Legal Representation For Your Employment Law Needs

Employers in the United States have several legal concerns related to compliance with wage laws, payroll taxes, discrimination, fair labor compliance, and much more. That is why Atom Law Group is here to represent your business.

Wages Compensation

  • Minimum wage: Employers must pay their employees at least the minimum wage set by federal or state laws.
  • Overtime pay: Employers must pay eligible employees time-and-a-half for any hours worked over 40 in a workweek.
  • Recordkeeping: Employers must keep accurate records of hours worked, pay rates, and other information related to employee compensation.
  • Classification of employees: Employers must properly classify employees as exempt or non-exempt from overtime pay in accordance with the Fair Labor Standards Act (FLSA) and state laws.
  • Payroll taxes: Employers are responsible for withholding and depositing payroll taxes from employee paychecks.
  • Discrimination: Employers cannot discriminate in pay on the basis of race, gender, national origin, age, or other protected characteristics.
  • Fair Labor Standards Act (FLSA) compliance: Employers must comply with the federal regulations and guidelines set out by the FLSA, which governs minimum wage and overtime pay.


Violation of any of these laws can result in legal action and penalties, including fines and back pay for affected employees.

In the United States, most employees must be paid by wages. Under the Fair Labor Standards Act (FLSA), employers are required to pay their employees at least the federal minimum wage for all hours worked, as well as overtime pay for any hours worked over 40 in a workweek.

This applies to all employees, including full-time, part-time, temporary, and seasonal workers. Some employees, known as exempt employees, may not be eligible for overtime pay, but they still must be paid at least the minimum wage. Exempt employees typically include executive, administrative, and professional employees, as well as certain salespeople and computer professionals.

However, there are some exceptions to this rule. Independent contractors, for example, are not considered employees under the FLSA and are not entitled to minimum wage or overtime pay. 

Salary Compensation

In the United States, certain types of employees can be paid by salary rather than by hourly wages. These employees are known as "exempt" employees, and they are exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA).

The Following Types of Employees May Be Considered Exempt and Eligible to Be Paid a Salary:

Executive employees: Employees who manage a business or a department within a business and have the authority to hire and fire other employees.

Administrative employees: Employees who perform non-manual work that is directly related to the management or general business operations of the employer and who exercise discretion and independent judgment in their work.


Professional employees: Employees who perform work that requires advanced knowledge in a field of science or learning and who exercise discretion and independent judgment in their work. This includes doctors, lawyers, engineers, and teachers.

Sales employees: Employees who are primarily engaged in outside sales, meaning they make sales away from the employer's place of business.

Please note that exemption rules are complex, and the classification of an employee as exempt or non-exempt depends on the specific facts of their job duties, salary, and working conditions. Employers are responsible for correctly classifying their employees and must pay them accordingly.

The Difference in Independent Contractors and Employees

Independent contractors and employees are different types of workers, and they are treated differently under the law. The main differences between the two are:

  • Control: Independent contractors are not controlled by the employer in terms of when, where, and how they perform their work, while employees are subject to the control and direction of the employer.
  • Tax liability: Independent contractors are responsible for their own taxes, while employees have taxes withheld from their paychecks by the employer.
  • Benefits: Independent contractors are not eligible for benefits such as health insurance, vacation pay, and retirement plans, which are typically provided to employees.
  • Right to terminate: Independent contractors can terminate their relationship with the employer at any time, while employees can only be terminated for cause or with notice.
  • Independent business: Independent contractors typically have their own business and may provide services to multiple clients, while employees are typically only affiliated with one employer.

When Deciding How to Classify a Worker, Employers Should Consider the Following Factors

  • Behavioral control: Does the employer control or have the right to control what the worker does and how the worker does the job?
  • Financial control: Does the employer control the financial aspects of the worker's job, such as how the worker is paid, whether expenses are reimbursed, and who provides the tools and equipment?
  • Relationship: Are there written contracts or employee benefits, such as a pension plan, vacation pay, or insurance?
  • The nature of the work: Is the work an integral part of the employer's business, or is it something that is typically done by a separate business?

It's important to note that the worker's title or status as an independent contractor or employee does not determine the worker's classification, and the control and financial factors are the most important in determining a worker's classification. Employers should also be aware that Federal and state laws may have their own criteria for determining worker classification and should consult with legal counsel.

Employee Handbook

An employee handbook is a document that outlines the company's policies, procedures, and expectations for its employees. It serves as a guide for employees to understand their rights and responsibilities, as well as the company's culture and values.

A business should have an employee handbook for several reasons:

  • Legal compliance: An employee handbook can help a business ensure compliance with federal and state laws, such as those related to discrimination, harassment, and wage and hour laws.
  • Communication: An employee handbook can serve as an effective way for a business to communicate its policies and procedures to its employees, which can help ensure consistency and fairness in the workplace.
  • Employee engagement: By providing employees with clear information about the company's policies and procedures, an employee handbook can help employees feel more engaged and committed to the company.
  • Problem resolution: An employee handbook can help a business resolve disputes and conflicts that may arise in the workplace by providing a clear set of procedures for handling complaints and grievances.
  • Human Resources: An employee handbook can provide guidance to the human resources department when making decisions and addressing employee-related issues

It's important to note that an employee handbook should be reviewed and updated regularly to ensure that it stays current with changes in laws and regulations and to reflect the company's evolving policies and procedures. Employers should also consult with legal counsel when creating or updating employee handbook to ensure compliance with applicable laws.

Workers' Compensation Insurance

Workers' compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill as a result of their jobs. It typically covers medical expenses, lost wages, and other benefits. In the United States, workers' compensation is a state-mandated insurance program that is required by law in most states.

In order to comply with workers' compensation requirements, employers must:

  • Obtain workers' compensation insurance:

    Employers must purchase workers' compensation insurance from a private insurer or self-insure, depending on the laws of the state where they operate.

  • Provide coverage for all eligible employees:

    Employers must provide workers' compensation coverage for all eligible employees, regardless of whether the injury or illness occurred on or off the job.

  • Notify employees of coverage:

    Employers must inform employees of their rights and benefits under the workers' compensation program, including how to file a claim.

  • Report injuries and illnesses:

    Employers must report any work-related injuries or illnesses to the appropriate state agency or insurance carrier in a timely manner.

  • Provide a safe working environment:

    Employers have a general duty to provide a safe and healthy working environment and to comply with OSHA regulations and standards.

Violations of workers' compensation laws can result in penalties and fines for the employer, as well as potential legal action by the affected employees. Employers should consult with legal counsel to ensure compliance with workers' compensation laws in their state.

Employer's Portion of Taxes for Employee Compensation

In the United States, employers are responsible for paying several types of taxes in relation to employment, including:

  • Federal income tax:

    Employers must withhold federal income taxes from employee paychecks and remit them to the IRS.

  • Social Security and Medicare taxes:

    Employers must also pay a portion of Social Security and Medicare taxes on behalf of their employees and must match the amount withheld from employee paychecks.

  • Federal Unemployment Tax Act (FUTA):

    Employers are required to pay a federal unemployment tax, which is used to fund state unemployment programs.

  • State income tax:

    Depending on the state, employers may be required to withhold state income taxes from employee paychecks and remit them to the appropriate state agency.

  • State unemployment tax:

    Employers are also required to pay state unemployment taxes, which fund state unemployment programs.

  • State disability insurance:

    Some states require employers to provide disability insurance to their employees and pay a portion of the premium.

  • Paid Family Leave:

    Some states have paid family leave programs in which employers need to pay a portion of the premium. 

Employers should consult with their tax and legal advisors to ensure compliance with the various tax laws and regulations at the federal, state, and local levels, as the requirements can vary depending on the location of the employer and the size of their organization.

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