Employment Laws

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Employment law compliance is a foundational HR responsibility that protects employees and shields organizations from costly legal liability.

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What are employment laws?

Employment laws and regulations govern the relationship between employers and employees and protect employees from discrimination, mistreatment, and other workplace misconduct.

Image showing the meaning of employment laws

Overall, employment laws are in place to protect employees from mistreatment and discrimination, to ensure that they are paid a fair wage, and to provide them with certain benefits and rights. Employers are expected to comply with these laws and to provide a safe and fair work environment for their employees.

Types of employment laws:

  1. Minimum wage laws: These laws set the minimum hourly wage employers must pay their employees.
  2. Overtime laws require employers to pay employees time-and-a-half for any hours worked over a certain number of hours per week.
  3. Anti-discrimination laws prohibit employers from discriminating against employees based on their race, gender, age, religion, national origin, disability, or other protected characteristics.
  4. Family and Medical Leave Act (FMLA): This law in the United States provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons.
  5. Workers’ compensation laws: These laws require employers to provide benefits to employees who are injured on the job.
  6. Health and safety laws require employers to provide employees with a safe and healthy work environment.
  7. Retirement and pension laws: These laws regulate the retirement benefits that employers must provide to their employees.
  8. Labor laws: These laws regulate the rights of employees to form and join unions and the rights of employers to manage their workforce.

What are the benefits of employment law?

Here are a few benefits of employment law: HBR’s employment law research SHRM’s employment law guidance

  1. Protecting employee rights: Employment laws protect the rights of employees by ensuring that they are treated fairly and not discriminated against based on factors such as race, gender, age, or disability.
  2. Ensuring fair pay and benefits: Employment laws ensure that employees receive fair pay and benefits, such as minimum wage, overtime pay, and health insurance.
  3. Providing job security: Employment laws protect employees from wrongful termination or discrimination based on protected characteristics.
  4. Promoting safe and healthy working conditions: Employment laws promote safe and healthy working conditions by ensuring that employers provide a safe working environment and take steps to prevent workplace injuries and illnesses.
  5. Providing time off: Employment laws provide time off for employees, such as vacation time, sick leave, and family and medical leave.

Employment law compliance is a foundational HR responsibility that protects employees and shields organizations from costly legal liability. Using objective assessments and a structured hiring plan drives improvement, helping organizations attract and retain top talent.

Frequently asked questions

Employment laws are the body of federal, state, and local statutes, regulations, and court decisions that govern the relationship between employers and employees : covering hiring, compensation, benefits, working conditions, discrimination, termination, and workplace safety. They establish minimum standards that all covered employers must meet, with employees retaining the right to negotiate better terms.

Key federal employment laws: FLSA (minimum wage and overtime), Title VII (employment discrimination), ADEA (age discrimination), ADA (disability), FMLA (family and medical leave), OSHA (workplace safety), NLRA (collective bargaining), WARN Act (mass layoff notice), ERISA (benefits), Equal Pay Act (pay equity), GINA (genetic information), USERRA (military leave), and IRCA (immigration and work authorization). Each covers different aspects of the employment relationship.

Federal law sets minimum standards. States may provide greater protections but cannot provide less than federal law. States frequently expand: minimum wage (most states exceed federal $7.25), anti-discrimination protections (adding categories like sexual orientation, weight, credit history), paid leave requirements (many states mandate paid family leave), non-compete restrictions (California effectively bans them), predictive scheduling requirements, and pay transparency mandates. Multi-state employers must comply with the most protective standard in each jurisdiction.

Consequences vary by law: FLSA violations : back wages plus liquidated damages (doubling), civil penalties for willful violations. Title VII : compensatory and punitive damages (capped by employer size), attorney fees. OSHA : civil penalties up to $16,131 per violation ($161,000+ for willful). WARN Act : back pay and benefits for up to 60 days. State agencies may impose additional penalties. Reputational damage and litigation costs often exceed the direct penalties.

Best practices: subscribe to SHRM’s legislative and regulatory update services, follow the DOL and EEOC’s regulatory agendas, engage employment counsel for jurisdiction-specific guidance, conduct annual HR compliance audits, join HR professional associations for peer learning, attend continuing education seminars, and monitor state and local legislative activity (where the most dynamic changes are occurring : particularly around leave, pay transparency, and worker classification).

Employment law broadly governs the employer-employee relationship for all employees. Labor law specifically governs the collective aspects of employment : union organizing rights, collective bargaining, strikes, and the NLRA framework for employer-union-employee relations. Employment law is primarily individual; labor law is primarily collective. Both are components of the overall legal framework, but HR professionals in non-union environments primarily focus on employment law.