When hiring and onboarding employees it is very important to comply with labor and employment law regulations.

We give you five important factors which should be kept in mind when onboarding your first employees.

1.Employment Agreements

In the majority of the states, it is considered that employment is done ‘at-will. This provides provisions for the termination of employment by either employer or employee at any given time without any particular reason.

In practice, the ‘at-will’ doctrine is written away and certain conditions are incorporated, one such condition is the establishment of a cause for the employment termination. This approach is utilized as an approach to extend a level of job security in return for certain business performance outcomes. This is commonly seen in higher-level managerial positions at large scale cooperation. In the case of small businesses, it is important that you stick to the right to practice the ‘at-will’ doctrine.

2.Pay Requirements: Exempt v/s Non- Exempt Employees

Remember you are required by the Fair Labor Standards Act (FLSA) to provide overtime payments unless your employees classify to exempt employees due to the nature of their job, and they receive a minimum salary of  $23,600 per year or $455 per week.

But it is also to keep in mind that certain states possess wage and hour requirements which are much stricter than the federal regulations. It is your responsibility as an employer with the wage and hour regulations.

3.New Hire Forms

Following the hiring of an employee, it is mandatory to complete a Form W-4 (or a similar state-level document) to initiate their income tax withholding. PEO organizations such as MidtownHR offer this function to be done electronically and it is integrated into the payroll handling system.

4.I-9s

I-9 Forms are utilized for the purpose of identity verification and employment authorization for all individuals who are hired for the purpose of employment in the United States of America. The form is applicable for all employees, with no exemptions. I-9 document requires the employee to provide documents authenticating the identity and approval to engage in work within the US. This service is offered by the majority of the PEOs such as MidtownHR.

5.Set up the employees’ personnel files

• Maintain medical records in a sealed cabinet to ensure confidentiality
• Keep I-9 records separately
• Maintain a separate file for the resume, employment offer, and W4 documents of the employee.