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What are the legal procedures that a small business in Illinois must follow while hiring employees?

As a small business in Illinois, there are several legal procedures that you must follow while hiring employees. These procedures are set forth by state and federal laws and protect the rights of both the employer and employee. Below are some of the most important legal procedures to follow:

  1. Obtain an Employer Identification Number (EIN): Every business must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is a unique identification number that is used for tax purposes and must be included on all tax and legal documents.
  2. Verify the employee's eligibility to work in the United States: Before hiring an employee, you must verify their eligibility to work in the United States. This can be done by completing Form I-9 and keeping a record of the employee's identification documents.
  3. Properly classify the employee: It is important to properly classify your employees as either exempt or non-exempt under the Fair Labor Standards Act (FLSA). Exempt employees are not eligible for overtime pay, while non-exempt employees are eligible. Misclassification of employees can lead to legal issues and liability.
  4. Comply with minimum wage and overtime laws: In Illinois, the current minimum wage is $11.00 per hour for non-tipped employees and $6.00 per hour for tipped employees. You must also comply with overtime laws, which require employers to pay non-exempt employees at least one and a half times their regular rate for any hours worked over 40 hours in a workweek.
  5. Follow anti-discrimination laws: Federal and state anti-discrimination laws prohibit employers from discriminating against employees or job applicants on the basis of race, color, religion, sex, national origin, age, or disability. Additionally, Illinois law prohibits discrimination based on marital status, sexual orientation, military status, and other factors.
  6. Provide necessary training and safety measures: Employers must provide necessary safety training and equipment to protect employees while on the job. This includes providing safety equipment such as hard hats and safety goggles, and providing training on how to use and maintain the equipment.
  7. Maintain accurate records: Employers must maintain accurate records of each employee's wages, hours worked, and leave time. These records must be kept for at least three years and should be easily accessible for inspection by government agencies.

It is important to note that there may be additional legal procedures depending on the specific nature of your business and the type of employees you are hiring. It is recommended to consult with a licensed attorney for further guidance and to ensure compliance with all relevant laws and regulations.