Role of the US Constitution and Legal System in Business Regulation Essay

Custom Student Mr. Teacher ENG 1001-04 2 August 2016

Role of the US Constitution and Legal System in Business Regulation

The Constitution of the United States and their legal system have an impact on the guidance and operation of companies in any industry. In case a person breaks a law, for example, he or she may be obliged to pay a fine or even imprisoned in the US. It works the same way with companies: if a business is found responsible for allowing its employees to violate regulations this company is subject to a fine and even closedown. For instance, companies are responsible to guarantee that all employees are legally authorized to work in the United States. Occasionally employees without proper documentation are able to get a job.

The law enforcement agencies perform raids on business enterprises in effort to enforce appropriately laws concerning citizenship and permanent residency. These raids have been taking place all over the United States in attempt to protect the motherland after the tragedy of the September 11th. Immigration authorities have used debatable procedures when many innocent people have been kept in custody. The law allows the Immigration and Customs officials the right to question anyone on the premises during a search. It is the employer’s obligation to guarantee that all employees are legally authorized to work by means of performing systematic background checks in order to avoid a chaos and confusion during raids and punishment from the government of the US.

Application of Constitutional RightsIn cases when organizations are hiring workers without proper documentation, the government enforces laws in order to protect the interest of United States citizens, the government, and businesses. In Los Angeles, a business was raided and workers were detained due to immigration authorities receiving information about undocumented workers at a particular organization. The constitution grants the right for authorities to search and seize given there is probable cause (US Constitution Annotated-Analysis and Interpretation of the Constitution, 2005.)

Probable cause can be a controversial term that is used, in theory it means that all facts must be thoroughly investigated and warrants will be granted, if procedures are followed. In this particular case in Los Angeles, documented and undocumented employees were detained. Unfortunately, the document employees believed their constitutional rights were violated and they sued the Immigration and Customs Enforcement for false imprisonment and detention without justification. The search warrant permits Immigration and Customs Enforcement to question everyone inside of the establishment in question (Bazar, 2008). In this particular case, one-fifth of the employees at this establishment were found to be undocumented.

The Effect of Constitutional Rights on BusinessesEmployers are screening their employees more thoroughly to avoid the serious consequences of being an enabler of undocumented citizens. As one can imagine, this is a timely and costly procedure even if enough qualified employees are available. In many businesses, organizations are struggling to keep up with demand rather than being overly selective employers are looking for bodies to fill positions. Laws and regulations come with a cost; when those laws do not promote a healthy business environment, laws will stunt the growth of business enterprise.

When organizations do not follow procedure by actively screening their applicants by conducting background checks, it reflects poorly on the organizations. There is a high risk of hiring applicants who are not qualified for positions, and the probability is even higher that undocumented workers will be hired. The Immigration and Customs Enforcement is enforcing laws designed to protect the interest of businesses, losing employees is extremely costly. When employees are documented they are more likely to remain employed at the company. Overall, constitutional rights and United States laws impact the hiring procedures of organizations which directly impacts the overall productivity of business. Following local city, state, and federal laws determines the flow of business and affects the customer base.

Impact of Labor LawsLabors laws impact businesses the most because they dictate how businesses are run, their daily productivity, and expenditures. Federal labor laws protect the interest of employees by setting strict standards for organizations to follow. Regulations schedule breaks, wages, safe working conditions, unemployment insurance. There are federal standards that organizations must abide by and state regulations which never go below the federal standards. Federal laws set a minimum standard and state governments decide what is appropriate for their state (keeping in mind the cost of living standards). Federal and state regulations dictate the age of employees including hours and breaks. There are strict restrictions about the type of work environment children can work in; allowing children to work in hazardous conditions is strictly prohibited under federal law (US (Department of Labor, 2008.) Employers must abide by federal regulations to compensate employees for working more than 40 hours per week. At some organizations unions are established to defend the rights of employees. Unions are a powerful force in the United States and are able to negotiate further for wages; holiday pay, fight against disciplinary action, and other challenges employees deal with on a daily basis.

ConclusionThe United States Constitution and federal regulations have a tremendous impact over the functionality of all aspects of daily business operation. Immigration laws have impacted the operations of businesses; some organizations are learning they must follow federal laws by thoroughly screening applicants prior to hiring them. These regulations are in place to protect employers from severe loss of capital. The negligence of employers can impact citizens in good standing because Immigration and Customs Enforcement can use the right of search and seizure to question anyone in a business establishment.

The United States Constitution and federal regulations are in place to protect the interest of businesses and people working in the United States legally. When regulations are not actively enforced by employers it impacts the interest of the business, and its employees who are law abiding. Labor laws protect the interest of employees and the United States economy. The laws dictate working conditions, hours employees can work, and federal standards for minimum wage are set. Most important, labor laws protect the interest of the future generation by enforcing age restrictions that would interfere with the development of children. Federal laws are designed to be fair and balanced to protect the interest of businesses and legal employees.


Bazar E. (2008, June 25). Citizens Sue After Detentions, Immigration Raides. USA Today. Retrieved November 1, 2008, from: Constitution Annotated-Analysis and Interpretation of the Constitution. (2005) U.S. Supreme Court Center. Retrieved October 30, 2008, from: Department of Labor. (2008). Compliance Assistance. Retrieved November 1, 2008, from US Department of Labor :

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