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Employer Issues

I have heard I need to follow numerous regulations if I have employees. How do I cover all my bases?

First, visit the Employee or Independent Contractor page on this site to determine whether your workers should be classified as employees or independent contractors. You may encounter legal problems if you wrongly classify a worker.

Next, go through the Business Wizard and under Question 3 select either “Employees” or “Both” (Employees and Independent Contractors). The resulting Checklist will provide contact information for the agencies that regulate employment issues. Also visit the Employer Issues section of this website for information on a variety of topics.


How do I establish a retirement plan for my employees?

Retirement plans must comply with Federal and state laws and Internal Revenue Service requirements. The U.S. Department of Labor oversees the Employee Benefits Security Administration (EBSA), which sets standards for establishing and maintaining retirement plans. The DOL also administers the Pension Protection Act.

Internal Revenue requirements for establishing small business retirement plans are contained in the Small Business Retirement Plan Resources and in Publication 560.


Where can I find out about paying overtime?

The U.S. Department of Labor regulates overtime payments. For other important information about having employees, see the Employer Issues page on this site or Idaho Labor Laws on the Idaho Department of Labor’s website.


Harassment is a touchy subject. What do I need to know to protect my employees and myself?

On the job harassment takes many forms, none of which should be tolerated. One employee may harass another; a supervisor may harass an employee, group of employees or another supervisor; or a customer may harass one or more of your employees. Harassment may be related to religion, ethnicity, gender, age, disability or another issue. Bullying is a form of harassment and should not be tolerated.

Every business with employees should have a written harassment policy that is clearly communicated to employees, both as a deterrent to harassment and to inform employees of their rights if they are harassed. It is particularly important to have a written sexual harassment policy because sexual harassment on the job violates federal civil rights laws. Having a written policy your employees know about may offer some protection if you are sued.

Training videos and additional information about preventing or investigating sexual harassment can be found here.

For more information about employer responsibilities in preventing harassment, see “Employee Handbooks” on the Helpful Links page of this website.


I had to fire an employee who used drugs on and off the job. I don’t want this to happen again. Where can I get help?

Employee use of illegal or controlled substances is an increasing problem. According to the U.S. Department of Labor, 75 percent of illegal drug users are employed, and 3.1 percent say they have used illegal drugs before or during work hours. The American Insurance Association reports that  prescription drug abuse is the fastest growing drug problem in the U.S. In addition, 79 percent of the nation’s heavy alcohol users are employed, and 13 percent say they have consumed alcohol during the workday. Fourteen percent of heavy drinkers (those who consume 5 or more drinks each day) are employed full or part-time. Between 10 and 20 percent of workers who die on the job test positive for alcohol or drugs. Substance abuse on the job costs employers approximately $74 billion each year in lost productivity.

To help combat substance abuse both on and off the job, the Substance Abuse and Mental Health Services Administration (SAMHSA), a division of the U.S. Department of Health and Human Services, maintains a resource center to help employers address these issues and to assist in creating substance abuse employment policies. Additional information can be found at Drug-free Workplace Act and on the National Safety Council’s website.

Ninety percent of large corporations have drug-free workplace programs but less than 10 percent of small and medium sized businesses have one, making them prime targets for addicted employees. DrugFree Idaho helps Idaho businesses establish a drug-free workplace program. Having a program may reduce workers comp insurance premiums. Today, with the legalization of medical marijuana use in some states and recreational use in others, it is important to involve your attorney when drafting a drug-free workplace policy.

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