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The Legal Environment of Business

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The Legal Environment of Business
The Legal Environment of Business
Employment and labor laws are framed out to furnish an evenhanded and wholesome
working environment for both employers and employees. These rules and regulations govern
employers on how their employees should be managed within their workplaces. The motive
behind the enactment of employment and labor laws was the discernment of social rectitude to
assuage the deprivations faced by employees at their workplaces. Many employers and
employees often do not recognize sundry rules and regulations that are embodied within the
employment and labor laws which could be disconcerting to both employers and employees
alike. Therefore, employers should clearly apprehend the employment and labor laws in order to
eschew any legal action against them for violation of any of these laws for lack of knowledge.
Over a period of next twelve months, the XYZ Construction Inc. is planning to augment
its domestic business operations within the United States as well as internationally within the
Asian countries through Initial Public Offering (IPO). It is, therefore, paramount for the
management of XYZ Construction Inc. to acquaint themselves with the employment and labor
laws prevalent in the USA and in various Asian countries before initiating its business operations
in these regions.
To begin with, it may be taken up with the employment and labor laws in force in the
United States. The Department of Labor (DOL) is responsible to enforce the labor laws in the
United States (2011, p. 332). Businesses follow the Fair Labor Standards Act (FLSA) to practice
labor laws. The FLSA mainly consists of three important laws about national minimum wage,
guaranteed overtime pay, and limiting the use of child labor. The American Disabilities Act
(ADA) of 1990 safeguards employees with disabilities. These laws are applicable to employers

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The Legal Environment of Business
of the federal government, state and local governments, and also the companies with annual sales
of at least $500,000 and those engaged in interstate commerce (Guerin & Delpo, 2011). The
United States Congress also enacted the National Labor Relations Act (NLRA) in 1935 to
preserve the rights of employees and employers, to strengthen collective bargaining, and to
minify several private sector labor and management practices which can be detrimental to
general contentment of workers, businesses as well as national economy in general (Strecker,
2011). These laws will be succinctly dealt with in the following paragraphs so that the
management of the XYZ Construction Inc. can be aware of the important miens to be followed
concerning these laws.
Wages and overtime payment matters are governed by the Wage and Hour Division
which call for employers to comply with the rules of the federal minimum wage payment and
overtime payment of one-and-one-half-times the regular pay rate (Department of Labor [DOL],
2009). For nonagricultural engagements, the FLSA also binds employers to enforce the
limitation of employment hours for the children under the age of sixteen and prohibition of
hiring children under the age of eighteen for specific jobs considered to be perilous for them
(DOL, 2009). The ADA Act of 1990 requires employers to provide modest accommodations to
employees with known disabilities, unless it is strained on the employer’s business (Rhoads,
2010). Apart from these laws, it is also to ensure of the environment of workplace safety and
employee health. The Occupational Safety and Health (OSH) Act is governed by the
Occupational Safety and Health Administration (OHSA) to warrant that workplaces are free
from any austere hazards and these laws have been formulated in order to make sure that safety
measures are being actualized by employers (DOL, 2009). They are also required to implement
appropriate procedures to employ nonimmigrant workers as ordained under Immigration and

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The Legal Environment of Business
Nationality Act (INA) which applies to aliens authorized to work in the United States (U. S.
Citizenship and Immigration Services [USCIS], 2011).
The employment and labor laws are varied in the Asian countries and cover such pivotal
issues as employment contracts, training and development, benefits and retirement, termination,
hiring expatriates and foreign workers, disable workers, and last but not least, the child labor
issues. To synthesize the employment and labor laws internationally, the International Labor
Organization (ILO) was set up in 1919 so that the rules of decent work environment are observed
among member countries. ILO is also liable to exterminate forced labor and to establish a
standard that recognizes both national and international demands for the conscientious rights of
labor force (Maul, 2007). The ILO which embraces the membership of more than a hundred
countries, chiefly a majority of the Asian countries, dispatch government, management, and
labor delegates to compile some homogeneity among the employment and labor laws of member
nations and to form trade councils and impart propositions for labor charter that can be
systematically espoused by all member countries (Maul, 2007). There are still child labor issues
in China. More recently, one of the electronics factories in Jiangsu Province in China was found
to have employed ten child workers in its electronic factory even though child labor is banned in
China (Zhou, 2012). As the biggest labor market is in China, it has enacted rules and regulations
based on the employment and labor laws of many advanced countries. The promulgation of the
labor laws is much simpler in comparison to contriving administration structures to enforce these
laws. It remains to be seen how long it will take China to institute enforcement across the whole
country. Also labor unions in Indonesia are demanding amendments in labor laws to enhance the
severance payment for the terminated workers (Schonhardt, 2012). Due to the variance in
employment and labor laws implemented in different Asian countries, it is in the best interest of

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The Legal Environment of Business Employment and labor laws are framed out to furnish an evenhanded and wholesome working environment for both employers and employees. These rules and regulations govern employers on how their employees should be managed within their workplaces. The motive behind the enactment of employment and labor laws was the discernment of social rectitude to assuage the deprivations faced by employees at their workplaces. Many employers and employees often do not recognize sundry rules and regulations that are embodied within the employment and labor laws which could be disconcerting to both employers and employees alike. Therefore, employers should clearly apprehend the employment and labor laws in order to eschew any legal action against them for violation of any of these laws for lack of knowledge. Over a period of next twelve months, the XYZ Construction Inc. is planning to augment its domestic business operations within the United States as well as internationally within the Asian countries through Initial Public Offering (IPO). It is, therefore, paramount for the management of XYZ Construction Inc. to acquaint themselves with the employment and labor laws prevalent in the USA and in various Asian countries before initiating its business operations in these regions. To begin with, it may be taken up with the employment and labor laws in force in the United States. The Department of Labor (DOL) is responsible to enforce the labor laws in the ...
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