Businesses in every state are subject to local laws and regulations about how the business must be run. Some of the most important laws to understand for any prospective employer are those that relate to employment. Business law in Indiana has a number of special rules that any business owner who intends to employees must adhere to. Failing to follow these laws can lead to penalties and other legal repercussions for a business.
Unemployment Insurance Laws
A business is required under business law in Indiana to provide unemployment insurance to its workers. The purpose of unemployment insurance is to provide employees who lose their jobs through no fault of their own with a temporary replacement of wages. The question becomes, who is considered an employee?
An employee, according to Indiana business law, is anyone who works for you unless: they are not directed or controlled on how to perform their job, the work done is not related to the day-to-day business operations, or the worker is engaged in an independently establish profession. So long as the business employs at least one person for at least 20 weeks a year, it qualifies for this coverage.
Worker's Compensation Laws
Another type of coverage that is required under business law in Indiana is worker's compensation. The purpose of this is to provide workers who are injured or get sick due to something job-related with partial wages. The employer must obtain worker's compensation coverage from a private insurance company. In the event of an accident or serious illness that removes an employee from work for more than one day, the employer must file Indiana Worker's Compensation First Report of Employee Injury, Illness to begin the process of granting worker's compensation.
Hiring Regulations Under Business Law in Indiana
Business law in Indiana also maintains additional regulations and restrictions that must be followed to remain in business in the state. The Indiana Occupational Safety and Health Act, or IOSHA, is a set of regulations put in place to protect workers by ensuring that a safe and healthy workplace is maintained. Failure to adhere to IOSHA standards could result in fines or a shutdown of the business.
Indiana enforces policies of anti-discrimination. According to business law in Indiana, it is illegal for a business to refuse to hire a person or promote them based on their race, sex, nationality, religion, sexual orientation, age, or any disabilities. Discriminatory hiring practices can result in penalties, and victims of such practices may be entitled to civil action against the business.
