Being a small business owner has its challenges, and one of them is caring for employees. But is this care actually a duty? And if so, what kind of care is required?

Federal laws require that all employers, whether large or small, adhere to the Occupational Safety and Health Administration’s OSHA standards, which basically requires employers to provide a working environment that is free of known dangers. Additionally, almost every state also has their own version of OSHA, which provides an extra layer of duties of safe care.

A Boss in Good Conscience

State laws also require that an employer act in good conscience to his or her employees. This is intentionally vague, and is subject to different state laws. The duty to act in good conscience creates limited fiduciary duties in certain circumstances that are created by the employer, such as offering an employment contract or a 401K.

For instance, a small business owner may want to sponsor a retirement plan for its employees, in order to compete for top talent with larger companies. An employer doesn’t have to do this, but if does, it needs to act in good conscience. Even if the business owner contract this out to a third party service provider, who works directly with the employees. the business owner has created a fiduciary duty that must be honored.

If you are concerned that your work environment is not up to OSHA standards, or if you believe you have created a situation with an employee that has created a limited fiduciary duty, contact a local employment lawyer. They can review the facts of your case, and advise you of any fiduciary liability you may be facing, and offer sound legal advise for your next steps.

Related Resources:

  • Find a Local Employment Lawyer (FindLaw’s Lawyer Directory)
  • Employee Safety: What Are My OSHA Obligations? (FindLaw Free Enterprise)
  • Equitable Rules Cannot Override Clear Terms of ERISA Plan (FindLaw InHouse Corporate Counsel)

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