When you hire employees to work for your business, it’s important to understand the many states
and federal laws and regulations for employers. In this article, I’m going to briefly introduce some of those laws and regulations, and I’ve divided them into three categories.
The first category is the employer’s obligations to the state and federal government.
These include filings and taxes.
The second category is the employer’s obligations to the employee.
These include non-discrimination, notices, workplace safety, compensation, and employee
The third category is the employer’s obligations to everyone else.
These include the employer’s duty of care when hiring, supervising, training, and retaining
So, what are some of the employer’s obligations to the state and federal government?
Well, Texas requires employers to report all new hires to the Texas Attorney General’s
This allows the Attorney General to locate employees who have child support obligations.
Texas also requires employers to pay an unemployment tax that’s based on a percentage of the employee’s
The federal government requires all employers to verify an employee’s eligibility to work in the United States using the I- form and eVerify system.
The federal government also requires employers to pay employment taxes as well as withholding
the employee’s taxes.
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So, what are some of the employer’s obligations to its employee.
First, the employer cannot discriminate against an employee or job applicant based on that person’s race, religion, sex, marital status, nationality, age, disability, and a number of other factors that have nothing to do with that person’s ability to perform the job the company is hiring them to do.
Second, the employer is required to give the employee certain notices.
Some of these notices have to be given to each employee individually.
Other notices have to be posted somewhere where the employees can see them on a regular
Third, employees are entitled to a safe working environment.
Both state and federal agencies regulate workplace safety and related to workplace safety is worker’s compensation insurance.
Texas does not require employers to carry workers’ compensation insurance.
However, there are significant legal incentives for carrying it, and I always recommend employers
carry workers’ compensation insurance.
Fourth, employees are entitled to a fair wage.
Now, some employees are exempt from the minimum wage standard.
However, these employees are typically for professional services like doctors and lawyers.
Texas law also regulates when employers are required to pay their employees, and this is typically on either a bi-weekly or semi-monthly basis.
Texas law also covers what deductions can and cannot be made from an employee’s wages.
And fifth, federal law covers in great detail requirements for employee benefit programs.
Chances are if you offer an employee benefit program it is being administered by another
However, it is still important for you, the employer, to understand what the rules are.
And finally, what are some of an employer’s obligations to everyone else?
Employers have a duty of ordinary care when hiring, supervising, training, and retaining employees.
If an employer breaches this duty of care and an employee causes personal injury or property damage while on the job, the employer can face potential liability for those damages.
Some examples of breaching this duty include allowing employees to handle food when that employee hasn’t been properly certified and trained on safe food handling techniques or, allowing an employee to make deliveries to people’s homes before completing a criminal background check on that employee or allowing an employee to operate equipment when that employee hasn’t been properly trained.