Responsible business growth in Arizona begins with a commitment to a fair and productive workplace. Understanding the impact of employment practices and legal requirements on business is essential to that growth, which is the expertise attorneys bring to the enterprise.
Fair Hiring Practices
Adding employees is an important step in business growth, but hiring isn’t as simple as posting a job description and waiting for resumes. The Equal Employment Opportunity Commission states that all employers must deploy fair hiring practices.
Job postings should use inclusive language that avoids bias or exclusion based on protected characteristics such as race, gender, age, religion, disability or national origin. This includes using non-gender-specific terms, such as “person” instead of “man” in job titles. Creating clear job criteria is a main priority when assessing candidates during the hiring process. If conducting background and reference checks, they must be done so as to not unlawfully infringe on an applicant’s privacy.
Anti-Discrimination and Harassment Prevention
In 2023, the EEOC saw a 10% increase in discrimination charges against employers, receiving 81,055 new complaints. Title VII of the Civil Rights Act of 1964 states that employees are protected from discrimination based on race, gender, age, religion, disability and other protected characteristics.
Discrimination and harassment in the workplace cover a range of behaviors that include offensive jokes, intimidation, threats, unwanted advances, false rumors, exclusion from work events, and more.
Having policies to address discrimination and harassment is just the first step. These policies must be enforced, and employees must feel safe reporting issues without fear of retaliation. Reporting can be difficult, especially if the business owner is involved, so businesses should consider creating an empowered HR team. Commitment to a harassment-free workplace fosters inclusivity, enhancing employee retention, satisfaction and morale.
Wage and Hour Compliance
Fair compensation is a cornerstone of good business practices and as wage and hour laws change, so must a business’s salary structure. To ensure appropriate compensation for employees, the Fair Labor Standards Act outlines employment standards for private-sector employers with 50 or more employees.
Growing businesses, especially those using independent contractors, must comply with both federal and Arizona state laws by classifying independent contractors properly. An independent contractor is defined by the payer’s right to control only the result of the work, not the methods used. Independent contractors are self-employed and are responsible for their own employment taxes. Salaried (non-exempt) and hourly employees are subject to the rules of the company.
Hourly employees may be eligible for overtime pay if hours exceed 40 per week. It’s essential to plan for anticipated work hours and potential overtime as misclassifying employees or miscalculating hours can lead to legal consequences, including wage repayment. Regular wage and hour evaluations and consultations with employment law experts ensure compliance and keep the business on track.
Workplace Safety
Creating a safe workplace and preventing injuries requires adherence to Occupational Safety and Health Administration regulations. For some businesses, that may mean providing uniforms or other required clothing; for others, it may mean providing protective equipment. All businesses should properly display safety policies and procedures and the proper protocol for reporting injuries. In addition, regular safety audits and training programs help to maintain compliance.
Family, Parental, Pregnancy Leave
The Family and Medical Leave Act permits employees up to 12 weeks of unpaid leave within a 12-month period for specified family and medical reasons, including childbirth and/or adoption. The State of Arizona does not require employers to offer additional unpaid leave beyond what FMLA provides. However, many employers will allow employees to use accrued paid time off to supplement the 12 weeks unpaid leave.
Employers must ensure that returning employees have the right to be reinstated to their original position or an equivalent one with the same pay, benefits and other terms and conditions of employment.
Employers should regularly review and update leave policies and communicate them through employee handbooks and educational training sessions to make employees aware of their rights.
Trade Secrets
Safeguarding a company’s intellectual property is just as important as safeguarding employees, and proprietary information may be protected under the Arizona Uniform Trade Secrets Act. Employers maintain confidentiality by implementing procedures such as confidentiality agreements for employees that define obligations regarding confidential information and unauthorized use or disclosure of trade secrets. Limiting access to information to authorized individuals and taking proper cyber security measures to protect data from threats are other essential steps to keeping trade secrets a secret.
Troy P. Foster is a fourth-generation Arizona native and partner of The Foster Group in Phoenix. With more than 20 years of legal experience exclusively in the employment law space, Foster takes pride in guiding clients, step by step, to understand and exercise their rights at every juncture.
Did You Know: In April 2024, the Equal Employment Opportunity Commission issued its final guidance on workplace harassment since 1999, clarifying protection for LGBTQ+ workers based on gender identity and virtual work environment protections.
