Benefits of Labor Laws for Employees and Employers

Who makes Labor Laws
Labor laws are enforced by government agencies to safeguard the interests and welfare of the employers as well as members of workforce. The onus of framing labor laws in the USA lies with the Federal and the State governments. The US Department of Labor makes most of the labor laws.
State Departments of Law also make labor laws for their respective state. The jurisdiction of the state labor laws is limited to the private and government bodies within the state. Federal laws cover all the private, federal, state and local government bodies. The nature of the laws is variable. The suitability and applicability of the laws vary according to the type of employees and the nature of business. Clear understanding of the laws is very important for compliance.

Purpose of labor laws
The labor laws were basically enacted to protect and safeguard the interests and welfare of the employees. But they are important for the employers as well and benefit them. The laws aims at avoiding exploitation of employees by the hands of employers and discrimination on the basis of age, gender, religion, origin, etc. The laws account for safety of the employees working under hazardous conditions. The law also ensures its compliance through various counter acts like False Claims Act and the Whistle blower Protection Act. The laws provides for a grievance remedial system if any infringement of law happens. All these results in a better culture and environment at work place. These measures promote employee welfare and good work ethic.

Benefits for employee
Labor laws make sure there is no discrimination made among employees on any grounds of race, origin, gender and age. The compensation of the employees is fixed by agencies according to rules under FLSA.
The government provides guidelines in the form of laws to monitor and ensure safety measures to prevent workplace accidents and health hazards. This leads to better working conditions. The laws ensure paid leave, job security, overtime payment and other benefits to the employees.

Benefits of employer
Though the target beneficiary of the laws is the employee section, the laws are helpful for the employer too. Complying with these laws ensures better work environment and culture in workplace. The understanding between the employer and the employees grows. This leads to fewer workplace disputes and hassles, and promotes good work ethic among employees and promotes mutual trust among employees and employers. Compliance of labor laws keeps the employer safe from lawsuits against the firm and brings a goodwill image for company in market and client.