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Laws That Apply to Your Organization

Business laws are frequently misunderstood and at times overlooked; however, as an owner of a company it is crucial to be aware of all laws that are applicable to your organization. Both labor and employment laws vary depending on the number of employees a company has. For instance, smaller businesses, which have less fifty employees, are treated differently in the eyes of the law than large businesses.

Here are five common employment laws relevant to organizations of any-size, including those with only a few employees:

  1. Disability Insurance

  2. Workers’ Compensation

  3. Immigration Reform and Control Act

  4. Fair Employment and Housing Act

  5. Employee Safety (Occupational Safety and Health Act)

Disability Insurance

Employers by California state law are required to withhold and dispatch State Disability Insurance allowances. Employers are also required to inform their employees of State Disability Insurance benefits through the displaying of posters or distributing pamphlets covering this information. It is especially important to notify new-hires of State Disability Insurance, in addition to those employees taking an extended period of time off for pregnancy, childbirth, illness or injury. You can inform those employees of the details through the “Disability Insurance Provisions” brochure.  Employers can order, or download and print both the posters and pamphlets at no cost through the State of California Employee Development Department. Click here to be directed to the form to do so.

Workers’ Compensation

Whether your company only has one employee or five-hundred, you are required as a California employer to carry workers’ compensation insurance. If one of your workers was to fall ill or get hurt on the job, the company will be liable to pay for both their medical care and compensation benefits. However, having this insurance will cover medical care and various disability benefits that may be needed by the employee. This compensation insurance program is based on fairness and compromise between the employer and the employee. The employee is not allowed to sue the employer for his/her injury as a result of receiving covered medical care for any injuries or illnesses that happened on the job.

Immigration Reform and Control Act

In the processing of hiring employees, your company must comply with the Immigration Reform and Control Act (IRCA). This means you cannot hire an individual who is not legally allowed to work in the United States. Furthermore, you are required by law to validate and confirm employment eligibility of all prospective employees. In addition, the IRCA forbids discrimination from taking place in the hiring and termination of an individual based on his/ her citizenship status and ethnicity. However, this provision is only applicable to an employer with a minimum of four employees.

Fair Employment and Housing Act

The intent of this act is to protect individuals with disabilities in their workplace, as well as grant them equal access and opportunities to employment. Under the Fair Employment and Housing Act (FEHA), disabilities can be considered physical and mental, while some medical conditions are also covered. As a California employer, you are required under this act to supply reasonable accommodation for those affected by their disability and are consequently unable to perform the key job tasks and functions. In addition, you need to give job applicants and current employees, that are in need of reasonable accommodation, a timely and good-faith interactive process. To learn more about the details of FEHA and what specifics the law entails, click here.

Employee Safety (Occupational Safety and Health Act)

As an employer, you have the right to provide safe and healthful working conditions to all of your employees under the Occupational Safety and Health Act. It is your responsibility to your company and its employees to inspect workplaces, fix unsafe conditions and identify hazards. This can be completed through posting warning signs and communicating with employees about safety and health requirements. Furthermore, it is recommended to have a company-wide Injury and Illness Prevention Program that is updated and discussed every six to twelve months. If your organization has greater than eleven employees, you should keep note of injuries and illnesses that are work-related.

We recommend that employers utilize and become familiar with the State of California’s web pages for the specific employment departments in order to learn more about labor and employment laws. To find out which specific laws are applicable to your business based on the number of employees you have, click here.

If you would like more information about any of the laws that apply to your specific organization, please contact our office today at or (530) 217-3520.

This blog and the website is made available by both the lawyer or law firm publisher is for educational purposes and only to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog and/or website you understand that there is no attorney-client relationship between you and the publisher of the blog and/or website. The blog and/or website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.


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