Hiring employees for the first time is an important milestone for any business. But if business owners aren’t careful, they can easily violate employment laws and expose themselves to lawsuits without realizing it.
In our last post, we described two of the most common employment law violations for small business owners to be careful of, including misclassifying employees and not scheduling a lunch break for employees. Today we will discuss three more common employment law violations to be mindful of.
Allowing workers to put in too many hours. Along the same lines as not scheduling a lunch break for workers, allowing a worker to put in too many hours without overtime pay can also violate the law. Failing to provide overtime pay when it is required under the law could result in your business being sued for back-pay, as well as penalties.
Not paying a former employee for unused vacation. If you decide to offer paid vacation, make sure that you check out whether your state requires compensation to be provided for unused vacation time if a worker leaves. In Colorado, employers must provide separating workers with compensation for all vacation that they earned, according to the terms of the employment agreement.
Unenforceable non-compete agreements. Many employers think that they can just write up their own non-compete agreements, but the courts are starting to be very picky with these contracts. This is definitely something that you will want to work with your business attorney on if you want to ensure that the non-compete agreements will be upheld in court.
Of course, the best way to make sure that your business is in compliance all labor and employment laws is by meeting with an experience business attorney in your state.
Always keep in mind that each state has its own set of employment and labor laws. For more information on the employment laws in Colorado, check out the state’s Department of Labor and Employment website.