Business Employment Law – What Every Small Business Owner Should Know


Business employment law encompasses all areas of the employer/employee relationship. Understanding of these business laws is necessary if you are looking to open up a business. There are a variety of subjects to learn about under these laws, some of the most important for a local owner to understand are:

  • Non Disclosure Agreements (NDA)
  • Business Commercial Labor Laws
  • Sexual Harassment Business Laws
  • Americans with Disabilities Act (ADA)

By fully understanding these business law concepts, an owner will be aware of his rights and the rights of his employees, what they are entitled to under current business employment law and how they should be treated in a place of business.

Non Disclosure Agreements

A Non Disclosure Agreement is a mutual contract that is signed by two parties (employer and employee) which protects confidential information regarding the specific company.

For example, many employers ask employees to sign an NDA so that the private information that the employee may learn about and be involved in will remain confidential, even if the employee departs from the business. Under business employment law, if the employee uses this information or reveals it, then the employee can be sued for breach of contract.

Business Commercial Labor Laws

Within the category of business commercial labor law, there are dozens of factors to consider that the employer must be well versed on. These subjects include:

  • Minimum Wage
  • Labor hours and Holidays
  • Anti Discrimination
  • Contract of Employment
  • Child Labor
  • Unlawful Discharge


While drafting a contract for future employees, an employer must
take into account certain business commercial labor laws, such as salary, vacation days, terms for termination, etc. As an employer, one must know on what grounds one can dismiss an employee or to deny an employee of work while still complying with business employment laws.

Also, under business commercial labor law, a contract can be void if the information in the contract is illegal. For example, if the minimum wage is $8.50 per hour and the employer and employee sign a contract agreeing to $7.00 an hour, the entire contract may be null because it is illegal under business employment law for the employer to pay an employee less than minimum wage. Therefore, it is pertinent to know the current standards under Florida business law.

Sexual Harassment Business Laws

Sexual harassment business laws are normally associated with protecting women, but they actually protect both sexes from sexual advances from another person.

Sexual harassment in the work place can be defined as any unwanted sexual advance, whether physical or verbal, that may affect an employee’s work habits and safety or that may prevent them from obtaining promotions or other career advancements.

Americans with Disabilities Act of 1990 (ADA)

The Americans with Disabilities Act of 1990 prohibits discrimination against individuals by employers that are covered by the law. Not all employers are covered by the law. Generally, employers of fewer than 15 people are not covered by the ADA.

Additionally, not all disabled individuals are covered by the ADA. In order to be covered by the ADA, the disabled individual must be able to perform the essential functions of the job for which he or she is hired.

If an employer is covered under the ADA, the employer must make “reasonable accommodations” to accommodate the disabled employee in the workplace. So long as the reasonable accommodation does not create an “undue hardship” on the business. The policy behind reasonable accommodation is so that the disabled individual can receive “equal opportunity” in the workplace.

It is important for all businesses covered under the ADA to be aware of the legal responsibility imposed by this important law.

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