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NATIONAL CENTER FOR POLICY ANALYSIS
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| Making Sense of Employment Laws |
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Due to the tangle of government rules and regulations, being an employer is risky business, says Richard W. Rahn (Discovery Institute). For example,
- An employer who unknowingly violates the "Fair Labor Standards Act" can be fined or even go to jail.
- Under the antimoney laundering laws, a bank president can be jailed because a young teller in a faraway branch office inadvertently opens an account for an individual whose money came from a nonconvicted criminal.
- The CEO of a manufacturing company can be charged under the anti-discrimination laws because one of his or her employees in a distant plant told an off-color joke to some other employee.
Employers are also liable to be civilly sued for violating government regulations. For example, tour operators are the target of some six class-action suits regarding overtime pay. A second example is when an employee is required to be paid overtime. Some tour directors claim they were not paid "overtime" because they say they are really on 24-hour duty. But being available to assist tourists is a job requirement, and they were free to negotiate higher pay in return.
Source: Richard W. Rahn, "Regulations that inhibit hiring," Washington Times, July 18, 2003.
For text http://dynamic.washtimes.com/print_story.cfm?StoryID=20030717-081242-1839r
For more on Employment Law http://www.ncpa.org/iss/leg/
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