How Do Labor Laws Affect Businesses Now? - Essay Sample

Published: 2023-01-28
How Do Labor Laws Affect Businesses Now? - Essay Sample
Type of paper:  Presentation
Categories:  Business ethics Employment law
Pages: 4
Wordcount: 916 words
8 min read

Labor laws are a set of laws relating to the rights and duties of workers. These types of laws are designed to govern the relationship between the employers and the workers while safeguarding both of their interests. In a world which is capitalistic workers are more likely to mistreated and overworked just to meet the needs of greedy individuals. Labor laws thus are in place to prevent mistreatment and keep changing over time to suit different needs. Labor unions have been very instrumental in shaping this law, and today affects business a lot.

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Labor laws have resulted in many businesses having to spend more because of the rise in the minimum wage. Recent labor laws have stipulated the minimum wages a worker should be paid as well as payment for overtime. Businesses thus have to comply with these laws by finding ways to adjust in order to survive in the competitive nature of the state of business while keeping in tab with these laws. This has lowered the productivity of some businesses because they now cannot even request the workers to work overtime since they have to pay (Ashe-Edmunds).

Recent labor laws have also led to many businesses facing a lot of lawsuits and fines because of failure to follow these rules. While the labor laws are meant to protect, both the employer and employee interests' employers face quite a lot of challenges because they continuously face problems from employees, even for minor issues (Ashe-Edmunds). Violating the labor laws can result in hefty fines, thus negatively affecting the business. Businesses can be fined for small mistakes such as failing to post the rights of employees on the places where they are visible. Companies must also learn to treat different groups of employees and avoid any form of treatment that can be termed as discrimination. Today too, businesses cannot just dismiss an employee as they wish they first must comply with labor laws before taking such step or else face litigation.

Labor laws have also affected business since they have resulted in the presence of increased federal activities. Fair labor act, for instance, prohibits any company from taking any tips that have been awarded to its employees regardless of any circumstances. This has resulted in the business has to be kept away from the success of their employees, yet they have played a significant in them being recognized to the extent of being tipped (Paretti and Lotito).

Businesses today also are affected by labor laws such as the tax laws which requires them to decide whether the amount they pay an employee for sexual harassments is worth the tax deduction for them not to disclose the details (Paretti and Lotito). This has put the most business in some compromising positions because some employees might demand a lot of money for them to sign a non-disclosure agreement. In this instance, employers are more likely to negatively affected in case many employees are sexually harassed, and they have to compensate all of them for them to keep their reputation. Furthermore, business today must plan for payroll before hiring of the employees. Essential details such as identification number, local tax ID, and other documents play a crucial in the recruitment process for many businesses. These enable businesses regardless of their size, to be able to file taxes on a quarterly basis.

Another issue about labor laws that impacts on businesses now is the renewed policies to combat illegal immigration. What the labor laws state is that all employees should be treated equally regardless of their immigration status ("How Do Labor Laws Apply to Immigrants?"). Businesses have been in the spotlight of discriminating immigrants based on their skill and lack of documentation. In complying with the tax regulation, today, businesses have also been forced to put out in detail the pay they give to their workers so as to aid in nabbing of illegal immigrants. These actions have given businesses more duties of screening employees before hiring, thus making the recruitment process very expensive.

Business, however, has not only had negative coming to them because of these laws, but they have also experienced something positive for those who have implemented labor laws effectively. Due to these laws, the majority of businesses have been able to retain employees and make the best out of them because they are happy. Through these labor laws, employees have gotten better pay and better treatment from various business who have then reaped the benefits of individuals who enjoy their jobs. Consequently, companies which have failed to implement labor laws fully have gotten a bad reputation and a result do not attract competent employees.

Labor laws today also have also contributed to the success of many businesses. What they have done is to create a meaningful relationship between employers and employees. When employees are treated well, they all strive to ensure that they meet the goals set to them by their employers. By achieving the objectives of the business, employees facilitate the success of the business. Labor laws have also resulted in the business coming up with initiatives to improve the skills of their employees in order for them to be able to be productive.

Works Cited

Ashe-Edmunds, Sam. "The Effects Of Labor Laws." Bizfluent. N.p., 2019. Web. 20 July 2019.

"How Do Labor Laws Apply To Immigrants?." American Civil Liberties Union. N.p., 2019. Web. 20 July 2019.

Paretti, Jr. James, and Michael Lotito. "Here's A Summary Of Key Labor And Employment Laws Taking Effect In 2019." TLNT. N.p., 2019. Web. 20 July 2019.

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