Each year, thousands of businesses are cited for failing to follow basic laws of hiring and maintaining employees. The labor laws can vary slightly by state, but on a federal level, they are very cut and dry. Firms like Nomberg Law are here to help individuals who feel that they have been treated unfairly or terminated wrongly in the workplace. As a new business owner and an employee, there are thirteen things to know about United States employee laws.
- Tipped minimum wage is lower in some states.
Positions where an individual receives up to 80% of their income in the form of tips are subject to a lower hourly wage. Business owners must consult the standards for their state. While the federal minimum for tipped positions including food service workers, hair stylists, and nail technicians is $2.13/hr (as of 2016), the state minimums may be higher. For example, in New York, the current tipped minimum is $7.25/hr.
- Business owners have no right to tip share.
It is a common practice for business owners to implement tip share for support workers such as hostesses and bartenders in the food service industry. By law, anyone in an ownership position is not eligible to take a part of the tips earned by the employee, regardless of their secondary role in the business (chef, bartender, etc.).
- Tipped workers must retain 85% of tips earned.
Even when tip share is in place, it is required that tipped workers are able to keep 85% of their tips earned. The standard practice of most food service industries is to take 3% off the top of total sales to accommodate support staff.
- Salary pay must be reasonable.
A commitment to salary pay usually means a commitment to more hours worked each week. However, the number of hours worked should not equate to less than minimum wage for the worker. As in, it is considered an unfair working condition to pay someone $300 per week to work 50 hours.
- Medium size businesses must have job protection for employees.
According to the Family and Medical Leave Act, any business that has 50+ staff members must provide job protection for up to 12 weeks if an individual must miss work for a family or medical emergency.
- Employee discrimination is not okay.
When hiring, business owners cannot discriminate against an individual based on age, sex, race, religion, appearance, or sexual orientation.
- Veterans should be hired.
The Veterans’ Employment and Training Service is in place to investigate any business that continually does not hire veterans who are qualified and apply for their positions. This is considered against fair labor practices.
- Overtime pay is not optional.
Any hourly employee must be paid accordingly for overtime hours. This is outlined in the Fair Labor Standards Act.
- Wage garnishment has specific guidelines.
Employers may try to garnish an employee’s wages for reimbursement of a broken item or as punishment, this is illegal. No wage garnishment can take effect with the employee’s approval except in the case of court ordered garnishment for child/spousal support/ tax purposes.
- Employees may be terminated at will.
With the exception of those employees under contract – verbal or written – any employee can be terminated at will without a reason.
- Employees may not be terminated for public policy reasons.
Any time an employee takes time off for jury duty, voting or military/national guard purposes, it is considered acceptable under public policy. Employers are unable to fire someone for requesting time off for these reasons.
- Employers are unable to slander former employees.
When questioned about a former employee, employers are only allowed to state the time of employment and whether or not they would hire the individual again/ reason for leaving. It is illegal to make false accusations or defame an employee past or present.
- Employers cannot harass their employees.
While some comments may be made “in good humor” towards staff, they can still be deemed harassment. It is illegal to criticize an employee for anything relating to their appearance, weight, race, religion, or sexual orientation. Repeated remarks can be deemed harassment and give the employee room to sue.