Strategies of Business Expansion
The primary strategy of growing a company is to expand its operations into other jurisdictions by opening new branches or outlets. Such a strategy allows the company to expand its consumer base and introduce its products or services in new regions. However, a company must ensure that it has enforced effective processes of identifying and managing the risks involved in expanding into new jurisdictions. Clapton Commercial Construction Company must ensure it has a qualified workforce capable of meeting the company’s objectives. The human resource department has the option of recruiting new employees in the new jurisdiction, relocating the company’s current employees, or relocating some employees and recruiting new ones. However, the most appropriate option for Clapton Commercial Construction is relocating some of its current staff and employing new employees in Arizona to fill in the remaining positions. The relocated employees will assume the top management positions in Clapton Commercial Construction’s new offices in its Arizona branch. The option is suitable because it allows the company to stabilize its operations quickly. However, the human resource department must the employment laws in Arizona.
Employment Laws in Arizona
The HR department is critical to the expansion of business operations into new jurisdictions. Some of the crucial activities of the human resource department during business expansion include recruiting new employees and consulting with the current employees on their relocation. However, the most crucial role of the human resource department is to understand and implement the employment laws in the new jurisdictions. Some of the common employment law issues include discipline and discharge, workplace safety, employment policies, employee discrimination, recruitment and hiring, trade secrets, and discipline and discharge among others. Understanding the employment laws in the new jurisdiction is important because it helps in avoiding the consequences of noncompliance with the laws.
Since Clapton Commercial Construction intends to expand its business activities into the state of Arizona, the company’s human resource managers must understand the employment matters in Arizona. Some of the major employment issues that the company must consider in Arizona include the following:
Wages and Hours
Following the approval of Proposition 202, the Arizona state passed a law that specifies the minimum wage offered to employees (Arizona State Senate, 2013). The law allows employees to file complaints against companies that violate the minimum wage laws. However, the Arizona employment law does not offer overtime regulations to private companies. Consequently, Clapton Commercial Construction has the freedom of determining its overtime payments and hours of service.
At-will Employment
The Arizona Employment Protection Act (1996) states that the relationship between the employer and employee is contractual and may end whenever the employer or employee deems necessary. The exception to this regulation is in situations where both parties write and sign the contractual agreements. The Employment Protection Act specifies the conditions that allow employees to sue their employers for breach of contract.
Discrimination
The Civil Rights Act forms part of the Arizona employment laws, and these laws prevent all forms of discrimination against employees (Arizona State Senate, 2013). Another legislation that forms an important component of Arizona’s employment laws is the Americans with Disabilities Act. These laws prevent all forms of discrimination against employees.
Right-to-Work
The right-to-work provision prohibits employers from denying employees job opportunities due to association with labor organizations. The regulation ensures that union and non-union members of the Arizona workforce can secure employment opportunities.
Consequences of Noncompliance
Companies that do not comply with the Arizona employment laws face several consequences that include lawsuits, fines, suspended or revoked licenses, and bad publicity. The Arizona employment law allows workers whose rights have been deprived to file lawsuits against the employers. The lawsuits may result in heavy fines against Clapton Commercial Construction Company, and this would reduce the company’s profit margins. In situations where violations are extreme, the state of Arizona may suspend or revoke the company’s license. Such situations would result in bad publicity for the company.
Recommendations on Compliance
We recommend the following strategies to help Clapton Commercial Construction avoid the negative consequences of not complying with the Arizona employment laws.
- Creating appropriate working environments for the Arizona employees.
- Employing managers who understand the Arizona employment laws.
- Prohibiting discrimination in the recruitment of Arizona employees.
References
Arizona State Senate. (2013). Background brief: Labor employment laws. Web.