🫂Human Resource Management Unit 2 – Employment Law and Regulations

Key Employment Laws

• Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments
• Family and Medical Leave Act (FMLA) entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave
  • Eligible employees can take up to 12 weeks of unpaid leave per year for qualifying reasons such as the birth or adoption of a child, caring for a seriously ill family member, or the employee's own serious health condition
• Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, job training, and other terms, conditions, and privileges of employment
  • Employers must provide reasonable accommodations to qualified individuals with disabilities unless doing so would cause undue hardship
• Age Discrimination in Employment Act (ADEA) protects applicants and employees 40 years of age or older from discrimination based on age in hiring, promotion, discharge, compensation, terms, conditions, or privileges of employment
• Equal Pay Act (EPA) requires that men and women in the same workplace be given equal pay for equal work, regardless of their sex
• National Labor Relations Act (NLRA) guarantees the right of employees to organize and bargain collectively with their employers, and to engage in other protected concerted activity such as discussing terms and conditions of employment with each other

Discrimination and Equal Opportunity

• Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin
  • Applies to employers with 15 or more employees, including federal, state, and local governments, employment agencies, and labor organizations
• Pregnancy Discrimination Act (PDA) amended Title VII to clarify that discrimination based on pregnancy, childbirth, or related medical conditions constitutes unlawful sex discrimination
• Genetic Information Nondiscrimination Act (GINA) prohibits the use of genetic information in making employment decisions, restricts employers from requesting, requiring, or purchasing genetic information, and strictly limits the disclosure of genetic information
• Uniformed Services Employment and Reemployment Rights Act (USERRA) protects the job rights of individuals who voluntarily or involuntarily leave employment positions to undertake military service or certain types of service in the National Disaster Medical System
• Affirmative action refers to policies and practices designed to increase the representation of historically underrepresented groups (based on race, gender, or other protected characteristics) in employment, education, and other areas
  • Executive Order 11246 requires federal contractors and subcontractors to take affirmative action to ensure equal employment opportunity without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin

Hiring and Recruitment Regulations

• Employers must comply with anti-discrimination laws throughout the hiring process, including job postings, applications, interviews, and selection decisions
• Background checks and pre-employment inquiries must be job-related and consistent with business necessity to avoid potential discrimination claims
  • Fair Credit Reporting Act (FCRA) sets standards for employment background checks conducted by third-party consumer reporting agencies
  • Some states and localities have "ban the box" laws that restrict employers from asking about criminal history on initial job applications
• Immigration Reform and Control Act (IRCA) requires employers to verify the identity and employment authorization of all individuals hired in the United States using Form I-9
• E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States by comparing information from an employee's Form I-9 to data from U.S. Department of Homeland Security and Social Security Administration records
• Employers sponsoring foreign workers for employment-based visas (H-1B, L-1, etc.) must comply with specific requirements and regulations
• Nepotism policies may restrict the hiring of relatives to avoid conflicts of interest or favoritism in the workplace

Wage and Hour Standards

• FLSA requires employers to pay non-exempt employees at least the federal minimum wage (currently $7.25 per hour) and overtime pay at a rate of not less than one and one-half times their regular rate of pay for hours worked over 40 in a workweek
  • Some states and localities have higher minimum wage rates that take precedence over the federal rate
• Employers must properly classify employees as exempt or non-exempt based on their job duties and salary level to determine eligibility for overtime pay
  • Common FLSA exemptions include executive, administrative, professional, outside sales, and certain computer employees
• Employers must maintain accurate records of employees' hours worked and wages paid
• Child labor provisions of the FLSA establish minimum ages for employment and limit the hours and types of work that minors can perform
• Davis-Bacon Act requires payment of prevailing wages and fringe benefits on federally funded or assisted construction projects
• Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees no less than the wage rates and fringe benefits found prevailing in the locality, or the rates contained in a predecessor contractor's collective bargaining agreement

Employee Benefits and Leave Policies

• Employee Retirement Income Security Act (ERISA) sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans
  • Requires plans to provide participants with plan information, including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual, and funding; and requires accountability of plan fiduciaries
• Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances (job loss, reduction in hours, transition between jobs, death, divorce, and other life events)
• Health Insurance Portability and Accountability Act (HIPAA) provides rights and protections for participants and beneficiaries in group health plans, including protections against discrimination based on health factors, special enrollment rights, and privacy and security of health information
• Affordable Care Act (ACA) requires applicable large employers (50 or more full-time employees) to offer health coverage to full-time employees and their dependents or potentially face penalties
• Paid sick leave and paid family leave laws vary by state and locality, with some jurisdictions requiring employers to provide paid time off for certain purposes (illness, caring for a family member, bonding with a new child, etc.)
  • Executive Order 13706 requires federal contractors to provide employees with up to 7 days of paid sick leave annually

Workplace Safety and Health

• Occupational Safety and Health Act (OSH Act) requires employers to provide a safe and healthful workplace free from recognized hazards
  • Occupational Safety and Health Administration (OSHA) sets and enforces standards, provides training, outreach, education, and assistance to promote safe and healthful working conditions
• Employers must comply with OSHA standards, which cover a wide range of workplace hazards, including chemical exposure, electrical safety, fall protection, and machine guarding
• General Duty Clause of the OSH Act requires employers to keep their workplaces free of serious recognized hazards, even if there is no specific OSHA standard addressing the hazard
• Employers must report work-related fatalities to OSHA within 8 hours and inpatient hospitalizations, amputations, or losses of an eye within 24 hours
• OSHA's Hazard Communication Standard (HCS) requires employers to provide information to employees about the identities and hazards of the chemicals they are exposed to in the workplace through safety data sheets, labeling, and training
• Employers must record certain work-related injuries and illnesses on the OSHA 300 Log and post an annual summary (OSHA Form 300A) in the workplace

Termination and Layoff Procedures

• At-will employment doctrine allows employers to terminate employees for any reason, or no reason at all, as long as it is not an illegal reason (discrimination, retaliation, etc.)
  • Some states recognize exceptions to at-will employment, such as implied contracts, public policy violations, or the covenant of good faith and fair dealing
• Employers must comply with anti-discrimination laws when making termination decisions to avoid claims of wrongful discharge
• Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more employees to provide at least 60 calendar days' advance written notice of a plant closing or mass layoff affecting 50 or more employees at a single site of employment
  • Some states have mini-WARN laws with lower thresholds for covered employers and affected employees
• Severance pay is not required by federal law, but may be offered as part of an employment contract, collective bargaining agreement, or company policy
• Employers should conduct exit interviews to gather feedback, ensure the return of company property, and remind departing employees of any continuing obligations (non-compete agreements, confidentiality, etc.)
• Consolidated Omnibus Budget Reconciliation Act (COBRA) requires group health plans to offer continuation coverage to covered employees, former employees, spouses, former spouses, and dependent children when group health coverage would otherwise be lost due to certain events, including termination of employment

Emerging Trends in Employment Law

• Pay equity and salary history bans aim to address wage disparities based on gender, race, or other protected characteristics
  • Some states and localities have enacted laws prohibiting employers from asking about a job applicant's salary history during the hiring process
• Predictive scheduling laws require employers to provide advance notice of work schedules and compensate employees for last-minute changes
  • These laws are designed to provide stability and predictability for workers, particularly in the retail and food service industries
• Paid leave laws are expanding at the state and local level, with more jurisdictions requiring employers to provide paid sick leave, paid family leave, or both
  • Some laws also allow paid leave to be used for "safe time" related to domestic violence, sexual assault, or stalking
• Non-compete agreements are facing increased scrutiny, with some states enacting laws to limit their use or ban them altogether for certain categories of workers (low-wage employees, independent contractors, etc.)
• Independent contractor classification is a growing area of concern, as misclassification can result in violations of wage and hour laws, tax obligations, and employee benefits requirements
  • Some states have adopted the "ABC test" or other stricter standards for determining independent contractor status
• Artificial intelligence (AI) and algorithmic decision-making in employment decisions raise questions about potential bias and discrimination
  • Employers using AI tools for hiring, performance evaluation, or other purposes should ensure they are validated and do not have a disparate impact on protected groups