Employment Laws: The Five Major Categories at a Glance
Employment laws are governed by a series of regulatory agencies and are designed to:
- Protect the rights of individual employees.
- Govern employer obligations.
Employment law overall is broad, but it’s divided into five distinct categories:
1. Wage and Hour Laws
The Fair Labor Standards Act (FLSA), overseen by the Department of Labor, sets federal laws for fair pay and work hours.
They guarantee fair compensation for hours worked and protect workers from employer exploitation.
- Minimum wage: The federal minimum wage is $7.25/hour; some states have higher or lower minimum wages. Employees are entitled to receive whichever minimum wage is higher (state vs. federal).
- Overtime: All non-exempt employees must receive at least 1.5 x regular pay for hours worked over 40 in a standard workweek.
- Tipped workers: If tips received do not meet minimum wage amounts, employers must contribute a tip credit to equal the minimum wage and overtime compensation.
- Hours worked: All hours spent on duty or on the employer's premises have to be compensated.
- Recordkeeping: Certain records must be maintained for non-exempt workers (see below).
- Child labor: Defines permissible and non-permissible work for workers aged 17 and under.
- Wage garnishment: Limits the amount of employee wages that can be garnished in any one week.
2. Workplace Safety Laws
Governed by the Occupational Safety and Health Administration (OSHA), workplace safety laws protect employees from unsafe working conditions.
This includes complying with all OSHA health and safety standards. Employers must:
- Maintain a safe workplace that is free from hazards.
- Provide information and training about workplace safety.
- Provide adequate protective wear and equipment at no cost to employees.
- Keep records of all work-related injuries and illnesses.
- Report serious incidents.
Employees are within their rights to request an OSHA inspection if they believe that workplace conditions are unsafe.
3. Anti-Discrimination Laws
Overseen by the Equal Employment Opportunity Commission (EEOC), anti-discrimination laws are in place to prevent employers from making decisions that unfairly treat employees or job applicants based on the following protected characteristics:
- Race
- National origin
- Color
- Sex
- Religion
- Age
- Disability
- Genetic information
Essentially, protected characteristics are defined as anything unrelated to an individual’s ability to perform the job.
The laws exist so that any employment decisions are based on qualifications, performance, and merit, not personal traits or stereotypes.
One of EEOC’s key statements is as follows:
The laws enforced by EEOC prohibit an employer or other covered entity from using neutral employment policies and practices that have a disproportionately negative effect on applicants or employees of a particular race, color, religion, sex (including transgender status, sexual orientation, and pregnancy), or national origin, or on an individual with a disability or class of individuals with disabilities, if the policies or practices at issue are not job-related and necessary to the operation of the business.
4. Employee Benefits Laws
Employee benefits laws are a collection of frameworks that support worker well-being, security, and work/life balance.
They consist of the following:
- Family and Medical Leave Act (FMLA): Requires covered employers to provide eligible employees with up to 12 weeks of unpaid, job-protected leave per year.
- Employee Retirement Income Security (ERISA): Regulates employer-sponsored retirement and health benefits and sets minimum standards for plan participation.
- Affordable Care Act (ACA): Expands access to health insurance and imposes minimum requirements for employer-sponsored health coverage.
- Unemployment insurance: Provides insurance coverage for eligible workers who lose their jobs through no fault of their own.
5. Labor Relations Laws
Finally, this set of laws governs the relationship between the employer and groups of employees.
Federal labor law is governed by the National Labor Relations Act (NLRA) and the Federal Service Labor-Management Relations Statute, which states that employees have a right to:
- Join forces to improve working conditions and/or wages
- Unionize
- Strike
- Take action collectively
- Talk with other employees about their wages
- Exercise workplace rights without employer retaliation
Regarding unions, Section 7 is a key part of the federal NLRB, and the following passage is frequently referenced within employee handbooks:
Employees have the right to unionize, to join together to advance their interests as employees, and to refrain from such activity. It is unlawful for an employer to interfere with, restrain, or coerce employees in the exercise of their rights.
For example, employers may not respond to a union organizing drive by threatening, interrogating, or spying on pro-union employees, or by promising benefits if they forget about the union.
Who Enforces What?
Here’s a quick overview noting all labor law authorities and what they enforce.
Wages and Hours:
- Authority: Department of Labor, Wage and Hour Division
- Enforces: Fair Labor Standards Act
Workplace Safety:
- Authority: Occupational Safety and Health Administration
- Enforces: Federal workplace safety standards
Anti-Discrimination:
- Authority: Equal Employment Opportunity Commission
- Enforces:
Employee Benefits
- Authority: Department of Labor, Wage and Hour Division
- Enforces: Family and Medical Leave
- Authority: Department of Labor, Employee Benefits Security Administration
- Enforces: Employee Retirement Income Security Act
- Authority: Department of Labor and Internal Revenue Service
- Enforces: Affordable Care Act
- Authority: Department of Labor: Employment and Training Administration
- Enforces: Unemployment Insurance
Labor Relations:
- Authority: National Labor Relations Board
- Enforces: National Labor Relations Act
- Authority: Federal Labor Relations Authority
- Enforces: Federal Service Labor-Management Relations Statute
What Are the Recordkeeping Requirements for Each Employment Law Category?
All employers are required to keep and maintain accurate records for each employment law category:
Wages and Hours
Per non-exempt employee:
- Identifying information
- Hours worked each day and week
- Basis of pay
- Regular hourly rate plus overtime
- Wage deductions and additions
- Total wages per pay period
- View the full recordkeeping requirements
Workplace Safety
- OSHA 300 Log of Work-Related Injuries and Illnesses.
- OSHA 301 Incident Report for each recordable injury/illness
- OSHA 300A Annual Summary
Anti-Discrimination
- All personnel and employment records
- Labor union membership and referral records
- Apprenticeship committee records
- Discrimination charge records
- View the full summary
Employee Benefits
- Plan descriptions, annual reports, and participant communications
- Benefits calculations, eligibility, and contribution records
- Plan financial records
- Basic payroll data, employee hours, and wages
- Dates and hours of FMLA leave taken
- Notices given and received
- Employer policies and documents related to FMLA
- Applicable Large Employers must record and report to the IRS extensive information about health care coverage
Labor Relations
- Collective bargaining agreements
- Union election records
- Payroll and personnel records relevant to bargaining
What Counts as Labor vs. Employment Law?
In the US, labor and employment law are linked, but each serves as its own distinct legal category:
- Federal labor laws: Responsible for governing unionized workforces and the collective rights of worker groups.
- Federal employment laws: Responsible for the broader employee-employer relationship, whether unionized or not.
Put simply, labor law is for collective worker rights, while employment law is for individual worker rights.
Why Are the Terms Often Confused?
There are a few reasons why “labor law” and “employment law” are often mixed up or confused:
- Labor laws fall within the labor relations category of employment law.
- When looking at labor law vs. employment law, there is some overlap in workers' protections from employer retaliation.
- “Labor law” is a catch-all term, often used to describe employment laws.
To make it a little clearer, here’s a quick reference guide highlighting the overlap:
Employer Labor Law Responsibilities
Your organization must abide by several best practices and rules to avoid falling foul of federal labor laws:
- Do not threaten workers or retaliate when the workforce engages in protected activities.
- Do not bribe or make promises to persuade workers not to form a union.
- Do not interrogate employees about their union activities.
- Never surveil or spy on union-related activities.
- Respect rights to discussion and activity over unionization, workplace conditions, and policies.
- Captive audience meetings are illegal. Any anti-union meetings you hold must be voluntary to attend.
- If union action is taken, bargain in good faith.
- Do not establish or control in-house unions. Doing so is illegal.
Federal vs.State Laws
Federal employment laws create a baseline of protections that apply to all states within the USA. They include everything that we have discussed previously in this article.
State employment laws tend to expand on federal protections and provide enhanced security to employees.
Here are a few examples:
- Many states, like California, set a higher minimum wage than the federal $7.25/hour.
- Some states, like New York, mandate paid family or sick leave.
- States may include additional protected categories for discrimination, like sexual orientation or gender identity.
- There are state-run workers' compensation and unemployment schemes.
- 22 states have stricter OSHA standards than federal OSHA.
The general rule of thumb is that between federal and state, the most protective law applies.
For example:
- If the federal minimum wage is $7.25/hour but a state, like Delaware, requires $15/hour, the higher wage prevails.
- In reverse, Georgia has a minimum wage of $5.15/hour. Therefore, the federal minimum applies instead.
Additionally, several cities have implemented laws that go beyond both state and federal rules.
For instance:
- California’s minimum wage is $16.50/hour, but San Francisco has a minimum wage of $19.18/hour.
- Washington state’s minimum wage is $16.66, but Seattle’s is $20.76.
How Time Tracking Supports Compliance with Employment Law
Time tracking plays a key role in helping employers maintain compliance in several areas of employment law:
Wages and Hours Compliance
The FLSA requires employers to pay accurate wages for all hours worked, including overtime. Certain information must be recorded, including working hours and wages.
How time tracking helps:
- Provides an accurate record of hours worked each day and week.
- Documents paid and unpaid breaks, and overtime.
- Generates FLSA-compliant timesheets for recordkeeping.
- Helps verify that employees receive correct pay.
- Allows all staff to track time consistently and adhere to internal timesheet policies.
Workplace Safety Compliance
Employers must comply with rules on maximum working hours in certain industries.
How time tracking helps:
- Setting target hours prevents workers from exceeding maximum hours allowed.
- Time tracking data pinpoints overworked employees.
- Documents work schedules in case of OSHA investigations.
Anti-Discrimination Compliane
Employment laws (EEOC regulations) protect employees from unfair treatment.
How time tracking helps:
- Provides objective evidence of scheduling and workload distribution.
- Protects employers against claims of unfair treatment if hours are tracked consistently across staff.
Employee Benefits Compliance
Eligible employees can take up to 12 weeks of unpaid, job-protected leave for family or medical reasons.
How time tracking helps:
- Tracks work hours to determine FMLA eligibility.
- Provides records of leave taken so workers don’t exceed their entitlement.
