There comes a time for many business owners when they cannot handle the workload and they need to hire someone to help. Hiring employees can be exciting as it is often a sign of growth, however, employing even one person will trigger a wide range of legal issues that must be addressed. The following are only some examples of legal issues that accompany hiring.
Registering for an employment identification number (EIN)
With even one employee, you will need to withhold and report certain taxes and payments to the Internal Revenue Service (IRS). To do so, you will need to have an EIN, which you can apply for on the IRS website.[1]
Establish a system for employee records
In order to best protect your business legally, there are many different records that you will want to keep for each employee. These can include personnel issues, including records of absences or tardiness, production numbers, and more in case you have to justify that a termination was not unlawful. The IRS also requires you to keep records of employment taxes for the past four years. It is critically important that you have a completed I-9 and W-4 for each employee and that these forms be filled out correctly. Failure to do so can result in serious penalties.
Ensure compliance with FLSA and the EEOC laws
Both the Fair Labor Standards Act (FLSA)[2] and the Equal Employment Opportunity Commission (EEOC)[3] require that employers comply with a variety of laws and regulations regarding hours worked, wages paid, discrimination, harassment, retaliation, and more. Violations of these laws can lead to heated legal disputes with employees, so you always want to be sure you meet the standards set out in these laws.
Contact an experienced business attorney in Houston for assistance today
Whether you have one employee or hundreds, it is always important to ensure you are complying with every applicable law and maintaining a positive atmosphere in order to encourage production and to avoid any legal disputes. Business lawyer Andrew Weisblatt thoroughly understands the wide array of issues you may face when you are hiring, firing, or making other employment decisions. He provides comprehensive advice and guidance to all types of business owners and can help limit your liability to employees and help you succeed. Call the Weisblatt Law Firm, LLC at 713-666-1981 for help today.
References:
[1]http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-%28EIN%29-Online
[2]http://www.dol.gov/compliance/laws/comp-flsa.htm
[3]https://www.eeoc.gov/
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
