Employment laws cover a wide range of topics and employers often find it difficult to keep track of all the new laws and changes. Frequently, employers discover they have been breaking employment laws without even realizing it.

Five laws unknowingly broken by employers are:

1. Misclassifying Employees as Independent Contractors

Employers do not have to pay independent contractors overtime wages or benefits, and they also don’t have to remit payroll taxes on their earnings. Because of this it can be tempting to label an employee as an independent contractor. However, the government classifies who is an employee and who is a contractor, not the business. Classifying people incorrectly could end in harsh penalties and taxes.

1. Failing to Pay Overtime

Exempt employees are generally paid salary and therefor do not receive overtime pay for working extra hours. However, it is not that straight forward. In certain circumstances and for some salaried employees, employers are required to pay for overtime hours. Employers should check to see if the employee meets the federal salary and job duties requirements to determine whether or not they are exempt from overtime wages.

1. Subtracting Loan Payments from Pay

Small business owners who know their employees well might feel inclined to help them during a rough time by giving them a small loan. Employers should be aware they may not deduct the payments from the employee’s paycheck to repay the loan. Other than taxes and benefits, most states do not permit employers to deduct anything else from paychecks. Instead, create a loan payment schedule with the employee and have an attorney create a promissory note.

1. Firing an Employee for Taking Leave

Employers can legally fire an employee who abuses the vacation policy or is habitually late, but if the employee has to take time off per the Family Medical Leave Act, use military leave, time off to vote, or serve on a jury, they cannot be fired for it. This means even if the leave is disruptive to business operations and costs the business productivity, the employee is protected by employment laws.

1. Refusing to Pay for Rest Breaks

Employers who offer meal breaks don’t have to pay employees for that time away from the job. That time also doesn’t have to be included in the employee’s cumulative time worked. These breaks are at least 30 minutes long. The requirements are different though for short breaks. Short breaks are included in the total time worked, must be paid and employees are entitled to them.

Employers should consult with an in-house attorney when making employment decisions to minimize the chance of violating the laws. InnovaCounsel attorneys have experience dealing with a variety of employment laws from hiring to policy manuals.