Compliance and Legal

In this area you will find articles unique the legal and compliance challenges companies face today. Learn methods of prevention, risk management and safety for your business.
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Background, Reference Checks, Consumer Reports do you understand your obligations?

FTC

Your company has job vacancies to fill. You're also thinking about promoting some employees from within the company. You've winnowed down the stack of applications and resumes and want to run background checks through a third party company who is in the business of compiling background information.

Employment background checks also are known as consumer reports. They can include information from a variety of sources, including credit reports and criminal records.

Under the NLRB’s Newly Proposed Rule, Employers Must Post a Notice of Employee Rights Under the NLRA

Chris Johlie and Josh Meeuwse

The Chairperson of the National Labor Relations Board (NLRB), Wilma Liebman, promised that under her leadership, the NLRB would actively reach out to inform employees of their rights under the National Labor Relations Act (NLRA). Chairperson Leibman has said that the NLRB would especially target younger employees, and suggested that younger employees would have a higher unionization rate if they knew their rights.

But I Signed An Independent Contractor Agreement

Patrick Kitchin

The Ninth Circuit Court of Appeals Weighs In On Workforce Classification Under California Law

Every time I review an independent contractor agreement I find myself humming George and Ira Gershwin’s song, It Ain’t Necessarily So from Porgy and Bess. In California, at least, such agreements do not prove that a worker is an independent contractor.

Complying with the Fair Credit Reporting Act (FCRA) in Four Easy Steps

Lester S. Rosen

Quick summary:

Under the federal Fair Credit Reporting Act (FCRA), an employer has legal responsibilities regarding adverse action notices where a consumer report, in whole or in part results in an employer making a determination that they intend to take an adverse action in regards to employment, such as not hiring a person, or not retaining, not reassigning or not promoting. The required notices must include:

Independent Contractor (Self-Employed) or Employee? Still Confused?

IRS

It is critical that you, the business owner, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.

Job Applicant Rejection Letter Dos and Donts — Writing an Appropriate “Dear John” Letter to an Unsuccessful Applicant

George Lenard

Back in 2006, we covered the topic of applicant rejection letters in a post linking to an article in Assessment Council News (Considerations in Rejecting Applicants, on p.4). Since today’s economy is resulting in more applications — and thus more rejected job applicants — we decided to give the topic another look.