Properly managing your workforce is one of the bigger challenges of running a business. Just one seemingly small employment mistake could potentially result in substantial financial losses. While employment law for employers is a complex subject, you can generally break it down into two golden rules:
Be fair.
Be consistent.
Many employers get into hot water when they’re inconsistent in how they treat their employees, or they don’t act fair in how they go about running their business.
Read on for employment law advice and to learn some of the more common aspects of employment law for Virginia employers.
What Are The Basics When Hiring New Employees?
Generally speaking, and depending on how many employees you have, all companies must have their employment paperwork in order regardless of how big or small they are. This includes:
- Getting an EIN and Employee ID Number from the IRS
- Preparing W-4 forms
- Reporting new hires to the state within 20 days of hire
There is a vast treasure trove of resources on the internet for new employers to make sure that they’re getting all their initial paperwork set up correctly:
- Virginia Employment Commission
- Virginia Workforce Connection
- Small Business Administration (they have an office in downtown Richmond)
- Virginia Chamber of Commerce
- Greater Richmond Small Business Development Center
- Local county resources (i.e., Chesterfield County, Henrico County)
Employee Handbook
Every Virginia business should have an employee handbook that spells out company policies and guidelines and allows them to keep things level and fair with all employees. It’s also a valuable tool in claims of a willful violation. Your employee handbook should include:
- Standard EOC guidelines
- Benefits policies
- Background check and drug testing policies
- Discipline policies (drug and alcohol, attendance, etc.) Most companies use a progressive discipline policy because it allows them to show proof of misconduct before terminating employees.
Workplace safety information - Company property information (i.e., damaged uniforms)
Important note for handbooks: You must make it very clear in the beginning that Virginia is an employment-at-will state. It also needs to say at the very front of the book that it isn’t a binding document and can be altered at any time.
Worker’s Compensation Insurance
If you are an employer who regularly employs three or more full or part-time employees, you must purchase and maintain workers’ compensation insurance if one of your employees is injured on the job.
If you need more information, contact the Virginia Workers’ Compensation Commission. They will inform you of what you, as an employer, need to do to remain compliant with the workers’ comp laws.
Additional Insurance
If you’re setting up a company, you should incorporate as a limited liability company (LLC) or speak to a corporate lawyer about establishing yourself as a corporate entity. This protects against any personal liability. When it comes to additional insurance, you should purchase general liability insurance on the business and any other entities such as vehicles or office space.
Important note: Even if you are insulated from personal liability, if you don’t set your insurance up correctly and don’t follow corporate formalities, your personal assets can still be at risk.
Background Checks
As an employer, you should run a background check on every single new employee that you hire. Do not rely on cheap internet background check websites—as you get what you pay for.
Instead, select an agency that has an excellent reputation and offers a more comprehensive report.
If the new hire will be using a company vehicle, you’ll want to get a DMV background check. It’s also strongly recommended that you perform a credit check for those who will be handling company funds.
General Employment Law Advice & Tips
Here are some basic, general things that all Virginia employers should understand about the law:
- The Department of Labor has great online resources in regards to the federal law that employers can use. There is some excellent information about the Fair Labor Standards Act and how to correctly classify employees and avoid class action overtime claims.
- You must give employees a Cobra notice that notifies them of their right to stay on health insurance when they leave employment.
- Many companies get into hot water with OSHA for not following state or federal safety guidelines. All you have to do to combat this is contact OSHA, and they’ll come out to train your employees.
- The guidelines and penalties for many federal laws can vary greatly depending on the number of employees you have.
Employee Management Advice & Tips
In addition to the two golden rules of “be fair” and “be consistent,” there are a few other general management tips once the employee starts working for you:
Set clear expectations—This helps prevent misunderstandings and confusion. It’s better to take the time to spell something out than assume the employee understands fully.
Provide feedback regularly—In addition to covering yourself, you’re also providing the employee with valuable information regarding their performance. When done constructively, it can help the employee develop and grow.
Conduct annual check-ups—Also, have employees sign a statement that they haven’t witnessed any discrimination or harassment in the workplace.
Consistently request feedback on how you can improve—In addition to asking verbally, you can also notify your employees via a paper trail (printed document or card) or an email regarding your request for their feedback on how you can improve.
Virginia Employment Law Center
We hope we’ve provided you with some helpful tips and insights into the often complex world of employment law for employers.
If you have any questions regarding the above advice or would like to speak to someone in our law center, please call us or request a consultation by clicking below.