FAQ: Employment & Labor Law for Small Businesses

Should my small business be concerned with employment and labor law?

Yes. Many laws apply even if your small business only has one employee. Once your business hits five employees most major employment and labor laws apply. Even micro businesses in California are subject to employee claims.

“What kinds of employment and labor laws apply to my business?”

Employment and labor law affects a small business throughout its life cycle: the choice of using “employees” or “independent contractors,” the interview and hiring process, the orientation process, the day to day supervision and management, payment of wages, employee leaves of absence, performance reviews, termination (voluntary or involuntary) and post termination. Federal and state labor relations laws govern your business every step of the way.

“But my business is small. Do all of these laws really apply to me?”

Maybe not. But some of them likely will. In California, the following applies:

• One employee: Workers’ compensation, wage and hour laws, unlawful harassment, common law wrongful discharge, many “whistle blowing” termination claims, and other common law claims such as violation of privacy, fraud, defamation, negligent hiring, and negligent supervision and workers’ compensation
• Five or more employees: Fair Employment & Housing Act applies (anti-discrimination law based on protected classes of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic characteristic, age, marital status, sex (including pregnancy), and sexual orientation)
• Applies with 15 or more employees: Federal anti-discrimination and unlawful harassment law, including Title VII of the Civil Rights Act of 1964 and Americans with Disabilities Act (ADA) (state discrimination laws may apply with less employees)
• Applies with 20 or more employees: Federal Age Discrimination in Employment Act (ADEA) (state discrimination laws may apply with less employees)
• May apply with various number of employees: Miscellaneous leave laws (like military leave, pregnancy leave, voting leave, domestic violence leaves, various parental leaves relating to care of minors, volunteer emergency services leaves, adult literacy, drug and alcohol rehabilitation related leaves, etc.)
• Applies with 50 or more employees: Family and Medical Leave Act (FMLA) mandatory time off for “serious health conditions”
• Applies with 100 or more employees: Worker Adjustment and Retraining Notification Act (WARN) “mass layoff law”

“Is my business required by law to have an employee handbook?”

No. But if you want protection against employee lawsuits, you might want to consider one. Why? An employee handbook is your first line of defense. You get to set your rules as they relate to your employees. On the flip side, if you have one you need to make sure you consistently follow your own rules.

“What are the most common employment and labor problems facing small business today?”

In our attorneys’ experience, the most common legal challenges facing small businesses and entrepreneurs are:

• Independent contractor status
• Wage and hour
• Employee leaves
• Misappropriation of trade secrets and unfair competition
• Day to day management of employees and how to terminate ineffective or insubordinate employees without creating legal liability.

For more information, download our free report: “Top 10 Employee Lawsuits that can Be Prevented.”

“What can be done to avoid employee problems and lawsuits?”

At Vision Law, our business lawyers are firm believers that a small business, unlike a Fortune 500 company, cannot afford to have ineffective employees. The infection of a single employee with a bad attitude or who doesn’t pull their own weight multiplies much quicker and causes more severe damage to a small business. For timely and accurate advice to prevent employee problems for a flat monthly fee, see Vision Law’s Innovative small business legal solutions.

“Do I need an employment and labor law attorney?”

That’s up to you. As an entrepreneur you understand risk and cost/benefit. You also know your business and employees the best.

If you are concerned about one or more potential “problem child” employees, or your employee issues are keeping you awake at night, that’s probably a sign you need “professional help.” Let’s face it, you are an expert in your industry or field of expertise, otherwise you would not be a successful entrepreneur and business person. But you can’t know everything. Or perhaps you simply don’t want to know everything, especially when it comes to employment and labor law. That’s what you hire outside counsel for. And that’s why we created our innovative small business legal solutions.

“But I hear attorney’s fees are outrageous, how can my small business afford one?”

They are outrageous! That’s one of the major reasons Vision Law Corporation® was founded and focuses on small business.

While it’s true large national law firms—usually reserved for only the Fortune 500—charge by the hour, sometimes $400-600 per hour, we do things differently at Vision Law Corporation®. We offer Fortune 500 quality preventive advice and litigation defense at a price our small business clients can afford.

• See the Business Journal article “Talk Isn’t Cheap – But Smart Employers Can Still Find Less Expensive Counsel In A High-Priced Market.”

While we offer traditional hourly rates, that are substantially less than large national firms with equivalent expertise, we also offer three patent pending programs that make employment and labor law legal services available and affordable to small business. For more information see our Legal Solutions.

“What can Vision Law’s attorneys do For my small business?”

We can offer preventive advice and help through our small business legal programs and then share in your risk in the event your business is sued. It’s like having Fortune 500 quality counsel in your back pocket anytime one of your employees has their attorney on speed dial.

For more information about our affordable employment and labor law solutions, download our complimentary report: Employment and Labor Law Solutions for Small Business. Also see the Business Journal article “Talk Isn’t Cheap – But Smart Employers Can Still Find Less Expensive Counsel In A High-Priced Market.”

Vision Law Corporation® believes employers can save time, money, and unnecessary disruption to their business through effective, proactive efforts. That is why we have created our innovative fee program for small businesses. We invite you to consider how cost-effective representation could save your company millions, or simply save your company.

Contact Us

For a consultation with a California employment lawyer at Vision Law Corporation®, call 916-780-1920, or contact us online.