|
Running a farm business is no small job. Between planting, harvesting, caring for livestock, and tracking markets, it’s easy to see why labor and employment laws might not be at the top of your list. But the reality is this: every agricultural operation, big or small, needs to pay attention to these rules. Ignoring them can create major headaches down the road.
We often write about labor and employment laws in agriculture, but we don’t always take the time to talk about the why. Why should farm employers care about compliance? The obvious answer is that failing to follow the law can lead to fines, penalties, or even criminal consequences. But there is another side to it: compliance is also about smart risk management. Too often, that part of the conversation gets overlooked.
In this post, we will dig into why labor and employment compliance matters for every farm employer, no matter the size of your operation, the number of workers you hire, or whether your team is made up of family, neighbors, or seasonal help. We will also be using this post to kick off a new series of posts, where we will break down labor and employment laws into bite-sized, practical pieces. The goal is to help Ohio producers understand their obligations and share best practices that can reduce risks and strengthen their businesses.
Compliance = Risk Management
As we have mentioned before, ignoring labor and employment laws can bring direct legal consequences. But there is another side to compliance that deserves attention: risk management.
Fun fact: not every federal or state labor law applies to every employer. Many laws have size thresholds or exceptions/exemptions for certain types of employers. For example, the federal Americans with Disabilities Act (ADA) only applies to employers with 15 or more employees. Similarly, Ohio’s anti-discrimination law generally applies to employers with four or more employees.
So, what about a small farm with three or fewer workers? Technically, some of these anti-discrimination rules do not apply. But that does not mean you are off the hook completely. A job applicant or employee who feels they were treated unfairly because of their race, sex, age, disability, religion, national origin, or military status can still file a complaint with the Ohio Civil Rights Commission. Even if the farm is ultimately found not liable, the process of defending against a claim costs time, money, and stress. And in a close-knit farming community, just the perception of discrimination can damage relationships with workers, customers, and neighbors.
There is also the bigger challenge many producers face: finding and keeping a reliable workforce. Workers are more likely to stay, and return season after season, when they feel respected, treated fairly, and confident that their employer is following good practices. Compliance is not just about avoiding penalties; it’s about building a safe, fair workplace that encourages loyalty and productivity.
We have focused here on discrimination laws as an example, but the same principle applies across the board. Many labor laws including wage and hour rules, harassment policies, and safety standards may or may not apply to a particular farm depending on its size or structure. Still, choosing to follow these standards can pay off. Voluntarily adopting recognized best practices provides a layer of protection if disputes arise, shows foresight if laws change, and helps resolve workplace issues before they turn into legal claims.
At the end of the day, following labor and employment laws, even when they do not technically apply, is a smart risk management strategy. It helps farms keep good workers, avoid conflicts, and maintain their reputation as fair, responsible employers. And those benefits can be just as valuable as steering clear of legal penalties.
“Employing” Family Members
As we mentioned earlier, this post kicks off a new blog series for Ohio farm employers on labor and employment law. Our goal is to clear up misconceptions, highlight common assumptions, and break down technicalities in the law so that employers can re-evaluate their practices, stay compliant, and avoid costly headaches.
Our first topic: employing family members.
Many Ohio farms are family-owned and operated, which means it is common to see relatives working side by side. Depending on who you ask, that can be a wonderful experience – or a recipe for disaster. What farmers need to understand, though, is that in most cases, family members are still considered employees.
Yes, there are exceptions depending on the structure of the business, and some family members may be exempt from certain wage or tax requirements. But generally speaking, employing family does not mean you are off the hook for employment law compliance. For example, in Ohio, even one employee triggers the requirement to carry workers’ compensation coverage. Federally, employers typically need to issue a W-2 to family employees. Blood or marriage ties do not erase those obligations.
So, does every farm follow these rules to the letter? Realistically, no. Many well-intentioned family operations are not fully compliant with all applicable labor and employment laws. Why? Two main reasons:
- Limited enforcement. Governmental agencies responsible for enforcing labor and employment laws do not have the resources to audit or investigate every farm. But if you “win” the audit lottery, you will be expected to demonstrate compliance.
- Few complaints. Issues often do not come to light unless a worker files a lawsuit or complaint. And while many assume a family member would never sue, that is not a guarantee. Anyone who has seen family disagreements knows how quickly emotions can escalate.
That is why it is risky to assume family employees are somehow “different.” A dispute between relatives can turn into a legal problem just like any other workplace conflict. Treating family workers with the same seriousness as non-family employees is the best way to protect your farm, your business, and yes – even your family relationships.
Conclusion
In truth, labor and employment compliance might never become an issue on your farm. But as the old saying goes, “never say never.” Following these laws is not just about avoiding penalties – it is also a smart risk management strategy. Compliance can help prevent or quickly resolve disputes that drain time, energy, and already thin margins. Just as importantly, it brings peace of mind, clarity, and stability – intangibles that can be some of your farm’s most valuable assets.
|
