Running head: LEGAL CHANGES

Legal Changes Jennifer Chapman BUS 401 October 15, 2012 Jane Schneider

LEGAL CHANGES Legal Changes As an entrepreneur of a small business that has 20 employees and has customers in different countries there are a few legal issues that an entrepreneur would need to keep up with. Two legal issues that are important are on-the-job safety laws and employment and other labor laws. It is important to keep up-to-date on these two legal issues to ensure the business is in compliance at all times. There are different options available to an entrepreneur to stay up-todate on these legal issues and have different costs, times, effectiveness, and appropriate uses. On-the-job safety laws

On-the-job safety laws affect businesses no matter how small or large the business is. As a small business safety should always come first for the employees. Occupational Safety and Health Administration (OSHA) requires that companies are in compliance with their laws by ensuring employees are protected from occupational health hazards such as atmospheric contaminants, chemical, biological, physical, and ergonomic hazards (IOSHA, 2012 para. 2). Indiana is allowed to have a state OSHA plan known as IOSHA. IOSHA is required to comply with the minimal federal standards and offer the same standard. An employee can be a whistleblower to IOSHA just as calling OSHA. IOSHA enforces the laws just as OSHA does and does routine inspections. According to the OSHA website In addition, Indiana OSHA conducts unannounced inspections of private and public sector general industry and construction employers in accordance with current enforcement program priorities (OSHA, 2012 para. 6). For a small business OSHA is required by the Small Business Regulatory Enforcement Fairness Act to Produce Small Entity Compliance Guides for OSHA rules with a significant impact on a substantial number of small businesses

LEGAL CHANGES

Be responsive to small business inquiries about compliance with regulations

Submit final rules to the Congress for review

Have a penalty reduction policy for small businesses

Involve small businesses in the development of some proposed rules through Small Business Advocacy Review Panels (OSHA, 2012 para. 8).

OSHA gives small business owners a break on penalties for not following the requirements but also educated employers on what they need to do to stay in regulations.

Employment and other labor laws A business owner cannot discriminate against anyone during hiring based upon age, disability, race, color, creed, national origin, religion, or gender (FindLaw, 2012). There are different acts that have been put in place over the years to help protect employees and applicants against discrimination. As a company with 20 employees the following acts are required to be followed Title VII of the Civil Rights Act of 1984, Americans with Disabilities Act, Age Discrimination in Employment Act, Fair Labor Standards Act, and Family and Medical Leave Act (FindLaw, 2012). According to (FindLaw, 2012), if the company had fewer than 20 employees the Age Discrimination in Employment Act would not apply. The employment and labor laws are for the employees and applicants protection to ensure that he or she is in a good work environment once hired and not discriminated against when in the hiring process. Employers cannot discriminate against individuals with disabilities and must give reasonable accommodation for the disabled individual to perform the job. An accommodation is a change in the DOL's work rules, facilities, or conditions which enable a qualified individual with a disability to apply for a job, perform the essential functions of a job, or enjoy equal access to the

LEGAL CHANGES benefits and privileges of employment. An accommodation is reasonable if it is effective in producing the desired result, and balances the needs of the applicant or employee and the DOL (Department of Labor, 2005 para. 4). All employers of this size will be required to have paperwork for taxes such as an I-9 and W4 form to have taxes taken out of employees paycheck for wages earned. There are different requirements for employing youth. Basic provisions are in place for eligible hours and occupations for youth to work. Child labor provisions under FLSA are designed to protect the educational opportunities of youth and prohibit their employment in jobs

that are detrimental to their health and safety. FLSA restricts the hours that youth under 16 years of age can work and lists hazardous occupations too dangerous for young workers to perform (Department of Labor, 2012 para. 1). Options available to stay up-to-date

LEGAL CHANGES There are numerous options available to stay up-to-date on the different laws and

regulations. One way to stay up-to-date would be to visit the SBA website. The SBA website has many features that allow small business owners to learn everything from starting a business to closing a business. The cost of visiting the SBA website is just the cost of the Internet as everything on the website is free to everyone. This method can be time-consuming because one would have to do all the footwork themselves. The SBA website is very effective in giving the correct information and research on the website will result in good information that will be effective in making sure the entrepreneur is in compliance. The SBA website is a good tool to use to start research before the business opens. For a small business of 20 employees there may be enough revenue generated to have an attorney do some of the research for the entrepreneur so he or she can concentrate on running the company. The SBA website is available all the time except when maintenance is performed. Another option to stay up-to-date with changing laws and regulations is to contact a business attorney that can keep an entrepreneur current on new or changed laws and regulations. The attorney is the most expensive route as fees can be substantial to do research for the entrepreneur. An attorney would be doing all the footwork so this is the least time-consuming method for the entrepreneur. A drawback to using an attorney besides the cost is that the information may not be given right away to the entrepreneur, and the entrepreneur may be out of compliance and not know it. The attorney method is effective and ensures accurate information is given. Using an attorney also allows the business owner to get interpretation of the law if he or she does not understand the law fully. An attorney should be used as a last resort or for clarification purposes only as it is expensive for a start-up business. Attorneys are available only when the office is open so this can hinder late night wonders of new law changes.

LEGAL CHANGES A third option to stay current on laws and regulations would be to conduct research on the Internet through government websites both federal and local to ensure that the business is in compliance. Research on the Internet is free for most places; however, some federal and local websites require a membership to view information. The cost of the membership varies on the site and levels of membership (how much one pays and how much one can view) can vary on each site also. This method also can be time-consuming as the entrepreneur will be doing all the research his or herself. Effective and useful information will be given through the government sites so the entrepreneur will receive the information in a timely manner. This method use is appropriate for start-up businesses and continuing education for established businesses. The Internet is available at all hours daily as long as there is service. A fourth option to stay current may include subscribing to mailing lists to view laws and regulations. Subscribing to mailing lists will allow changed and new information to come out to the entrepreneur at set intervals. Mailing lists can be through e-mail or regular mail. E-mail

mailing lists can be done daily whereas regular mailing lists can be monthly, quarterly, or yearly. This is a good option as the entrepreneur can concentrate on running the business as the mailing list comes to him or her and research is not necessary. This is the least time-consuming method available as the entrepreneur can view the information at he or her leisure. This method is good for entrepreneurs who already have done the research and current on the laws and regulations. A fifth option to stay current is to subscribe to magazines that deal with business and business law through the articles. Magazines are good ideas to keep up with the latest trends in the business. Magazines are usually sent out monthly to subscribers and allow the entrepreneur to look at the articles that involve the business at a faster pace than the above methods. The cost of the magazine subscription is all that is necessary for this method. Magazines are an effective

LEGAL CHANGES tool to keep up with trends and what is changing in the business world. An appropriate use for the magazines would also be for an entrepreneur who has already established the appropriate rules and regulations for his or her current business and just needs updates. Conclusion A business no matter how large or small must stay current on laws and regulations to avoid fines, reprimands, and closure of the business. There are many ways to stay current on the new or changing laws and regulations at the federal, state, and city levels. Businesses must follow safety laws set forth by OSHA or the local chapter of OSHA such as IOSHA in Indiana. Businesses must also follow employment and other labor laws as they apply to the business. A business of 20 or more employees may have to follow more regulations than a business of 15 or fewer employees. The larger the business the more rules and regulations one must follow and offer different benefits to employees.

LEGAL CHANGES References Department of Labor. (2005). Office of the Assistant Secretary for Administration and Management. Retrieved from United States Department of Labor: http://www.dol.gov/oasam/foia/DLMS-Chapters/dlms4-0306.htm#306 Department of Labor. (2012). Youth and Labor. Retrieved from United States Department of Labor: http://www.dol.gov/dol/topic/youthlabor/index.htm FindLaw. (2012). Employment and Anti-Discrimination Laws: An Introduction. Retrieved from FindLaw: http://smallbusiness.findlaw.com/employment-law-and-humanresources/employment-and-anti-discrimination-laws-an-introduction.html IOSHA. (2012). IOSHA home. Retrieved from Indiana Department of Labor: http://www.in.gov/dol/iosha.htm OSHA. (2012). Indiana Plan. Retrieved from OSHA: http://www.osha.gov/dcsp/osp/stateprogs/indiana.html OSHA. (2012). Q&A's for Small Business Employers. Retrieved from OSHA: http://www.osha.gov/Publications/OSHA3163/osha3163.html