Employment laws have mostly been created to balance the relationship between “bosses” and “workers.” Employment laws are very important to ensure employees are given certain rights like the right to a minimum wage and reasonable work hours. How do employment laws apply when you form a cooperative to work with others, rather than for others?
What Does it Mean to Have Employees?
You might think employment laws don’t apply to cooperatives, but, actually, they often do! Employment laws are designed to cover as many people as possible so that no workers are left unprotected by a loophole. The safe thing is to assume that everyone working for a cooperative is an employee, and then work backward from there to see if you can find any exceptions. Worker’s legal status also is important to understand when classifying types of workers.
Having employees comes with a list of obligations and requirements, including
- Paying minimum wage and overtime;
- Complying with standards for hours and working conditions;
- Withholding payroll taxes and other withholdings;
- Maintaining worker’s compensation insurance;
- Complying with occupational safety and health laws;
- Verifying eligibility to work in the U.S.;
- Register with the Employment Development Department (EDD) (in California)
- Posting of certain kinds of notices and posters related to employees rights
Who Enforces Employment Laws?
Wage/Hour/Child labor laws:
At the California state level, the Department of Industrial Relations, Division of Labor Standards Enforcement (DLSE) is the primary body that enforces wage and hour laws, child labor laws, etc.
Employment-related laws and regulations:
The Division of Occupational Health and Safety (Cal/OSHA) and the Division of Workers’ Compensation (DWC) also play a role in enforcing employment-related laws and regulations.
Protection against discrimination:
The Department of Fair Housing and Employment protects employees from discrimination.
Federal Level:
In addition to the state-level agencies, agencies operate at the federal level to enforce similar laws.
Violations:
Although it is somewhat rare, employment law agencies may audit a business and fine it for violations. Most of the time, however, employment laws are enforced by workers that bring claims for back wages, health and safety violations, or some other complaint.
Complying with Employment Laws for minors
The rules vary depending on the particular age of the minor and the particular job involved. As a general rule, the Fair Labor Standards Act (FLSA) sets 14 years of age as the minimum age for employment and limits the number of hours worked by minors under the age of 16.
Also, the FLSA generally prohibits the employment of a minor in work declared hazardous for example, work involving excavation, driving, and the operation of many types of power-driven equipment. The FLSA contains a number of requirements that apply only to particular types of jobs like agricultural work or the operation of motor vehicles. If the minor is working for their parents there are exceptions to the general rules. Each state also has its own laws relating to employment, including the employment of minors. If state law and the FLSA overlap, the law which is more protective of the minor will apply.
Related articles
Determining If Someone Is a Cooperative Member or Employee
In order to make a distinction between types of worker-owners, it’s important to apply a test or series of tests that have been developed for determining who is a member of an enterprise. Below, we provide guidance on determining how much control each worker-owner must have in order to be classified as a “member,” rather
Classifying Roles in a Cooperative
It is critically important to evaluate the question of employment status carefully. Failure to properly classify someone as an employee could result in an expensive lawsuit or fine when either a labor department or worker decides to call out an actual employment relationship. This is especially true when converting a business to a worker-owned cooperative.
Unionizing a Cooperative
Cooperative law and employment & labor relations law intersect when combining unionized workers and worker-owned employers, and there are a host of creative ways to navigate that legal landscape. Insight from attorneys in those fields as well as organizers who have built union co-ops can be valuable in mapping possible paths. Allowing Employees to Unionize
