Compliance

To: Bradley Stonefield

From: Michelle Pinder

Date: February 3, 2014

Re: Setting up Landslide Limousines.

Thank you for allowing Atwood and Allen Consulting to assist you as you prepare to open your limousine service, Landslide Limousines. Your new company will provide first-class transportation here in Austin, Texas and you plan to hire up to 25 employees during your first year. I will highlight some of the employment laws that apply to a company of your size as well as the possible consequences of non-compliance. These laws are extremely important and are in place to protect you and your employees.

The Employment Retirement Income Security Act (ERISA)

This is a federal law that applies to private employers such like you. It sets the minimum standards for retirement, health and other benefit plans including life and disability insurance. ERISA law does not require you to carry insurance however it does require compliance.

Your ERISA administrator must follow the requirements for Conduct Reporting and Accountability, Disclosures, procedural safeguards, financial and Best-Interest Protection.

If ERISA compliance is not adhered to in its entirety, you may face tough civil and criminal penalties. If you fail to comply with the annual reporting requirements you or your plan administrator could face a penalty of up to One Thousand Dollars ($1,000.00). Additionally, if you engage in prohibited transactions with welfare and nonqualified retirement plans; you may be accessed civil penalties ranging from five to 100 percent of the amount involved in the transaction ((Baniewicz, 2008).

OSHA

This law, Occupational Safety and Health Act of 1970, was formed as a means of enforcing employee safety in the workplace. This law only applies to your employees as the drivers that are brought on board as independent contractors, are not subject to the OSHA coverage, however keeping them safe should still remain a priority.

Your drivers may face risks that...