Consulting Memo

MEMORANDUM

TO:          Bradley Stonefield

FROM:           

DATE:           May 3, 2015

SUBJECT:   Human Resources Consultation

CC:            Traci Goldeman

First, I would like to start off by thank you for choosing our firm and letting us guide you and your business to success. There are two laws set worth that I think it is extremely important for you to be aware of as you start growing your company. First, I would like to touch on employment discrimination as outlined in the Civil Rights Act of 1964. This act makes it very clear that it is prohibited that employers discriminate based on race, color, religion, sex, and national origin (EEOC, 2014). For example, it would be inappropriate not to hire a female applicant as a driver solely on the bases that she is a female. You as the owner will be charged with protecting your employees from a hostile work environment free of jokes based on sex or racial discrimination. Engaging in such activity can be considered discrimination and may subject you to potential litigation. A good example of what may occur is in the case of Camara v. Matheson Trucking. This case took place in Colorado and resulted from the company separating its employees in their warehouse by race (Camara v. Matheson Trucking). The company was forced to pay 15 million in damages to employees. This amplifies the importance of not falling to unethical habits.  Preventing sex, color, and religion discrimination will allow you to garner a positive outlook of your company.

 Next, I would like to cover The Fair Labor Standards Act the Texas Minimum Wage Act. This will be key to you and your company as your operations will be based out of Texas ("Labor Code", 1993. The Texas Minimum Wage Act requires employers to pay their employees at least $7.25 which is the federal minimum wage. The Texas Minimum Wage Act requires employers to give earning statements; establishes minimum wage for non-exempt employees; and provide civil remedies for its violations. This act protects the employee from wage discrimination and outlines the fines that may be imposed for violating its terms ("Labor Code", 1993). The company may be subjected to pay the employee’s wage plus damages as outlined. History has shown that most cases of wage discrimination are not purposely undertaken but are a result ownership and management groups not knowing enough about the laws and regulations. This is the reason why I implore you to educate yourself prior to making hirings for your business. It is imperative to understand and apply proper overtime rates when paying employees. This will greatly minimize the liability faced by your company.  Companies across Texas are paying large fines and settlements to victims of pay and wage discrimination. A company the size of your own would be crippled by even minor fines (Curry, 2014). As you grow as a business take the time to review the requirements of law as they me be affected by the number of employees in a company.