Prior to 2012, only five cities had local wage ordinances. Today there are 42. Businesses looking to expand into different states and cities will find new labor laws waiting to greet them. In the past, most businesses only needed to be concerned with federal and state laws, but now even cities are beginning to implement legislation that impacts the way businesses operates. Even if you move your office or hire a new employee only one city over, you may find that your business’s processes need to change.
Research, Research, Research
Before hiring employees across the country or moving your business to a new location, first begin by researching the plethora of laws that will impact your company. For example, if you were to higher an employee in San Francisco and New York, you would need to know how to code their paycheck for taxes and wages differently. By law, what benefits are they supposed to be given, and what is their required pay rate? What is the tax deduction for the two employees? All these issues, and more, should be considered.
However, most business leaders do not have the time to weed through information on the internet and read hundreds of pages of legislation to understand how each city, state, and federal policy mandates their business operations. Vipshop experienced this exact situation when they opened offices for their worldwide e-commerce company in San Jose, San Francisco, and New York. Their expansion brought complications, and for them to effectively scale their business, they needed a team of people that had knowledge managing a multi-state workforce.
An Effective Solution
Vipshop didn’t have time to waste on HR and payroll errors that could be prevented with the right know-how. Find out how Vipshop successfully grew their business while maintaining compliance with a multi-state workforce.
And to learn more about Vipshop, visit their website.
About the Author
Andrew is the Marketing Communications Specialist for Zuman, the one solution for HR, payroll, and benefits administration that supports growing small to midsize businesses.More Content by Andrew Larsen