The Legalities of Hiring an Employee: What You Need to Know

Brad Smith • Mar 29, 2022

Hiring an employee is a big decision. A bad hire can cause your business to lose money and time. That’s why it’s so important to hire the right person.

This article will teach you everything you need to know about hiring, firing, and dealing with legalities in the workplace.


From understanding what kind of benefits your new employees need, to what kinds of rules they should follow, this article will get you ready for managing an entire team of people.

What to Consider Before Hiring Staff

Before you hire a new employee, there are some things you need to consider:


For example, make sure that the candidate is qualified for the job. You don’t want them to come in and not be able to perform their duties because they lack the necessary skills.


Also, it’s important to know what benefits your new employees need before hiring them. This way, you can make sure to offer them the benefits that best suit their needs. For example, if you have a more physical job, then your employee may need around-the-clock medical care or paid leave for injuries sustained on the job.

Types of Employees

There are two types of employees to consider when hiring:


The first type is a full-time employee. A full-time employee is someone who works at your business at least 30 hours per week.


The second type of employee is a part-time employee. A part-time employee usually works at your business fewer than 30 hours per week.

A full-time employee will cost you more in terms of salary and benefits, but they also offer more stability for your business.



Part-time employees are typically less expensive, but they can be more challenging to schedule, which means you may have to replace them when their availability changes, or find someone else to fill those shifts. Part-time employees are also not eligible for some benefits packages that a full-time employee would be eligible for, like health insurance and retirement plans.

Types of Job Positions

The type of job positions your business has will determine what kind of staff you need to hire. Some businesses, like retail businesses, only require one or two employees. Other businesses, like a law office, might have dozens of employees and a wide variety of job positions.


When it comes to finding the right employees for your business, it’s important to know what kind of jobs you need filled. Do you need someone who is highly skilled in customer service? Or do you need someone who can work on a team with other people?

Benefits And Wages

You should always have a standard job description in place before interviewing potential employees. This will help you weed out the bad apples and make sure you hire someone who is qualified for the position. It also helps with future decisions like firing.

 

Employers are required to provide all employees with a wage, but it's the employer's choice whether they pay their employees on an hourly or salary basis.

 

Hourly Wage:

Employers must pay their hourly workers a minimum wage set by federal law.


Salary Basis:

Employers can choose to pay their full-time employees on a salary basis of up to $455 per week (or $23,660 annually), as long as the employee earns at least $913 per week (or $47,476 annually).

Hiring Process

There are several steps you need to take to hire someone. The first thing you will have to do is post your position. This can be done in one of two ways: by looking for a job listing on a website or by posting it on social media. You will want to be very specific about the position and what qualifications are needed for the person who will fill the position.

The Employment Contract

When you hire a new employee, you’ll want to put them on the company's payroll. This is done with an employment contract. An employment contract outlines the terms of employment and is legally binding. If a new employee quits before their contract expires, they could still be liable for damages, like loss of business or wages. To avoid this, include a clause in your employment contract that states that if the employee quits prior to the contract expiring, they will have to pay back any damage caused by their departure from the company.



An employment contract should also specify things like wages, hours of work, vacation time, and other benefits and perks. When an employee quits before their contract expires, there are often penalties and fees associated with breaking it. Make sure to include those in your contract as well!

Dealing With Employee Issues

No business is perfect. Every once in a while you’ll come across an employee who isn’t performing up to standards. There are many ways to deal with these types of employees, from firing them, to providing guidance and training.

Conclusion

Whether you want to hire someone part-time or full-time, it is important to prepare a job description and set the correct salary. By following this guide, you can avoid any legal issues that may arise.

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Whether you're ready to schedule a strategy session to discuss your specific needs or if you're interested in exploring our wide range of complimentary guides and additional resources, we encourage you to get in touch with us.


With licensed attorneys and offices located in both Illinois and Missouri, we are well-equipped to serve clients in these regions. Reach out to us today and let us leverage our expertise and care to guide you through the legal process.

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