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Hrm 531 Week 2 Memo

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MEMORANDOM
TO: Bradley Stonefield, Owner
FROM: Chris Weeks
DATE: October 6, 2013
SUBJECT: Employment Law Compliance Plan
The following memo will cover some federal and state employment laws and the consequences for noncompliance of those laws.
The U.S. Department of Transportation has minimum set of requirements for those operating a limo service. Drivers cannot drive more than 10 consecutive hours. Drivers must perform vehicle safety inspections and sign a vehicle maintenance log before each trip. Drivers must have a current valid state driver’s license and a list of any violations on file with the company. Drivers must have a minimum Class C state driver’s license with passenger endorsement. Drivers must also complete and pass drug and alcohol testing prior to employment and undergo random testing thereafter (Federal Limousine Service Regulations). Drivers must maintain a clean driving record and must be insurable under the company’s liability insurance policy.
In Austin, Texas in order for an employee to drive a limo they must apply for a Chauffeur license permit. The permit will require background, license and traffic violations checks. A copy of the employee’s criminal history and driving record must be certified by Texas Department of Safety. Texas state law requires the employee to carry a license and provide on demand. Not carrying a license can result in a fine not to exceed $200, subsequent fines and jail time for second and third violations.
Limousine companies must follow specific wage and hours laws when it comes to the payment of their drivers. If not done correctly the company may face liability in the form of IRS penalties, Department of Labor penalties and potential litigation. According to the Internal Revenue Service limousine drivers should be classified as employees and not independent contractors unless exceptions apply. Wage and hour laws apply to drivers including payable hours and if drivers are entitled to overtime for hours worked in a 40 hour week. The driver should be paid from the time they arrive at work and the time between routes unless they are performing personal tasks between routes. Since DOT regulations apply to limousine companies, there is not a requirement to pay drivers overtime unless exceptions apply. Drivers must receive at least minimum wage for every hour worked. Non-compliance with Federal or State employment laws can result in Wage and Hour charges which can lead to audits of all records.
These are just a few of the employment laws you will need to know to start Landslide limo service. If you have any further questions or concerns please feel free to contact our office.

References
Airport Commuter Limo & Sedan Service, Inc. (n.d). Federal Limousine Service Regulations.
Retrieved on October 6, 2013 from http://www.airportcommuter.com/worldwide/federal_limo_regulations.htm Texas Work Force Commision(2013). Employment Law. Retrieved October 6, 2013 from http://www.twc.state.tx.us/customers/bemp/employment-law.html AustinTexas.Gov. (N.D.). Transportation. Retrieved on October 6, 2013 from http://www.austintexas.gov/service/chauffeur-permit-application MBW Law, LLC. (2013). Wage and Hour Issues for Limousine Companies. Retreived on
October 6, 2013 from http://www.mbwlaw.net/wordpress/?p=40

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