Remaining compliant with all applicable employment laws is a top concern for Colorado business owners. Failure to do so can lead to many serious consequences, and may even put the success of your commercial enterprise in jeopardy. The right information can help business owners stay in tune with both state and federal laws, and ensure their employees remain satisfied.
The U.S. Small Business Association shares some essential tips on what business owners should steer clear of when it comes to employment law violations. Employee designations are just one concern which could potentially land a business in hot water if handled incorrectly. Some employers categorize workers as independent contractors, which removes their right to things like disability benefits and overtime pay. If an employee disputes this designation and is found to be in the right, he or she may be able to sue to the employer for lost wages.
Employee exemptions are another common legal issue. According to the Fair Labor and Standards Act, certain workers must receive overtime pay and be provided breaks for meals and rest. Other workers may be classed as exempt, which means employers are not obligated to provide these benefits. It's imperative that business owners assign the correct status to their workers to prevent legal fallout from occurring, and the criteria for determining who is and is not exempt can vary greatly from state to state.
As stated by the Colorado Department of Labor and employment, exemptions are divided into two separate categories. Overtime exemptions include transportation workers in the medical industry who meet specific criteria regarding hours worked. Employees who earn a sales commission that is 1.5 times greater than the prevailing minimum wage and more than 50 percent of their wage is derived from commission are also exempt. Wage order exemptions also exist, and these include executive and administrative professionals, work study students and live-in domestic employees (among many o