3 Things to Know About Employment Law When Starting a Business

Starting a business is an exciting and challenging endeavor, but it can also be full of legal uncertainty. In this article, we’ll provide you with some key things to know about employment law when you start your own business.

Federal vs. State Employment Laws

When starting a business, it’s important to understand the difference between federal and state employment laws. Here are some key points to keep in mind:

– Federal employment laws apply to businesses with more than 100 employees.

– State employment laws apply to businesses with fewer than 100 employees.

– Most federal employment laws apply only to private employers, while most state employment laws apply to both private and public employers.

– There are a few exceptions to this rule: The National Labor Relations Act (NLRA) applies to all private and public employers, and many state minimum wage laws also apply to small businesses.

– Each state has its own set of regulations governing employee rights, including such things as overtime pay, paid leave, and discrimination in hiring.

– If you’re unsure about any aspect of the law, it’s always a good idea to contact Levitt who could give you additional information about employment law for business owners.

1. Overtime Pay


Employees in the United States are entitled to time and a half for hours worked in excess of 40 per week. This means that employees who work more than eight hours per day, forty weeks a year, are entitled to two and one-half times their regular hourly wage for every hour worked in excess of eight hours per day, up to a maximum of forty hours per week.

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If an employee works more than forty hours in a workweek, they are entitled to a minimum of twelve and one-half hours pay at their regular hourly rate for every hour over forty. Additional overtime pay is based on the employee’s total weekly overtime hours worked. For example, if an employee works forty hours over the course of the week, they would be paid at least $240 for those forty hours, or $40 per hour for those over eight hours and $80 per hour for those over sixteen hours.

2. The Family and Medical Leave Act

The Family and Medical Leave Act (FMLA) provides eligible employees with 12 weeks of unpaid leave per year to care for a newly born, adopted child, sick family member, or themselves. The act also allows employees to take unpaid leave to care for an elderly parent or spouse. Additionally, the FMLA provides a minimum wage exemption for employers with 50 or more employees.

The FMLA requires that an employee’s leave be taken in a consecutive 12-month period and that the employee must have worked for the employer for at least twelve weeks prior to taking leave. In order to be eligible for FMLA leave, an employee must have been employed for at least twelve weeks and work at a company with 50 or more employees.

FMLA leave is generally available to full-time employees who have worked for their employer for at least twelve months and have at least 1,250 hours of service within the last three years. The employee must also meet one of the following conditions: be the parent of a newly born child, be the primary caregiver of a child under 6 years old, be caring for a spouse or parent with a serious health condition, or be pregnant and unable to work because of pregnancy.

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3. Summary of Employment Law Rights


When starting a business, it is important to understand your employees’ employment rights. Employees have various rights that can protect them from unfair treatment at work, and can help ensure they are treated fairly for their work. This summary of employment law rights covers the most common types of claims that employees may make.

Employees have the right to be paid what they are owed, including overtime pay if they work more than 40 hours in a week. If an employee is fired without cause, they have the right to file a complaint with their state labor department. Employees also have the right to unionize if they feel their rights are not being respected at work.

What do you think?

Kane Dane

Written by Kane Dane