Employment Law Scenario
Employment Law Scenario
Amy Giordano
LAW/575
January 26, 2015
David Weischadle, II
Employment Law Scenario
When starting a new business, it is important to make sure that you will be following all of the proper regulations and compliances. There are many that a new business needs to think about. As Barbara’s Bakery LLC is almost ready to open their doors, they have called me in as a consultant to make sure that they are within compliance for the Fair Labor Standards Act of 1938 (FLSA), and the Americans with Disabilities Act of 1990 (ADA).
The Fair Labor Standards Act of 1938 was established to maintain minimum wages, overtime pay which affects part-time and full-time employees ("Fair Labor Standards Act (FLSA) Of 1938", 2015). With in the Fair Labor Standards Act is the wage and hour division, this division focuses on what the fair minimum wage should be for all employees. Minimum wage doesn’t apply to contractors. An independent contractor is just that, they are independent and they can choose their own rate of pay. If an employer is caught not paying the minimum wage, there are penalties. The company will have to make the necessary changes in order to bring them to compliance. The employer would also be required to any back pay of wages and they may also have to pay up to a $10,000 fine. As far Barbara’s Bakery goes, it would be wise to hire employees as opposed to independent contractors. The employee that is hired can be a temp, full-time or a part-time employee. All three employees will still be subject to minimum wage unless they show that the offer more experience and could be worth more than minimum wage.
Another area that Barbara’s Bakery should be aware of is the Americans with Disabilities Act of 1990 (ADA). The ADA is an act that prohibits discrimination against individuals with disabilities in employment and in other areas ("Disability Resources", n.d.). In order to comply with this law, Barbara’s Bakery would have to make sure that when
Amy Giordano
LAW/575
January 26, 2015
David Weischadle, II
Employment Law Scenario
When starting a new business, it is important to make sure that you will be following all of the proper regulations and compliances. There are many that a new business needs to think about. As Barbara’s Bakery LLC is almost ready to open their doors, they have called me in as a consultant to make sure that they are within compliance for the Fair Labor Standards Act of 1938 (FLSA), and the Americans with Disabilities Act of 1990 (ADA).
The Fair Labor Standards Act of 1938 was established to maintain minimum wages, overtime pay which affects part-time and full-time employees ("Fair Labor Standards Act (FLSA) Of 1938", 2015). With in the Fair Labor Standards Act is the wage and hour division, this division focuses on what the fair minimum wage should be for all employees. Minimum wage doesn’t apply to contractors. An independent contractor is just that, they are independent and they can choose their own rate of pay. If an employer is caught not paying the minimum wage, there are penalties. The company will have to make the necessary changes in order to bring them to compliance. The employer would also be required to any back pay of wages and they may also have to pay up to a $10,000 fine. As far Barbara’s Bakery goes, it would be wise to hire employees as opposed to independent contractors. The employee that is hired can be a temp, full-time or a part-time employee. All three employees will still be subject to minimum wage unless they show that the offer more experience and could be worth more than minimum wage.
Another area that Barbara’s Bakery should be aware of is the Americans with Disabilities Act of 1990 (ADA). The ADA is an act that prohibits discrimination against individuals with disabilities in employment and in other areas ("Disability Resources", n.d.). In order to comply with this law, Barbara’s Bakery would have to make sure that when