliance with the Texas state employment laws, as well as Federal employment laws will greatly help out client in avoiding and penalties. The employment plan is based on Texas employment laws, which is where our client’s base of operations will be. The employment plan will also include Federal employment laws which are relevant to our client’s needs in helping him start his limousine service. I have also included the consequences for not being compliant with State and Federal employment laws.
Texas Employment Laws
Texas is a right-to-work State. This means that a person cannot be denied employment based on the fact that they are or are not a member of a labor union or other labor organization. The Texas Labor Code has five titles: General Provisions, Protection of Laborers, Employer-Employee Relations, Employment Services and Unemployment, and Workers’ Compensation (Texas Statue, 2013). The Texas Labor Code covers all aspects of employment. Title II (Protection of Labors) covers wages and discrimination. Being noncompliant can result in a civil action being brought by the employee, which can result in a monetary award that is determined by the courts (Texas Statue, Chapter1). Title IV (Employment Services & Unemployment) covers unemployment benefits and insurance which our client will be responsible. Failing to make unemployment contribution can result in a class “A” misdemeanor (Texas Statue, Chapter2). Title V (Workers’ Compensation) covers workers’ compensation insurance coverage, workers’ health and safety, and workers’ compensation benefits.
The penalty for noncompliance is sanction, criminal prosecution, fines and restitution (Texas Statue, Chapter 4). Texas Payday Law covers how employees are to be paid, either monthly or bi-weekly. The law also states that companies are not required to compensate their employees for vacation time, breaks, and lunches. However, they are required to pay employees for attending company meetings. Failing to pay employees’ can result in administrative cost equal to the wages in the claim plus 25% per employee. In addition to the wages which have not been paid ((Texas Workforce Commission, 2014)
Federal Employment Laws
States have their own employment laws which strengthen Federal employment laws. However, the Federal employment laws set the standard by which the States follow and or strengthen by adding new protections. Since our client is only looking to hire 25 employees, this would be considered a small privately owned business. Our client should also be made aware of the federal laws that he must comply to. The Fair Standards Act (FLSA) which requires employers to pay overtime to employees working more than 40 hours per week, at a rate of one-and-a-half times their regular hourly rate. The FLSA also includes the Equal Pay Act, which is an amendment to FLSA, which establishes the same rate of pay for both women and men (Cascio, p.82, 2013). Since our client is going to start Landslide Limousine in Austin Texas, the Immigration Reform and Control Act (IRCA) should also be included in this employment plan.
The IRCA explicitly states that employers’ cannot hire someone that is not legally authorized to work in this country. The employer must exercise his due diligence by verifying all documents supplied by a potential employee as verification of who they are. The penalties for noncompliance can vary from $100 to $1,000 per employee; furthermore criminal sanctions can be imposed if a pattern of hiring unauthorized employees (Cascio, p.88, 2013). The Civil Rights Act of 1964 and its amendments, which is the forerunner to the Texas Labor Code, protects employees from discrimination based on their race, color, religion, gender, and national origin as it pertains to employment and promotions.
This law was expanded in 1972 to include public and private employers with 15 or more employees. The penalty for an employer who is in violation of the Civil Rights Act can be responsible for compensatory and punitive damages (Cascio, p.82, 2013). The compliance plan stated here is a necessary start to get our client, Landslide Limousine, in compliance with Texas employment laws, as well as Federal employment laws. The goal here is not only to educate our client but to ensure that he is aware and understands all employment laws which pertain to him and his company.
Attorney General of Texas. (2013, February 20). Right-to-Work Laws in Texas. Retrieved from Texas Constitution and Statutes: https://www.texasattorneygeneral.gov/agency/righttowork.shtml Cascio, W. F. (2013). Managing Human Resources. New York.McGraw-Hill. Statutes. (2013). Retrieved from http://www.statutes.legis.state.tx.us/?link=LA Texas Workforce Commission. (2014, June 02). Texas Payday Law. Texas. Retrieved fromhttp://www.twc.state.tx.us/ui/lablaw/texas-payday-law.html#payPeriods