Types of Employment Law For Business Owners

Employment Law For Business Owners

If you are a business owner, you should be aware of the types of employment laws that affect your business. For example, you should know about the Fair Credit Reporting Act, the Pregnancy Discrimination Act, and the Americans with Disabilities Act. 

However, you should never assume that you are an expert in employment law. You need to surround yourself with professionals who are experts in this area.

1- Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a federal law that protects job candidates and employers from using fraudulent information when hiring employees. Its provisions include limiting the use of consumer reports in hiring decisions and providing job candidates with the opportunity to correct errors and explain their background. 

Furthermore, it requires employers to adhere to local and state laws and regulations. While most people associate the FCRA with credit checks, other forms of consumer data use, including criminal background checks, are also regulated by the law.

The FCRA provides protection to consumers by making it easier to understand their credit scores. Companies must provide employees with their credit scores in writing or electronically, stating the key factors that negatively affected their credit score, the date the score was created, and the name of the entity that provided the information. Failing to comply with these requirements could result in liability, including actual or punitive damages.

2- Pregnancy discrimination act

The Pregnancy Discrimination Act protects pregnant and breastfeeding employees from discrimination in the workplace. The act also prohibits discrimination based on medical conditions related to pregnancy and childbirth. 

It applies to any business with fifteen or more employees. If you think you might be violating the law, consider consulting with a lawyer at Phillips & Associates.

The law protects employees from being fired or demoted because of their pregnancy. This includes employers who fire pregnant employees for reasons not related to the pregnancy. It also protects employees who are taking protected time off work for fertility treatments or who take birth control to prevent pregnancy. These employees can even sue the employer if they feel harassed because of their condition.

If you are a small business owner who provides health insurance to employees, you must provide coverage for pregnancy and childbirth the same as other medical conditions. You should also familiarize yourself with the specific laws in your state to avoid any potential legal trouble with the help of employment lawyers. It can be costly for your business if you fail to meet these requirements.

3- Americans with disabilities act

The Americans with Disabilities Act (ADA) protects employees with disabilities by prohibiting discrimination in hiring, firing, and promotions. The ADA states that employers cannot discriminate against employees with disabilities based on their physical or mental limitations. 

Additionally, employers must make reasonable accommodations to accommodate the disabled. This law also prohibits employers from asking applicants about their illnesses, physical limitations, or disabilities unless it is relevant to the job.

In addition to private companies, public institutions, and state and local governments must be compliant with the ADA. Title II of the ADA prohibits discrimination based on disability in federal, state, or local government programs, services, and facilities. The Act also prohibits discrimination and exclusion in public transportation services.

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The ADA requires employers to provide reasonable accommodations to qualified individuals. These accommodations must be equal to those offered to other employees. If providing accommodations would create an undue hardship, the employer should consider providing other suitable accommodations. More than half of such accommodations cost between $1 and $500. The median cost is approximately $240. As technology continues to improve, the cost of these accommodations is declining.

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By Michael Caine

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