Employment Law Compliance Plan
Byron S. Salter
April 13, 2015
Dr. Deborah Burgess
TO: Traci Goldman
FROM: Byron S. Salter
DATE: April 12, 2015
Subject: Employment Law Compliance Plan
Per your request, I was delegated the duty of developing the Employment Law Compliance Plan for Bradley Stonefield and his limousine company. Based on the meeting notes, Mr. Stonefield wants to operate a limousine company in Austin, Texas and to have at least 25 employees working for him within the first year. To ensure the success of Mr. Stonefield’s business, I have developed an employment law compliance plan that he should follow.
This communication serves as confirmation of the employment laws that are relevant to Mr. Stonefield’s business. It will also provide how the employment laws should be executed and the consequences of noncompliance. This memo will give information regarding federal employment laws and regulations specific to Texas. The laws that will be discussed are The Texas Minimum Wage Law, The Age Discrimination in Employment Act of 1967, The American with Disabilities Act of 1990, and the Immigration Reform and Control Act of 1986.
The Texas Minimum Wage Law
Texas implemented the federal minimum wage rate of $7.25 per hour in July 24, 2009. Another provision of the law allows automatic increases in the minimum wage amount when the rate of the federal rate increases. The law also mandates employers provide its employees a paycheck statement, which shows the number of hours an employee has worked (including overtime), the amount of pay they received, and any deductions. The Texas Minimum Wage Law aims to ensure that all employees are treated fairly and equally, regardless of where he or she may fall on the pay scale.
Mr. Stonefield’s limousine company can comply with the Texas Minimum Wage Law by ensuring payroll is processed correctly. Additionally, the company should save records of all payroll, for the mandated period, for future references and ensure that the pay rates comply with the minimum wage law. Mr. Stonefield can purchase payroll specific software and individuals skilled in payroll processing to ensure compliance. The Texas Department of Labor enforces the Texas Minimum Wage Law. Individuals of the department of labor audit businesses to confirm the business is operating according to this law. If a business is found to be noncompliant, they could be fined up to $10,000.00 and criminally prosecuted. If the business is in violation for a second time, the business owner may be imprisoned. Penalties of up to $1,100.00 per violation can be executed to employers and businesses who repeatedly violate the minimum age requirement.
The Age Discrimination in Employment Act of 1967
The Age Discrimination in Employment Act of 1967 prohibits discrimination in benefits, salary, and employment for employees who are age 40 and over. However, if the employer can validate that age is an occupational qualification, this law would not apply. The law is administered and executed by the Equal Employment Opportunity Commission (EEOC) and “[a] key objective of the law is to prevent financially troubled companies from singling out older employees when there are cutbacks” (Cascio, 2013, p. 109).
To comply with the Age Discrimination in Employment Act, Mr. Stonefield’s limousine company cannot deny employment or terminate an employee over age if the employee is of the age of 40 and over. However, if an individual lacks necessary skill functions or has poor performance, who happens to be the age of 40 or over, the company is within its limits to terminate the employee. Because age is not a determining factor, the company is justified in terminating the employee.
Noncompliance of the Age Discrimination in Employment Act can cause extensive financial damage to a company. A victim of age discrimination can obtain compensation, including...
References: Equal Employment Opportunity Commission, 2013. Retrieved from http://www.eeoc.gov/eeoc/history/35th/1990s/ada.html
Cascio, W. F. (2013). Managing Human Resources; Productivity, Quality of Work Life, Profits. McGraw-Hill.
Solís, Dianne. (23 September 2013). Illegal immigration into Texas increasing slowly, says Pew Research Center. Retrieved from http://www.dallasnews.com/news/state/headlines/20130923-illegal-immigration-into-texas-increasing-slowly-says-pew-research-center.ece
State of Texas: Office of the Governor. (n.d.). Employment Protections. Retrieved from http://gov.texas.gov/disabilities/resources/employment_protections
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