What legal requirements must a small business meet when hiring employees?
As a lawyer, I can advise small business owners about the legal requirements involved in hiring employees. First and foremost, employers must comply with state and federal anti-discrimination laws. It is illegal to discriminate against an applicant or employee on the basis of race, color, religion, sex, national origin, age, disability, or genetic information.
Employers must also ensure that their hiring and employment practices are in compliance with applicable state and federal laws regarding minimum wage, overtime, worker's compensation, and leave requirements. Small businesses may also need to obtain an Employer Identification Number (EIN) from the IRS, which is used to report employment taxes.
Employers must verify the employment eligibility of all employees by completing Form I-9 and retaining the forms for a certain period of time after the employee's termination. Depending on the nature of the business, employers may need to obtain specialized licenses or permits, such as a commercial driver's license or a permit to work with hazardous materials. Employers must also comply with workplace safety regulations and maintain records of workplace injuries and illnesses. In terms of paperwork, small businesses must keep accurate records of employee information, including employment contracts, compensation records, and personnel files.
Employers also need to file and pay employment taxes on a timely basis, and provide employees with applicable tax forms, such as W-2s. In summary, small businesses hiring employees must comply with anti-discrimination laws, obtain necessary government identification numbers, verify employment eligibility, maintain records, and comply with workplace safety regulations. For more specific advice, it is recommended to consult with a licensed attorney.