To: Traci Goldman
From: Andrea Beckus
Date: April 5, 2014
Subject: Employment Law Compliance Plan
This purpose of this memorandum is to inform Mr. Bradley Stonefield of applicable employment laws prior to the launching of his world class limousine service in Austin, Texas. Mr. Stonefield’s goal is to employ 25 individuals during the first year of business, and his small business requires the adherence of all applicable state, local and federal laws. This memo seeks to inform the client of some of these laws, and the penalties involved in non-compliance of these laws.
I. Texas Payday Law
The Texas Payday Law ensures that people who are considered employees are compensated for services rendered. This law, according to the Texas Workforce Commission, “covers all Texas business entities, regardless of size, except for public employees such as the federal government, the state, or a political subdivision of the state” (Texas Workforce Commission, 2011). Furthermore, this law defines the kinds of payments employers are required to pay, and these include compensation for regular services, bonuses, commissions, and fringe benefits. The Texas Payday Law spells out wage delivery options during an employee’s tenure, as well as rules regarding final pay in the event of termination, layoffs, retirement and resignation. Failure to comply with this law could result in “an administrative penalty against the employer equal to the wages claimed or $1000, whichever is less” (Texas Workforce Commission, 2011).
II. Workers’ Compensation Law
Workers’ compensation benefits cover injuries or illnesses sustained during the course of employment. Texas is one of the few states in which employers can decline to provide workers’ compensation coverage, however, it is in a company’s best interest to offer this benefit to employees. New employees must be informed of their right to waive workers’ compensation benefits within the first five days of employment. They should also be...