For many first-time franchisee’s, dealing with employee-related issues will be the greatest challenge they initially face. Many will find that keeping their employees coming to work on time will be more difficult than obtaining financing or attracting customers. Other first-time employers will be shocked to see the degree of government regulations with which they are forced to comply. Having an effective employee incentive program can help to attract and retain key employees that enthusiastically help you to build your business and it is up to you, the employer, to stay in compliance with all the applicable local labor laws.
In addition to attracting and maintaining employees, a franchisee employer is responsible for understanding and complying with the labor laws that apply to the country and state where they are operating.
Minimum Wage Laws
A franchisee is responsible for paying their employees in accordance with local minimum wage laws. In the United States, the current minimum wage is $7.25 per hour. Employees cannot be forced or coerced to work unpaid hours as a condition of employment. – https://www.dol.gov/compliance/guide/minwage.htm
Working Conditions
The Fair Labor Standards Act (FLSA), applies to most US companies and outlines the minimum working condition requirements companies are responsible for maintaining. – https://www.dol.gov/whd/flsa/
Requests for Maternity Leave –
The Family and Medical Leave Act describes the amount of time, up to 12 work weeks, that an employer must allow an employee for maternity and other medical conditions. – https://www.dol.gov/whd/regs/compliance/1421.htm
Employees with Disabilities
The Americans with Disabilities Act of 1990 (ADA), makes it unlawful to discriminate in employment against a qualified individual with a disability. – https://www.eeoc.gov/facts/ada18.html
At the franchise law firm of Mario L. Herman, we work with franchisees to advise them on their compliance with employee rights and regulation issues. Call us today.