08 Dec Employment Law and Why Your Business Needs It
2016 will bring new employment laws, as does every year that affects every business in California. One change for 2016 is California’s new Equal Pay statute at Section 1197.5 of the Labor Code which puts the burden on the employer to prove that a wage differential between jobs by persons of different sexes where they perform “substantially similar work, when viewed as a composite of skill, effort, and responsibility” is based entirely on specific, objective criteria.
Laws regarding hiring and what constitutes a full-time, part-time, or consulting “employee” are all very important come tax time. Knowing when you may have crossed the line on hours can mean the difference between a happy successful thriving business or one who owes the IRS thousands of dollars and looking at a lawsuit. Even large corporations with a team of lawyers like Wal-Mart has had difficulties bringing all of their employees under the right amount of benefit coverage for their hours at work. Money owed to the IRS can under certain circumstances be discharged in bankruptcy. If IRS debt is more than three years old consult MMM.
Working with an attorney from the beginning that understands employment law to establish best practices, as well as, understanding what the various lines are in determining employee types can spare you thousands, if not millions in expenses down the road. Wage and hour claims are among the most commonly litigated claims by employees in California, and they usually triggered by small mistakes easily avoided.
Employment Law Is Worth the Investment
Even small businesses can afford an attorney at the beginning to set their company down on the right path for moving forward. It’s worth the investment and your time.
Unlike other creditors, any money owed to the IRS cannot be dismissed by bankruptcy. This is why it is so important for any small business to ensure that they are doing everything correctly when it comes to tax issues involving their employees.
When you work with us at Miller Miller Menthe LLP, we provide counsel to each and every client, large or small. Whether it’s building a long-term relationship or being available for outside general counsel, be sure your business and employees are all squared away from the start.