Hrm 531 - Limo Service Case

Limo Service Laws

HRM/531

May 19, 2014

Yamile Bandera

Limo Service Laws: Memo

Mr. Stonefield has requested consultation on a new his new endeavor of opening up a small business in Austin, TX. His business will feature 25 employees and will provide limousine services for the city. Mr. Stonefield has requested information as to which laws are applicable to his business and for an understanding of the consequences if he is not in compliance. The following memo will review some important laws he should be aware of in order to stay compliance and avoid any consiquences.

Fair Labor Standards Act of 1938

When Mr. Stonefield is determining the wages and salaries for his employees, he must take into consideration the Fair Labor and Standards Act of 1938. This act is regulated by the Wage and Hour Division of the Department of Labor and sets a federal standard for minimum wages allowed. Every state may have an individual minimum wage standards but it cannot be lower than the federal standard. Specifically pertaining to Mr. Stonefield, the state of Texas will have the 3rd highest wages for taxi and limousine drivers. What he should also consider is that a recent revision in 2009 by the Fair Labor and Standards Act increased the minimum wage to $7.25. (Wages and Hours Division) His company will be under scrutiny from the Department of Labor for the salaries of the drivers and also by the Federal Department of Transportation since they are dealing with transportation. State regulatory agencies will be looking at this service for hours of operation for delivery operators. It is important to know these laws and stay within compliance. If Mr. Stonefield does not stay in compliance, he may be facing fines, costs from expenses, back pay, compensatory and punitive damages or liquidated damages. (Fair Labor Standards Act)

Equal Employment Opportunity Laws

As consultants for Mr. Stonefield, we want to make sure that he runs a discrimination free environment. Discrimination is unlawful and the government has created the Equal Employment Opportunity Commission to make sure that employers do not discriminate against applicants or employees based on “race, color, religion, sex, national origin, age, disability, or genetic information”. This can be broken down into several acts. Title VII of the Civil Rights Act of 1964 is one of the laws enforced by the EEOC and it specifically targets discrimination based on “race, color, religion, and sex”. In dealing with age, the Age Discrimination in Employment Act of 1967 says that an employer cannot discriminate against anyone 40 or