Case Study: Employment Law Compliance Plan

Landslide Limo Service
Memo
To:
Bradley Stonefield
From:
XXXXXXXXXXXXXX

University of Phoenix
Professor Yamile Bandera

cc:
Traci Goldeman
Date:
September 27, 2014
Re:
Employment Law Compliance Plan

In regards to you request I have created a current employment compliance plan for Bradley Stonefield to ensure the process of starting a new business will be successful. Bradley Stonefield has explained his desire to start a Limousine company within the Austin TX area. Bradley Stonfield has indicated that his goal is to have25 employees within the first year of operation.
The memo is to discuss and provide current employment laws and the consequences for non-compliance with said laws. Employment laws are created to protect the employer as well as the employee, failure to comply with any state or federal employee law could have an end result of complete failure, especially for smaller or new organizations. Non-compliance with employment laws can result in large or unaffordable penalties or severe actions. The memo will address 4 employment laws some are specific to Texas and the repercussion for non-compliance with said laws. The motor carrier safety improvement act of 1999, the equal employment act EEOC of 1972, employment at will for Texas, and Texas workers compensation act.
The motor carrier
safety improvement act of 1999:
The Department of Transportation (DOT) established a separate administration with the Federal Motor Safety Administration on January 1 1999. (FMCSA, 2014) A limousine service has a standard set of regulations for smaller vehicles and larger capacity vehicles; the company must register with the FMCSA and have a current motor carrier identification report with the USDOT, must be current every two years. Each service vehicle must be insured with a minimum of the federal regulated minimum coverage in the event of a motor vehicle accident. The service driver must have and keep a current “C” class state driver’s license that includes a passenger endorsement. All drivers pre-employment must submit to a drug/alcohol test and must be willing to submit to random testing. Any service vehicle with the capacity to carry more than 9 persons and no more than 15 persons, the driver may not exceed a driving time of 10 hours. The driver/s must complete a safety inspection and maintain a vehicle safety and maintenance log before each trip prior to leaving the designated parking areas. All drivers must have a current driver’s license for the state and valid, and must either provide consent to have employer request driving records or provide current copies. Every vehicle that is used for service must be marked with a USDOT registration number and kept current. The company must keep and maintain all driving records/accident reports for drivers and vehicles for the past three years to current. (Federal limousine service and regulations, 2014)
Failure to comply with federal regulations could result in a number of fees and penalties; Failure to maintain current DOT and license records can be up to or exceed $100.00 per violation, failure to maintain drug and alcohol records can be a fine up t0 $1000.00 per violation, failure to maintain current driving records can be a fine up to $2500.00 per employee, and any employee that is cited for using a vehicle during work hours for anything other than to transport a paying customer can result in up to a $10,000.00 fine.
The equal employment act EEOC of 1972:
The EEOC protect any persons from employment discrimination due to sex, color, religion, national origin, age, disabilities, political views, marital or family status, or sexual orientation. Failure to comply with EEOC laws can result in several lawsuits for discrimination, TSU woman’s basketball coach won a lawsuit in the sums of $730,000.00 for sexual discrimination in 2011. She was originally hired in 2008 and then terminated shortly after, she had been threatened with a demotion and compared to a men’s coach Tony Harvey and this was terms for a lawsuit. Failure to comply with the current EEOC laws can result in a lawsuit as such and when an employee is terminated this example shows that no employee regardless of who they are should not be discriminated against due to personal feelings.
Texas at-will employment
“The general rule in Texas, and in most states, is that absent a specific agreement to the contrary, employment may be terminated by the employer or the employee at will, for good cause, bad cause, or no cause at all.” (Employment at will Doctrine in Texas – Appellate case law 2010) Even though is a “at-will or right to work” state federal laws still apply, if an employee is on a contracted time they are exempt from the at will law.
In an organization that embraces the “at will” employer law, the employer must also agree to that an employee will not be terminated unless it is for “good reason”, if an employee is performing satisfactory work of higher they are not exempt but they are also not at risk. Again failure to comply can result in a large and/or detrimental lawsuit to the company. “The supreme court recognized
in
Montgomery County that the courts must carefully distinguish between carefully developed employer representation upon which an employee may justifiably rely, and general platitudes, vague assurances, praise, and indefinite promises of permanent continued employment” (Employment at will Doctrine in Texas – Appellate case law 2010)
Texas workers’ compensation act:
The workers compensation act is designed to tentatively and temporarily replace the wages for a worker when employment hours are missed due to an on the job injury/injuries. The law only applies when an employee is able to prove that they were injured on the job/on the clock, they are entitled to a percentage of there regular earnings and medical care for said injuries. Texas is the only state that is able to choose not to offer workers compensation in Texas less than 40% will opt out of the workers compensation coverage. An employer that has chosen to enroll with the workers compensation, the threat of a law suit for not paying medical bills, or paying a portion of wages is not a possibility, for the remaining 40% of employers who do not use workers’ compensation are suspect to possible lawsuits that could include coverage up to full wages for time missed. Texas employees are also able to decline to pay into workers compensation, and there are limitations to collecting of filing for workers compensation: If the employee is under the influence of drugs or alcohol, if the employee suffered from a self-induced injury, the injury was caused by a non-employee or was for personal reasons, or the injury was obtained while off duty.

References:
FMCSA. (January 1, 2014) retrieved from Federal Motor Carrier Safety Administration: http://www.fmcsa.dot.gov/mission
Federal limousine service and regulations. (2014) Retrieved from Limo service & limousine service regulations: http://www.airportcommuter.com/worldwide/federal_limo_regulations.htm
Employment at will Doctrine in Texas – Appellate case law (2010) retrieved from Texas opinions: http://www.texas-opinions.com/law-employment-at-will.html