Role of the US Constitution and Legal System in Business Regulation

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Role of the US Constitution and Legal System in Business RegulationThe Constitution of the United States and their legal system have an impact on the guidance and operation of companies in any industry. In case a person breaks a law, for example, he or she may be obliged to pay a fine or even imprisoned in the US. It works the same way with companies: if a business is found responsible for allowing its employees to violate regulations this company is subject to a fine and even closedown. For instance, companies are responsible to guarantee that all employees are legally authorized to work in the United States. Occasionally employees without proper documentation are able to get a job. The law enforcement agencies perform raids on business…show more content…
Impact of Labor LawsLabors laws impact businesses the most because they dictate how businesses are run, their daily productivity, and expenditures. Federal labor laws protect the interest of employees by setting strict standards for organizations to follow. Regulations schedule breaks, wages, safe working conditions, unemployment insurance. There are federal standards that organizations must abide by and state regulations which never go below the federal standards. Federal laws set a minimum standard and state governments decide what is appropriate for their state (keeping in mind the cost of living standards). Federal and state regulations dictate the age of employees including hours and breaks. There are strict restrictions about the type of work environment children can work in; allowing children to work in hazardous conditions is strictly prohibited under federal law (US (Department of Labor, 2008.) Employers must abide by federal regulations to compensate employees for working more than 40 hours per week. At some organizations unions are established to defend the rights of employees. Unions are a powerful force in the United States and are able to negotiate further for wages; holiday pay, fight against disciplinary action, and other challenges employees deal with on a daily basis.

ConclusionThe United States Constitution and federal regulations have a tremendous impact over the
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