USA government

United States Employment Law and the Regulation of Business

Undoubtedly , states are able to regulate business practice and operations through the enforcement of laws that ensure the safeguarding of stakeholders ' rights . In the United States , the state plays an important role in the creation and maintenance of an environment that is conducive to business activities but at the same time upholds the rights of workers to just wages , occupational health safety , health and retirement benefits , and fair employment opportunities (DOI , 2008 These rights are enshrined in the United States Bill of Rights

and further strengthened by a number of legislation that regulates employment practices and standards in the country , ultimately affecting how business is conducted and regulated

The role of the state in guaranteeing workers and employee rights is evident in the presence of government and law enforcement agencies such as the Department of Labor and the Justice Department that are tasked mainly with ensuring employment law compliance from business organizations (DOI , 2008 ) In this manner , workers and employees are able to seek redress for labor grievances through existing legal frameworks . For instance , there are currently four employment laws supporting the right to fair employment and promotion opportunities which are aimed at preventing discriminatory hiring and promotion policies on the basis of sex , race , and disability . Thus , workers and employees have the right to bring their case to court when they feel they are unjustly discriminated against by their employers in terms of wage , promotion , or job tenure and subsequently be qualified to remuneration if their case is found to be valid

Fed Ex 's recent legal battle with a racial discrimination class suit d by its African-American and Hispanic workers in 2003 is an illustration of how workers are able to use available legal mechanisms to effectively regulate business practices that undermine workers rights . The suit , which stemmed from allegations that the package delivery company was passing its African-American and Hispanic employees over for promotion , paying them lower wages than White employees , and subjected them to unfair disciplinary action and evaluation processes (Reuters , 2007 ) The company was therefore forced to pay a settlement of 53 .5 million to avoid a lengthy and cumbersome litigation process despite denials that it was guilty of such crimes . It is clear from Fed Ex 's case that the United States government effectively regulates business operations , particularly labor and employment standards , by implementing a system of penalty for offending business organizations that can oftentimes be too costly for businesses to incur . The legal system provides workers and the state with powerful tools to discipline businesses and employers by striking them where it hurts most : the bottomline . It is apparent that litigation proceedings are not only costly for businesses but also inconvenient . A long , drawn-out legal battle not only entails monetary costs but also jeopardizes the integrity and name of a company or business

On the otherhand , the presence of specific labor and employment laws also influence the development of management practices within business organizations that enable businesses to evade both their responsibility to employees and their accountability to the law . Dobbin , et . al (1993 observes that companies , motivated by efficiency concerns , are always engaged in experimenting with practical strategies that will be acceptable to the court (p . 397 ) This demonstrates how businesses , to certain extent , are able to manipulate certain policies within the broad rules and regulations set forth by the state to accommodate their interests

Thus , it is clear that the existence of state legal policies to protect the welfare and rights of workers and employees directly affect business conduct and management practice . The legal system not only grants worker rights protection from unfair employment practices but also deters businesses from committing employement law violations through proceedings that entail financial and social costs to the business organization . Ultimately , businesses are forced to develop strategies that would address their efficiency concerns and at the same time render them clear of liabilities and conflicts with the legal system

Works Cited

Dobbin , F , Sutton , J .R , Meyer , J .W R . Scott (1993 . Equal opportunity law and the construction of internal labor markets . The American Journal of Sociology , 99 (2 : 396-427

Reuters (2007 , April 12 . Fed Ex settles racial discrimination suit Retrieved April 21 , 2007 from the New York Times Website : HYPERLINK "http /www .nytimes .com /2008 /04 /20 /business /12fedex .html http /www .nytimes .com /2008 /04 /20 /business /12fedex .html

HYPERLINK "http /www .dol .gov /compliance http /www .dol .gov /compliance

U .S . Legal System and Business Regulation

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