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Hiring Employees

State and federal laws govern the actions of business owners during the hiring and employment process. The new business owner must be aware that the following concerns apply when advertising job openings, interviewing, hiring and supervising employees. A business owner should:

• Avoid illegal discrimination
• Observe and respect privacy rights
• Safeguard against hiring illegal immigrants
• Observe relevant age regulations

It is vital that the new business owner understands the legal aspects of these topics prior to staffing a business. An attorney can advise you on these important employment matters.

Planning for and Posting a Job Opening

Prior to posting a job opening, a business owner (or business manager) should compile a list of requirements for the job. Based on the list, certain questions may be asked on a job application and during a job interview. Together, the requirement list and application can guide hiring decisions by allowing for a fair and equal assessment of each applicant.

There is no legal requirement for a private business owner to advertise job openings. Openings may be filled in any way that the owner desires, as long as the owner complies with state and federal laws. A new business owner should be advised, however, that posting openings can provide advantages. For example, the pool of applicants greatly increases when more people know of the opening. This increases the chance of finding the best person for the business. It also gives the business owner options and diversity while allowing a thorough examination of potential employees.

Finally, prior to hiring, it is wise to create an employee handbook describing business policies. Each new employee should receive an employee handbook.

Discrimination

Compliance with anti-discrimination laws is an important issue when hiring and compensating new employees:

• Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex or national origin.
• The Equal Pay Act of 1963 (EPA) protects men and women who perform substantially equal work in the same establishment from gender-based pay discrimination.
• The Age Discrimination in Employment Act of 1967 (ADEA) prohibits discrimination against persons who are 40 years or older.
• The Americans with Disabilities Act of 1990 (ADA) prohibits discrimination by employers against qualified individuals with disabilities.
• The Civil Rights Act of 1991 amends the Civil Rights Act of 1964, providing for (among other changes) monetary damages in claims involving intentional employment discrimination.

Some of these laws apply only to employers with a minimum number of employees.

Filing and Registration Concerns Following the Hiring of an Employee

Upon hiring a new employee, a business owner has numerous filing and registration tasks; these are based on both federal and state regulations. Generally, the following should be done upon hiring an employee:

• Have the employee complete the proper IRS forms
• Verify the employee's citizenship or immigration status
• Withhold and pay the appropriate taxes, such as unemployment, payroll, Social Security, Medicare and state taxes
• Obtain workers' compensation insurance
• Post all required Department of Labor and Occupational Safety and Health Administration (OSHA) notices
• Inform employee of benefits and policies

Contact an Attorney

Hiring new employees can be a complex process, especially for a new business owner. Many federal and state laws come into play. An attorney can assist you in dealing with the hiring of new employees.

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DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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