Once you hire your first employees, you already can call yourself as an “employer”. However, as an employer, you have some responsibilities to your employees, and to all future employees, relating to compensation. These responsibilities are codified under federal, state, and local laws.
One of your obligations as an employer is to keep your employees safe. You must provide all workers with a safe, healthy place in which to work, under the provisions of the. This law applies to all employers. You need to ensure that your workplace is safe and clean so that it will not be a danger to your employees’ health. If your employees are under 18 years old, you have responsibilities to keep them safe – this is based on child labour laws.
Another responsibility is to treat your employees fairly. Treating employees fairly in the workplace is not just a moral responsibility. It is also necessary to ensure maximum company productivity and in the long-run, growth and success. When an employee is treated unfairly, it results in decreased employee morale.
You also must pay your employee his final paycheck as soon as possible when he leaves or terminated. It should be no longer than 30 days after termination (some states require more prompt payment).
More importantly, you should pay your employees properly. They spend time and effort working for your company so it is vital for you to pay them at least the minimum wage, depending on your employee’s skills and amount of working time (unless the employee receives tips or is somehow not subject to minimum wage.) If the employee is exempt and he or she is paid below a specific amount, you must pay that exempt employee overtime.
Employees who work for you for regular hours should not be treated as contractors. Rather, they should be treated as regular employees. Otherwise, you will be fined just like what happened to a bus company doing such.