One of the benefits of working for businesses in the United States are the labor standards, which provide a measure of guarantee that U.S. employers will abide by certain rules when it comes to the treatment of their hired labor. The U.S. Department of Labor guarantees these standards with the force of law. In some other countries there are no such guarantees, with varying consequences. Labor standards instill faith in the employment system which in turn promotes economic growth because happier and healthier employees are more willing to invest their efforts in a company than unhappy and unhealthy employees.
The Fair Labor Standards Act of 1938 set standards for wages and hours, and outlawed most forms of child labor. It sets a minimum wage, which is periodically updated to reflect inflation and perceptions of minimum living standard. The standard working week is set at 40 hours with 1.5 times standard wages for overtime pay. The child labor ban reflected the views of the populace at the time; although children had worked in factories and farm labor consistently in the recent past, by 1918 compulsory education was the law nationwide and the ban served to reinforce the belief that children should be in school and not the workplace. A benefit for the average worker was that with a smaller pool of unskilled workers, wages increased.
Safety standards were set in response to the dangerous conditions that damaged the health and resulted in casualties of many workers during the industrialization of America. Rigorous standards help prevent the employer from sacrificing the wellbeing of their workers to save money. Employers who cut corners on safety conditions now face fines and potential lawsuits when their employees are injured. Businesses who habitually fail to comply develop a reputation as exploitative and qualified employees can avoid working there.
Another labor standard is the right to organize. Employers used to be able to use harsh tactics to break up unions because they have the most natural power, but now workers can unionize without retaliation from the company. This allows workers to leverage their value as a group to negotiate for better conditions, wages, and benefits. These efforts are how many Americans got the five day workweek, premium wages, vacation days, and pensions.
The labor force is made up of real people who choose whether or not to participate in the economy. When there are no labor standards, Compliance Document Service help people to choose to participate as little as possible, which hurts the economy and the business. With fewer people participating in the economy, the price of labor increases, which drives up the cost of production.
Employees are not the only beneficiaries of high labor standards. Companies also benefit because qualified employees are in demand by many companies. If one company mistreats them, they can usually get hired on somewhere else that treats them better. The only employees that an abusing company can hold on to are those with no other employment options because they have no skills that are in demand. Therefore, the most successful companies not only meet the minimum standard required by law, but exceed it in order to attract real talent to the organization.
Compliance Document Services can help you meet the U.S. federal labor standards. Visit our store today.
