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Team Reflection: Principles and Strategies Essay

In this week’s assignment Team C will discuss the principles and strategies of a small, medium, and large business in regard to each business operating in compliant with state and country laws. Whether a business is or simply expanding to a new state or country it is essential for each company to comply with the rules and regulations of the company’s state and country laws. This paper will assist in helping the following clients, A, a new small business owner in opening a limousine service. B, a human resources director in preparing Clapton Commercial Construction for an expansion to another state. C, an human resources representative with the Bollman Hotels chain in planning to enter into the international market.

Landslide Limousines a small business client

A person wants to open a limousine service in Austin, Texas. This newly forming company fits under the definition of small business, according to the Small Business Administration (SBA, 2013). Providing “first-class transportation” to the Austin area will be achieved by Bradley, and for the purpose of planning, 25 employees. He will have to consider occupational safety, commercial licensing, and environmental protection laws as well as any federal or state labor laws.

The person must also be mindful of several of factors. The liability issues, the cost of expenses due to distributions and sells of sales or services. The individuals must determine which entity level of performance it desires to operate. Professional advertising or broadcasting of the business should be based to local, statewide or international consumers. It would be beneficial to enrich marketing factors solely depending on the market in which the company desires to reach. The effectiveness of the business is also based on retention, diversity, and the supply and demand curve. The ultimate goal would be to retain as much revenue while adhering to laws implemented by the Equal Employment Opportunities Act, and the laws of Industrial Relations. The federal laws will determine the labor market conditions and legislation for fair labor standards.

This limousine service must comply with many labor laws. When it concerns providing pay and benefits, the service must comply with the Equal Pay act, Fair Labor Standards Act, the Social Security Act, the Federal Unemployment Act, and the Affordable Care Act (ACA). Non-compliance to these laws carries various penalties from fines to incarceration to both. The stiffest penalty arises from the Federal Unemployment Act that can include up to $500,000 and five years’ imprisonment (Rueters, 2013). Compliance with the ACA can postpone services until the service employs more than 50 personnel (Mach, Scales, & Mulvey, 2013) and he or she has to comply with the Employee Retirement Income Security Act only if the company sets up a retirement plan as part of its offered benefits (Cascio, 2013). The state of Texas does not require employers to carry worker’s compensation insurance (TWC, 2013). The business must also comply with the National Labor Relations Act by not hampering the employees’ efforts to organize into a union.

The penalty for interference can include $10,000 in fines, and one year in prison. If the employees organize, beware of the Taft-Hartley and Landrum Griffin Acts, designed to keep corruption out of unions and ensure accountability through accurate administration. General government regulations are required to enforce laws issued by federal, state and local administrative agencies due to the Administrative Procedure Act. If wrongful acts were administered by any company then a petition can be filed. Consumers are entitled to the Freedom of Information Act and can obtain information from the Federal Register due to the Government in the Sunshine Act. However the employees are covered under the Equal Access to Justice Act.

Clapton Commercial Construction a medium business client

Clapton Commercial Construction (CCC) is looking to expand into the state of Arizona. The company located in Detroit, Michigan, and has 650 employees. By expanding to the state of Arizona the company is looking to increase its number of employees by 20%. To prepare for the expansion the company will need to comply with the labor and employment laws for the state of Arizona. Many of the federal employment laws can apply to states. For example Fair Labor Standards Act (FLSA) applies to all states but the amounts differ between states and in most cases the differences are because of the cost of living in different states. The federal minimum wage rate is $7.25 and the state of Arizona minimum wage rate is $7.35. The government reviews and adjusts the state minimum wage rate annually based on the economic indicators.

Clapton Commercial Construction must prepare to pay a different minimum wage rate in the state of Arizona. With CCC a construction company must pay close attention to safety and labor laws. Safety and labor laws are the key to staying compliant with federal and state regulations. By not following the state and federal regulations businesses put themselves at risk of paying heavy fines, suspended, or shut down. There are many environmental protection laws which construction companies must follow. The United States has many environmental protection agencies. The Congress created several laws to protect the environment in 1970. They are listed at Environmental Protection Agency, and supported by the National Environmental Policy Act. Both are strictly enforced by giving the federal government environmental impact statements for proposed construction.

These federal laws are in place to help companies stay compliant. State and local laws are implemented to help customize the rules and regulations to meet its region’s needs. Occupational Safety and Health Act (OSHA) that tracks illnesses, injuries, and fatalities are put in place to help provide protection for the employees. Age Discrimination in Employment Act (ADEA) is put in place to help protect and hire workers at the age of 40 or over. Both acts are federal and apply to most businesses in the USA.

Bollman Hotels chain a large business client

Bollman’s Hotel chain is looking to expand its operations. The organization located in Minneapolis, Minnesota, with approximately 25,000 employees. The company is planning to grow and wants to start their expansion in India. This will increase their workforce of the organization by 20%. After doing some research Bollman’s Hotel Chain has some labor and employment laws the company needs to comply with to achieve this goal. The organization needs to apply for a standing order also known as the Industrial Employment act of 1946. The organization needs to submit five copies of the draft to the certifying officers within six months prior to business start date. Organizations complete this task simply because the organization is planning to hiring more than 100 employees. Penalties for not submitting the draft standing order is subject to a fine up to 5000 rupees and continue offenses can be fine 200 rupees every day after the first during the offense continues.

The organization needs to acknowledge the Child labor act of 1986, according to the Child labor act no one can employed individuals under the age of 15 years. Failure to comply with the child labor act of 1986 will result in imprisonment for no less than three months and up to one year with a fine of 20000 rupees. Bollman’s Hotel Chain also needs to comply with the Equal Remuneration Act of 1976. The organization needs to apply equal employment, pay, and rights to both men and women in the country of India. Failure to comply with the Equal Remuneration Act of 1976 will result in imprisonment up to one-month and fines up to 10000 rupees. Any unfair and deceptive practices will be reviewed as a violation under Section 5 of the Federal Trade Commission Act and charged in a state or federal court.

Conclusion

In conclusion Team C analyzed three businesses with various opportunities for expansion of his or her operations in Texas, Arizona, and India. Although as consultants Team C researched and analyzed the strategies for Landslide Limousines, Clapton Commercial, and Bollman Hotels, each business will decide on a business strategic plan appropriate for his or her business. According to Cascio 2013, “Exploration of Law provides the basis for discrimination suits and subsequent judicial rulings.” These laws include Discrimination, Employment laws, Civil rights, Title VII, Thirteenth, and Fourteenth Amendments, Equal Employment Opportunity Commission, and OSHA.

References
Attorney, U.S., (2013). Retrieved from http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/crm02413.htm Mach, A.L., Scales, M., & Mulvey, J. (2013) Individual mandate and related information requirements under ACA. Congressional Research Service,
Washington, D.C. Ministry of labour and Employment, Retrieved from Government of India: http://www.labour.nic.in http://www.ica.state.az.us/Labor/Labor_main.aspx

Rueters, T., (2013). Retrieved from http://smallbusiness.findlaw.com/business-taxes/penalties-for-violating-federal-employment-tax-rules.html SBA, (2013). Retrieved from http://www.sba.gov/content/summary-size-standards-industry TWC, (2013). Retrieved from http://www.twc.state.tx.us/customers/jsemp/employee-rights-laws.html. Texas Workforce Commission


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