In Hawaii, family-owned businesses are an extraordinary venture and offer families a chance to build something together. Legalities that apply to the business structure require a keen eye and advance understanding of applicable laws. A Family Business Attorney in Kailua-Kona HI explains what is achievable under family business laws.
Defining Employee Rights and Policies
Any family members who work for a family-owned company are still defined as employees. The owner creates policies for their workers just like in any other business venture. Employee rights meet the standards and expectations of federal labor laws. Employees follow all policies as defined by the owner.
A Better Understanding of the Fair Labor Standards Act
Under the Fair Labor Standards Act, children under the age of sixteen work any schedule they want as long as their parents are the sole owners of the company. Exceptions apply to businesses in manufacturing, mining, and potentially hazardous work environments. The owner reviews current laws to avoid potential liabilities and violations.
Identifying a New Owner and Legalities that Apply
When the owner is ready to retire, laws allow them to identify a new owner or management staff for operating the company. A will defines the new owner if the original family-business owner dies. Any provisions that apply to the assignment are explained in the will. For example, the stipulations might prevent the sale of the property to anyone outside the family.
Mitigating Accident Risks
Worker’s compensation insurance covers worker-related accidents. Family-owned businesses purchase coverage if they have more than one worker, even if the worker is a family member. The insurance offers medical coverage and wage replacement. An attorney helps the owner review possible liabilities related to hiring family members as employees.
In Hawaii, family-owned businesses require a proper structure that defines the rights of workers when the workers are family members. Proper policies prevent common conflicts that lead to legal disputes. Well-defined policies also address potential risks to the company and financial losses. Business owners who need advice about defining policies and rules contact a Family Business Attorney in Kailua-Kona HI through Goodsill Anderson Quinn & Stifel or browse the website for more information right now.