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Laws govern the way that employers can and cannot treat their employees, but they often don’t provide a clear set of rules. Here are tips for interviewing and hiring your next employee to help you follow employment laws as it relates to your company.
The “legal requirements for hiring employees” is a guide that provides information on the rules to follow while interviewing and hiring.
During the interviewing and recruiting procedures, employment rules such as salary, employee rights, and Laws Against Discrimination are critical to grasp. Knowing the regulations that regulate how you may hire new employees can help you stay compliant and competitive as an employer. Attracting and maintaining top personnel may be simpler if your company builds a reputation for being fair and law-abiding.
Let’s take a look at eight different types of employment legislation that might affect your interviewing and recruiting procedures.
Laws of the Department of Labor (DOL)
You must be aware of the key employment regulations that exist via the US Department of Labor (DOL) and your state labor bureaus as soon as you begin any recruiting process. We’ve prepared a list of websites with state law office contacts and other useful information to provide you with the greatest options.
Business Laws for Corporations
There are various corporate employment rules to follow while launching a new firm or staying compliant with an existing one. Include these topics in your employee handbook and/or new recruit documentation.
Employment-at-Will
An at-will employment relationship means that both the employee and the employer are allowed to terminate the relationship at any time, with or without warning, and for any reason (or no reason). With the exception of Montana and the fast-food industry in New York, all US states consider employment relationships to be “at-will.”
Your employee handbook and any Contracts of Employment should contain a statement about your at-will employment status. This safeguards both your rights as an employer and the employee’s ability to terminate the relationship at any moment.
Contracts of Employment
Although at-will employment is the norm, there are situations when the legal standing of at-will employment is questioned. If you engage into a formal employment contract with an employee, the employer is typically not permitted to terminate the job without reason or prior warning, depending on how the employment contract is written.
The employer must conform to the limitations it has agreed to with the employee, depending on the constraints of the agreement or contract. When creating employment contracts with any team member, we recommend getting legal advice since they are more legally binding and difficult to challenge.
Commission on Equal Employment Opportunity (EEOC)
The Equal Employment Opportunity Commission (EEOC) is in charge of implementing federal employment regulations that prohibit discrimination based on race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability, or genetic information.
Discrimination against someone who has complained about discrimination, filed a charge of discrimination, or taken part in an employment discrimination inquiry or litigation is also prohibited.
EEOC regulations apply to most firms with at least 15 workers (20 employees in age discrimination cases). The laws cover all aspects of employment, including hiring, firing, promotions, harassment, training, salaries, and benefits.
Wage Regulations for Employees
There are several rules that a company must follow in order to benefit its employees. Laws governing how and when workers should be paid are among them. These laws should be followed by new recruits from the beginning of their job.
The Fair Labor Standards Act was enacted in 1938. (FLSA)
The FLSA encompasses a variety of laws impacting full-time and part-time employees in the private sector as well as federal, state, and municipal governments, including minimum wage, overtime compensation, recordkeeping, and child labor requirements.
It’s crucial to consider the sort of job you’re recruiting for and whether the position (not the individual in the role) is exempt or nonexempt, since this will affect whether you pay the employee a salary or an hourly rate.
Additionally, be aware that deductions from wages for employer-required uniforms or equipment aren’t lawful if they drop employee earnings below the FLSA’s minimum wage or the amount of overtime compensation due.
Minimum Wage Laws in Different States
Understanding your state’s minimum wage rules can help you avoid underpaying your staff, which might result in refunds, fines, and costs. Some states have their own minimum wage, which is usually greater than the federal minimum wage (now $7.25 per hour).
The following states have passed minimum wage laws that are greater than the federally mandated minimum wage:
*Rates effective January 1, 2022.
**With the exception of Long Island ($15.00) and Westchester ($15.00), the minimum wage throughout New York state is $13.20.
Some states adhere to the federal minimum wage requirements, which set the hourly rate at $7.25. Georgia, Iowa, Idaho, Indiana, Kansas, Kentucky, North Dakota, New Hampshire, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin, and Wyoming are among them.
Alabama, Louisiana, Mississippi, South Carolina, and Tennessee do not have a state-mandated minimum wage.
Laws Concerning Interviews
There are certain rules to keep in mind throughout the interview and applicant screening process, such as those prohibiting you from inquiring about former salary and those requiring you to delete criminal history queries from your applications and interviews. Keeping up with the latest interviewing laws might help you avoid legal trouble.
Abolition of the “Ban the Box” Law
Employers must delete criminal history inquiries from job applications and interviews under “ban the box” rules. You may not lawfully enquire about criminal records with job seekers until you have offered at least a verbal offer of employment, according to the law.
Ban on Salary History Requests
Many states have also enacted legislation prohibiting employers from inquiring about a candidate’s wage history. Employers may be inclined to reset yearly compensation offers at a rate that fits the candidate’s wage history rather than the level of job the firm is filling, according to this trend.
Do not inquire about a candidate’s salary history during the interview process. Instead, ask about their compensation expectations for the future and consider revealing the wage range for your available job.
The Fair Credit Reporting Act (FCRA) is a federal law to regulate (FCRA)
Employment background checks are often permitted under the FCRA, and may include a copy of the candidate’s credit record.
Although the FCRA does not force employers to do background checks, it does establish a nationwide standard that firms must adhere to when conducting employment screening. Employees in various states may have additional rights than those granted under the FCRA.
Only provide a credit profile for an employment applicant if the position you’re considering employing them for requires it (such as an accountant or IT professional role).
Interview Questions That Aren’t Legal
There are certain questions that should never be asked during an interview. These inquiries may be deemed discriminatory, which might lead to legal action. They include asking inquiries on race, religion, sex, or nationality, all of which are matters of protected class.
Before an interview, having clear job descriptions and a list of permitted questions may assist the interviewer stay on task.
Laws Concerning New Hires
When it comes to employing new staff, there are various rules and regulations that must be followed. You must check an employee’s ability to work in the United States, notify your state of new hiring, and display workplace signs.
Form I-9 (Verification of Employment Eligibility)
Under federal law, employers are required to verify an employee’s eligibility to work in the US by completing an Form I-9 (Verification of Employment Eligibility) within three days of the employee’s start date.
The I-9 verifies that your workers are legally permitted to work in the United States. This form should be filled out and stored in a separate file for each employee.
Reporting on New Hires
All businesses must disclose basic information about new and rehired workers to the Office of Child Support Enforcement within 20 days of hire (note that some states require it sooner). Employers in the private sector are required to notify new hires to the State Directory of New Hires. Employers in federal agencies are required to report new hires to the National Directory of New Hires.
The state and federal government utilizes the Reporting on New Hires process to assist with mandates such as child support payments, garnishments, and so on. All employers, regardless of size, must comply with their state’s Reporting on New Hires requirements.
Posters for the Workplace
Statutes and regulations enforced by the DOL require that notices be provided to employees and/or posted in the workplace. The DOL provides free electronic copies of the required Posters for the Workplace, and some of the posters are available in languages other than English.
Post labor signs in prominent locations for all workers to see, and make electronic versions accessible to those who need them (remote employees).
Employee Rights Legislation
Certain rights are granted to employees. Make sure you’re familiar with and abiding by the employee laws that govern these rights. Retirement benefits, workers’ compensation, and child labor rules are among them.
Employee Benefits Protection
Employers that provide pension or welfare benefit programs for their workers are governed by the Employee Retirement Income Security Act (ERISA). Title I of the Employee Retirement Income Security Act of 1974 (ERISA) imposes a slew of fiduciary, transparency, and reporting responsibilities on companies that operate pension and welfare benefit schemes.
Employers and plan administrators are required to finance an insurance scheme to cover some types of retirement benefits under Title IV, with premiums paid to the federal government. Before providing such benefits to new workers, you’ll need to know what you’re accountable for paying.
There are also reporting requirements for COBRA (Comprehensive Omnibus Budget Reconciliation Act of 1985) continuation of healthcare benefits after employees leave the company and HIPAA (Health Insurance Portability and Accountability Act of 1996) to prevent the disclosure of sensitive patient health information (Health Insurance Portability and Accountability Act).
If you decide to provide benefits such as 401(k) and flexible spending accounts (FSA), as well as a variety of other eligible benefits, ERISA’s rules may have an influence on how you offer and administer these benefits.
Compensation for Employees
Although the requirement to have Compensation for Employees insurance comes from the federal government, the enforcement and guidance employers receive is from state labor offices. If you work for a private company or a state government, you should contact the Compensation for Employees program for the state in which you live or work each time you hire a new employee. If they are located in a state that you haven’t previously employed anyone, let your Compensation for Employees provider know because they will have to register that state under your policy.
A variety of industry-specific programs and tools are offered, including:
- The Longshore and Harbor Compensation for Employees Act (LHWCA), administered by the Office of Compensation for Employees Programs (OWCP), provides for compensation and medical care to certain maritime employees (including a longshore worker or other person in longshore operations and any harbor worker, including a ship repairer, shipbuilder, and shipbreaker).
- The Energy Employees Occupational Illness Compensation Program Act (EEOICPA) is a compensation program that provides a lump-sum payment of $150,000 and future medical benefits to employees (or their survivors) of the Department of Energy and its contractors and subcontractors who develop cancer as a result of radiation exposure or other work-related illnesses.
- The Federal Employees’ Compensation Act (FECA) establishes a comprehensive and exclusive Compensation for Employees program that pays compensation for the disability or death of a federal employee resulting from personal injury sustained while in the performance of duty.
- The Black Lung Benefits Act (BLBA) gives monthly cash compensation and medical benefits to coal miners who are completely handicapped due to pneumoconiosis (“black lung sickness”) caused by their work in the country’s mines.
Laws Concerning Child Labor
Before making a job offer to someone under the age of 18, there are a few things you should be aware of. Furthermore, some occupations are only available to 16-year-olds, and they have a restricted number of hours each day to work.
The FLSA’s child labor regulations are intended to preserve youth’s educational prospects while also prohibiting their employment in occupations that are hazardous to their health and safety. The FLSA limits the number of hours that adolescents under the age of 16 may work and defines hazardous jobs that are too risky for them to undertake.
Laws Against Discrimination
Discrimination laws have been enacted to protect workers. These workers are members of a protected class who cannot be discriminated against on the basis of race, religion, age, sex, nationality, or other factors. During the interview and employment process, it is critical that you observe these anti-discrimination regulations.
Employment discrimination based on a number of protected classifications is prohibited under Title VII of the Civil Rights Act of 1964. You may reject employment to someone because you have identified another applicant who is better qualified, but you may not do so for any reason based on race, color, religion, sex, or national origin, among other protected classifications.
The Civil Rights Act (CRA) of 1991 amended but did not replace the original 1964 law’s basic concepts. It further clarifies that in most situations, the employer bears the burden of evidence, as well as the severity of action accessible to courts when deciding on monetary remedies for plaintiffs. If an employer willfully discriminates in hiring choices, this Act allows for monetary damages.
The EPA (Equal Pay Act of 1963), which is a part of the FLSA and is administered and enforced by the EEOC, prohibits sex-based wage discrimination in the workplace between men and women who perform jobs that require substantially equal skill, effort, and responsibility under similar working conditions.
Wage equality must be protected if the workplace is to be healthy. This Act protects all employees in the same institution who do essentially equivalent labor from sex-based pay discrimination.
The Age Discrimination in Employment Act (ADEA) protects certain applicants and workers aged 40 and above from age discrimination in hiring, promotion, dismissal, remuneration, and other employment terms, conditions, or privileges.
The Americans with Disabilities Act (ADA) outlaws discrimination in the workplace against qualified persons with disabilities under Titles I and V, which apply to firms with 25 or more workers. It also underscores the incapacity of employers, both in the private sector and in state and municipal governments, to discriminate against otherwise eligible persons with impairments.
Employers are prohibited from using genetic information in employment choices under Title II of the Genetic Information Nondiscrimination Act (GINA). Employers are prohibited from seeking, collecting, or revealing genetic information, including family medical histories, that may be used to establish if a person is at risk for certain illnesses or ailments.
Industry-specific legislation
When recruiting these sorts of personnel, all companies must obey certain rules linked to certain industry or groups of workers.
Contracts with the government, grants, or financial aid
Although restrictions related to organizations that get government financing are important, you should not overlook regulations that companies you may partner with have since you may be obliged to follow the same rules after you do business with them.
Recipients of Contracts with the government, grants, or financial aid are subject to wage, hour, benefits, and safety and health standards under the following:
- Employees of contractors working on federal government Construction projects are entitled to prevailing wages and benefits under the Davis-Bacon Act.
- The McNamara-O’Hara Service Contract Act establishes salary rates and other labor rules for contractors providing federal government services.
- The Walsh-Healey Public Contracts Act mandates that contractors delivering goods and supplies to the federal government pay minimum wages and adhere to other labor rules.
The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects veterans’ employment and reemployment rights (USERRA)
Certain persons who serve in the military have the right to return to their previous work if they are summoned to report for duty. Those summoned from the reserves or the National Guard are included in this category. If a returning military member wants their old job or one close to it, it’s crucial to know this throughout the recruiting process.
Construction
Several government entities are in charge of initiatives aimed primarily at the building sector. The Occupational Safety and Health Administration (OSHA) has unique construction safety and health regulations, and the Wage and Hour Division mandates payment of prevailing wages and benefits under Davis-Bacon and related legislation.
Executive Order 11246, which requires federal construction contractors and subcontractors, as well as federally assisted construction contractors, to provide equal employment opportunity, is enforced by the Office of Federal Contract Compliance Programs; the anti-kickback section of the Copeland Act prohibits a federal contractor from inducing any employee to sacrifice any part of the required compensation.
Migrant & Seasonal Agricultural Workers
The Migrant and Seasonal Agricultural Worker Protection Act (MSPA) governs the recruiting and employment of migrant and seasonal agricultural workers by agricultural employers, farm labor contractors, and organizations. Wage protections, housing and transportation safety regulations, agricultural labor contractor registration requirements, and transparency obligations are all included in the Act.
Agricultural laborers are free from overtime premium pay under the FLSA, however workers on bigger farms must be paid minimum wage (farms employing more than approximately seven full-time workers).
Special child labor laws apply to agricultural employment under the Act; minors under the age of 16 are prohibited from working during school hours or in occupations judged too risky. These rules do not apply to children who work on their families’ farms.
Employers who want to hire foreign temporary workers on H-2A visas are required by the Immigration and Nationality Act (INA) to obtain a labor certificate from the Employment and Training Administration certifying that there are insufficient, able, willing, and qualified US workers available to do the job.
Conclusion
Employers that are aware of and adhere to employment regulations throughout the interviewing and recruiting procedures make better hiring judgments, which leads to a stronger workforce. The underlying purpose of employment law is to guarantee that employees have equitable equality and a good work-life balance, and that job seekers have fair access to opportunities that interest them.
The “why is it important to follow legal guidelines when interviewing candidates” is a question that many employers ask themselves. There are rules to follow while interviewing and hiring someone.
Related Tags
- employment law interviewing
- interview guidelines for interviewers
- employment application laws by state
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- discrimination during interview process
