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Nov 15, 2022

What are the Five Areas of Regulation Affecting Business?

The five areas of government regulation impacting Arizona businesses are advertising, labor, environment, health and.

What are the Five Areas of Regulation Affecting Business?

The five areas of government regulation impacting Arizona businesses are advertising, labor, environment, health and safety, and privacy. 

In these areas, the government protects the rights of individuals against companies, the rights of communities against companies, and the rights of workers against companies. In each area, a lack of regulation has proven potentially dangerous. Today, organizations like OSHA, the FCC, and EPA act as federal watchdogs against potential abuses. But the State of Arizona also has its own agencies that prosecute abuses. 

Below we will discuss regulatory rules for Arizona businesses and what you need to know to ensure that your business is in compliance. 

The FTC and Advertising Regulations

The FTC sets policies for advertising. Certain classifications of products cannot be advertised on television. This includes cigarettes and guns. Other rules prevent specific claims from being made in advertisements. 

The Fair Packaging and Labeling Act of 1966 requires that specific information be attached to the label of all products. Since it is a federal law, all states must abide by the provisions of this bill. 

Today, a company must be able to support any claim that it makes, the claims cannot be misleading, and the claims must not be unfair to customers or competitors. 

Employment law, the EEOC, and Labor Regulations

For the purposes of this category, all employment law matters are included except for OSHA/health and safety regulations.

Employment law covers civil rights, immigration law, wage and compensation rules, and retirement options. 

Arizona employers must comply with both state and federal civil rights protections that include fairness in hiring, equal opportunity, and fairness in promoting or firing. Today, employers may not discriminate against an individual on the basis of their race, religion, gender, gender expression, sexual orientation, age, disability, family structure, or nationality. Discrimination complaints are among the most common lawsuits filed against businesses by employees. Sexual harassment and hostile work environment claims all fall under this category. The Arizona EEOC handles many of these complaints.

Employment regulations also cover the hiring of foreign workers for U.S. jobs. Rules require that U.S. companies offer the position at the prevailing rate of pay. They must also exhaust attempts to hire a U.S. worker. 

Lastly, ERISA falls under the category of employment law and places requirements on companies to offer compensation packages to employees. Workers’ compensation, health care insurance, and unemployment insurance are all examples of duties that an employer has to their employees under federal law.

Environmental Regulation and the EPA

The EPA files lawsuits against companies accused of illegal dumping, environmental contamination, and regulatory failures that could result in damage to the environment. Companies that are not in compliance with regulations can be fined. Companies that actually cause damage to the environment can be sued for the cost of clean-up. 

Privacy laws impacting customers and employees

Today, businesses have a duty of care to ensure the privacy of their customers. Whenever you hear about a data breach in the news, it means that some company has failed in their duty of care, exposed their customers’ information to identity thieves, and caused a broad-scale problem for federal agents who prosecute such cases. 

For that reason, the government has placed stronger regulations on companies to protect their customer’s information. These rules are enforced by the FTC and ensure that companies are meeting minimum standards relating to cyber security.

Safety, Health, and OSHA

The Safety and Health Act of 1973 created OSHA, the Occupation Safety and Health Administration which requires companies to meet minimum safety standards to avoid injury to their employees. 

OSHA often steps in after a worker has been injured or killed and conducts a review of the company’s policies and the condition of the facility. When they find safety violations, they note them, cite them, and fine companies for violating them. Repeat offenders can end up on SVEP (the severe violator enforcement program), face hefty fines, and require government oversight.

How a Tempe, AZ, Business Attorney Can Help

The United States government expects U.S. businesses to operate ethically and legally, improving the communities in which they operate. However, the burden on local businesses is often more than the business can bear, and without the proper planning, a business can easily find itself buried in citations and red tape before it has even had a chance to open.

The attorneys at Singular Law Group can help your Tempe, AZ business ensure compliance with all five regulatory frameworks at both the federal and state level. Additionally, you will have municipal ordinances related to Tempe to follow. 

Strong businesses have strong foundations. A Tempe corporate attorney can help your business structure itself in accordance with the latest regulations and avoid the pitfalls of falling out of compliance with Arizona and federal regulations. Call today to schedule an appointment, and we can begin discussing your options immediately. 

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