Hiring New Employees in Mississippi: A Legal Guide
Hiring employees in Mississippi requires compliance with both federal and state-specific employment laws, including proper documentation, tax requirements, and workplace regulations. Employers must understand Mississippi's at-will employment doctrine, minimum wage requirements, workers' compensation obligations, and anti-discrimination provisions to avoid potential legal issues.
Failure to comply with Mississippi's employment laws can result in significant penalties, including fines, back pay obligations, and potential lawsuits from employees. Establishing proper hiring procedures from the outset helps protect your business and creates a legally sound foundation for employer-employee relationships.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Mississippi Employment-At-Will Doctrine
Mississippi follows the employment-at-will doctrine, which means that without a written employment contract, either the employer or employee can terminate the employment relationship at any time, with or without cause. However, this doctrine has exceptions for discrimination, retaliation, and public policy violations.
Mississippi Worker's Compensation Law
Employers with five or more employees are required to provide workers' compensation insurance coverage. This protects both employers and employees in case of work-related injuries or illnesses. Failure to provide required coverage can result in penalties.
Fair Labor Standards Act (FLSA)
Mississippi employers must comply with federal minimum wage requirements ($7.25/hour) as Mississippi does not have its own minimum wage law. The FLSA also governs overtime pay requirements for non-exempt employees.
Mississippi E-Verify Requirements
Mississippi requires all employers to use E-Verify to check the employment eligibility of all new hires. The Mississippi Employment Protection Act makes it a felony for unauthorized immigrants to accept employment in Mississippi.
Title VII of the Civil Rights Act of 1964
Prohibits employment discrimination based on race, color, religion, sex, or national origin. This federal law applies to Mississippi employers with 15 or more employees and is enforced by the Equal Employment Opportunity Commission (EEOC).
Mississippi Unemployment Insurance Law
Employers must register with the Mississippi Department of Employment Security and pay unemployment insurance taxes. New employers must establish an account within 30 days of hiring their first employee.
New Hire Reporting Requirements
Mississippi employers must report all newly hired or rehired employees to the Mississippi Department of Human Services within 15 days of hire. This information is used primarily for child support enforcement.
Regional Variances
Major Metropolitan Areas
As the capital city, Jackson has additional local ordinances affecting employers. Businesses with 15 or more employees must register with the city's Department of Labor Compliance. Jackson also requires employers to use E-Verify regardless of company size, which is stricter than the state requirement that only applies to employers with 5+ employees.
Coastal employers in Gulfport and Biloxi may be subject to additional requirements related to tourism industry employment. These areas have specific seasonal employment regulations and may have different minimum wage requirements for tipped employees in the hospitality sector.
County-Level Differences
Hinds County has implemented a 'Ban the Box' policy for county employment that prohibits asking about criminal history on initial job applications. While this only directly applies to county positions, many private employers in the area have voluntarily adopted similar practices.
Due to its proximity to Memphis, TN, employers in DeSoto County often need to navigate cross-state employment issues. Local ordinances may require additional disclosures for employees who work across state lines, and employers may need to comply with certain Tennessee employment laws for employees who perform work in both states.
Special Economic Zones
Due to the casino and entertainment industry, Tunica County has specific employment regulations for gaming workers. Background check requirements are more stringent, and there are special licensing requirements for certain positions within the gaming industry.
Employers near the Stennis Space Center may be subject to federal contractor employment requirements if they service NASA or other federal entities. This can include specialized background checks, security clearances, and compliance with federal contractor wage and hour provisions.
Suggested Compliance Checklist
Create a compliant job posting
0 days after startingCreate a job posting that complies with Mississippi employment laws. Avoid discriminatory language related to protected characteristics such as race, color, religion, sex, national origin, disability, or age. Mississippi follows federal anti-discrimination laws but does not have additional state-specific protected classes.
Prepare Employment Application Form
0 days after startingCreate an application form that collects necessary information while complying with Mississippi and federal laws. Avoid questions about age, race, religion, disability, or other protected characteristics. Include authorization for background checks and employment verification.
Conduct interviews and select candidate
14 days after startingWhen interviewing, ensure questions focus on job-related qualifications and avoid inquiries about protected characteristics. Document the selection process to demonstrate non-discriminatory hiring practices.
Prepare Employment Offer Letter
21 days after startingDraft an offer letter outlining the position, compensation, start date, and at-will employment status (Mississippi is an at-will employment state). Include any contingencies such as background checks or drug testing.
Prepare Employment Contract (if applicable)
21 days after startingIf using a formal employment contract rather than at-will employment, draft a contract that clearly outlines terms of employment, compensation, benefits, duties, and termination conditions. Note that Mississippi generally presumes at-will employment unless specifically contracted otherwise.
Prepare Non-Disclosure Agreement
21 days after startingDraft an NDA to protect confidential business information. In Mississippi, NDAs are generally enforceable if they protect legitimate business interests and are reasonable in scope, duration, and geographic area.
Prepare Non-Compete Agreement (if applicable)
21 days after startingIf needed, draft a non-compete agreement. Mississippi courts generally enforce reasonable non-compete agreements that protect legitimate business interests. Ensure the agreement is reasonable in time (typically 1-2 years), geographic scope, and prohibited activities.
Prepare Background Check Authorization Form
21 days after startingCreate a form that complies with the Fair Credit Reporting Act (FCRA) for conducting background checks. Obtain written consent from the candidate before conducting any background checks.
Conduct background checks
28 days after startingAfter receiving signed authorization, conduct appropriate background checks. Follow FCRA requirements if using a third-party service, including providing pre-adverse action and adverse action notices if negative information affects hiring decisions.
Register with Mississippi Department of Employment Security (MDES)
30 days after startingIf not already registered, register with MDES for unemployment insurance. All employers with one or more employees in Mississippi must register within 30 days of hiring their first employee.
Register with Mississippi Department of Revenue
30 days after startingRegister for state income tax withholding if not already registered. Employers must withhold Mississippi income tax from employee wages.
Obtain workers' compensation insurance
30 days after startingMississippi law requires employers with 5 or more employees to carry workers' compensation insurance. Even if you have fewer employees, consider obtaining coverage as it provides protection for both employer and employees.
Complete Form I-9 Employment Eligibility Verification
33 days after startingFederal law requires all employers to verify employment eligibility using Form I-9 within 3 business days of hire. The employee must complete Section 1 on or before their first day, and the employer must complete Section 2 within 3 business days of the employee's start date.
Complete Form W-4 Employee's Withholding Certificate
33 days after startingHave the employee complete a federal W-4 form to determine federal income tax withholding. This must be completed before the first payroll.
Complete Mississippi State Tax Withholding Form
33 days after startingHave the employee complete Mississippi's state tax withholding form (Form 89-350) to determine state income tax withholding.
Prepare Direct Deposit Authorization Form
33 days after startingCreate a form for employees to authorize direct deposit of their paychecks. While not required by Mississippi law, this is a common practice that benefits both employers and employees.
Prepare Emergency Contact Information Form
33 days after startingCreate a form to collect emergency contact information for the new employee. This is a best practice for workplace safety and emergency response.
Prepare Benefits Enrollment Forms
33 days after startingIf offering benefits such as health insurance, retirement plans, or other voluntary benefits, prepare the necessary enrollment forms. Note any waiting periods that may apply before benefits eligibility.
Prepare Employee Handbook
33 days after startingCreate or update your employee handbook to include company policies, procedures, and expectations. Include policies on anti-discrimination, harassment, leave, benefits, discipline, and other important workplace matters. Ensure compliance with Mississippi and federal employment laws.
File New Hire Report with Mississippi Department of Human Services
45 days after startingMississippi law requires employers to report all new hires within 15 days of hire to the Mississippi Department of Human Services. This can be done online through the Mississippi State Directory of New Hires.
Display required workplace posters
33 days after startingEnsure all required federal and Mississippi workplace posters are displayed in a conspicuous location. These include posters related to minimum wage, workplace safety, equal employment opportunity, family and medical leave, and unemployment insurance.
Enroll employee in E-Verify (if applicable)
33 days after startingWhile not required for all Mississippi employers, state law requires E-Verify for employers with 250 or more employees. If applicable, enroll the new employee in E-Verify within 3 business days of hire.
Schedule new employee orientation
33 days after startingPlan and conduct an orientation to introduce the new employee to company policies, procedures, culture, and job responsibilities. Review the employee handbook and have the employee acknowledge receipt.
Set up payroll for the new employee
33 days after startingAdd the employee to your payroll system. Ensure proper tax withholding based on W-4 and state withholding forms. Mississippi requires at least semi-monthly payment of wages.
Task | Description | Document | Days after starting |
---|---|---|---|
Create a compliant job posting | Create a job posting that complies with Mississippi employment laws. Avoid discriminatory language related to protected characteristics such as race, color, religion, sex, national origin, disability, or age. Mississippi follows federal anti-discrimination laws but does not have additional state-specific protected classes. | - | 0 |
Prepare Employment Application Form | Create an application form that collects necessary information while complying with Mississippi and federal laws. Avoid questions about age, race, religion, disability, or other protected characteristics. Include authorization for background checks and employment verification. | Employment Application Form | 0 |
Conduct interviews and select candidate | When interviewing, ensure questions focus on job-related qualifications and avoid inquiries about protected characteristics. Document the selection process to demonstrate non-discriminatory hiring practices. | - | 14 |
Prepare Employment Offer Letter | Draft an offer letter outlining the position, compensation, start date, and at-will employment status (Mississippi is an at-will employment state). Include any contingencies such as background checks or drug testing. | Employment Offer Letter | 21 |
Prepare Employment Contract (if applicable) | If using a formal employment contract rather than at-will employment, draft a contract that clearly outlines terms of employment, compensation, benefits, duties, and termination conditions. Note that Mississippi generally presumes at-will employment unless specifically contracted otherwise. | Employment Contract | 21 |
Prepare Non-Disclosure Agreement | Draft an NDA to protect confidential business information. In Mississippi, NDAs are generally enforceable if they protect legitimate business interests and are reasonable in scope, duration, and geographic area. | Non-Disclosure Agreement | 21 |
Prepare Non-Compete Agreement (if applicable) | If needed, draft a non-compete agreement. Mississippi courts generally enforce reasonable non-compete agreements that protect legitimate business interests. Ensure the agreement is reasonable in time (typically 1-2 years), geographic scope, and prohibited activities. | Non-Compete Agreement | 21 |
Prepare Background Check Authorization Form | Create a form that complies with the Fair Credit Reporting Act (FCRA) for conducting background checks. Obtain written consent from the candidate before conducting any background checks. | Background Check Authorization Form | 21 |
Conduct background checks | After receiving signed authorization, conduct appropriate background checks. Follow FCRA requirements if using a third-party service, including providing pre-adverse action and adverse action notices if negative information affects hiring decisions. | - | 28 |
Register with Mississippi Department of Employment Security (MDES) | If not already registered, register with MDES for unemployment insurance. All employers with one or more employees in Mississippi must register within 30 days of hiring their first employee. | - | 30 |
Register with Mississippi Department of Revenue | Register for state income tax withholding if not already registered. Employers must withhold Mississippi income tax from employee wages. | - | 30 |
Obtain workers' compensation insurance | Mississippi law requires employers with 5 or more employees to carry workers' compensation insurance. Even if you have fewer employees, consider obtaining coverage as it provides protection for both employer and employees. | - | 30 |
Complete Form I-9 Employment Eligibility Verification | Federal law requires all employers to verify employment eligibility using Form I-9 within 3 business days of hire. The employee must complete Section 1 on or before their first day, and the employer must complete Section 2 within 3 business days of the employee's start date. | Form I-9 Employment Eligibility Verification | 33 |
Complete Form W-4 Employee's Withholding Certificate | Have the employee complete a federal W-4 form to determine federal income tax withholding. This must be completed before the first payroll. | Form W-4 Employee's Withholding Certificate | 33 |
Complete Mississippi State Tax Withholding Form | Have the employee complete Mississippi's state tax withholding form (Form 89-350) to determine state income tax withholding. | State Tax Withholding Form | 33 |
Prepare Direct Deposit Authorization Form | Create a form for employees to authorize direct deposit of their paychecks. While not required by Mississippi law, this is a common practice that benefits both employers and employees. | Direct Deposit Authorization Form | 33 |
Prepare Emergency Contact Information Form | Create a form to collect emergency contact information for the new employee. This is a best practice for workplace safety and emergency response. | Emergency Contact Information Form | 33 |
Prepare Benefits Enrollment Forms | If offering benefits such as health insurance, retirement plans, or other voluntary benefits, prepare the necessary enrollment forms. Note any waiting periods that may apply before benefits eligibility. | Benefits Enrollment Forms | 33 |
Prepare Employee Handbook | Create or update your employee handbook to include company policies, procedures, and expectations. Include policies on anti-discrimination, harassment, leave, benefits, discipline, and other important workplace matters. Ensure compliance with Mississippi and federal employment laws. | Employee Handbook | 33 |
File New Hire Report with Mississippi Department of Human Services | Mississippi law requires employers to report all new hires within 15 days of hire to the Mississippi Department of Human Services. This can be done online through the Mississippi State Directory of New Hires. | New Hire Reporting Form | 45 |
Display required workplace posters | Ensure all required federal and Mississippi workplace posters are displayed in a conspicuous location. These include posters related to minimum wage, workplace safety, equal employment opportunity, family and medical leave, and unemployment insurance. | - | 33 |
Enroll employee in E-Verify (if applicable) | While not required for all Mississippi employers, state law requires E-Verify for employers with 250 or more employees. If applicable, enroll the new employee in E-Verify within 3 business days of hire. | - | 33 |
Schedule new employee orientation | Plan and conduct an orientation to introduce the new employee to company policies, procedures, culture, and job responsibilities. Review the employee handbook and have the employee acknowledge receipt. | - | 33 |
Set up payroll for the new employee | Add the employee to your payroll system. Ensure proper tax withholding based on W-4 and state withholding forms. Mississippi requires at least semi-monthly payment of wages. | - | 33 |
Frequently Asked Questions
When hiring a new employee in Mississippi, you must complete several forms: 1) Federal Form I-9 to verify employment eligibility, 2) Federal Form W-4 for tax withholding, 3) Mississippi Form 89-350 for state tax withholding, 4) New hire reporting to the Mississippi Department of Human Services within 15 days of hire, and 5) Register with the Mississippi Department of Employment Security for unemployment insurance if you're a new employer.
Yes, Mississippi is an at-will employment state. This means that, absent a contract specifying otherwise, either the employer or employee can terminate the employment relationship at any time, with or without cause, and with or without notice. However, employers still cannot terminate employees for illegal reasons such as discrimination or retaliation.
Mississippi does not have a state minimum wage law. Therefore, the federal minimum wage of $7.25 per hour applies to most employees in the state. Some exceptions exist for certain types of employees, such as tipped workers, who may be paid a lower direct wage as long as their tips bring their total hourly earnings to at least the federal minimum.
Yes, Mississippi law requires most employers with five or more employees to provide workers' compensation insurance. However, there are some exceptions, including domestic and farm labor. Even if you have fewer than five employees, providing workers' compensation insurance is still recommended to protect both your business and your employees.
Yes, Mississippi employers must display certain workplace posters, including federal posters such as the Fair Labor Standards Act, OSHA, Equal Employment Opportunity, Family and Medical Leave Act (for eligible employers), and Employee Polygraph Protection Act. Mississippi-specific posters include the Unemployment Insurance poster and Workers' Compensation poster. These must be displayed in a prominent location accessible to all employees.
Yes, Mississippi employers can require pre-employment drug testing. Mississippi has a voluntary drug-free workplace program that provides workers' compensation premium discounts to participating employers. If you implement such a program, you must provide written notice to job applicants that drug testing is required and follow specific procedures for testing and confidentiality of results.
Mississippi follows federal overtime laws under the Fair Labor Standards Act (FLSA). Non-exempt employees must receive overtime pay at a rate of at least 1.5 times their regular pay rate for hours worked beyond 40 in a workweek. Certain employees may be exempt from overtime requirements, including executive, administrative, and professional employees who meet specific salary and duty requirements.
Yes, all employers in Mississippi, as in all U.S. states, must verify an employee's eligibility to work in the United States by completing Form I-9 within three business days of the employee's first day of work. You must examine documents that establish identity and employment authorization and keep the completed I-9 form for either three years after the date of hire or one year after employment ends, whichever is later.