Employment Laws: Us Global Reach Explained

As the world's economy becomes increasingly globalized, companies are employing workers in foreign countries, and these employees may be unsure of their rights and protections. Generally, federal US employment laws apply only to employees who work in the United States or its territories. However, there are exceptions, and some major US employment laws have extraterritorial reach.

The Fair Labor Standards Act (FLSA)

The FLSA applies to employment within any state of the United States, the District of Columbia, or any territory or possession of the United States. This includes Puerto Rico, the Virgin Islands, the outer Continental Shelf, American Samoa, Guam, Wake Island, Eniwetok Atoll, Kwajalein Atoll, and Johnston Island. An employee working in a foreign country is not protected by the FLSA, even if their employer has its main office in the United States. However, at least one court has found that if a portion of a workweek is worked within a US territory, the FLSA would apply to that workweek (Wirtz v. Healy, 227 F. Supp. 123 (M.D. Ill. 1964)).

The FLSA sets the federal minimum wage, which was last increased in 2009 to $7.25 per hour. It is important to note that many states also have their own minimum wage laws, and employees are entitled to the higher minimum wage when subject to both state and federal minimum wage laws. The act also mandates overtime pay for employees working over 40 hours per week, requiring that they receive at least one and a half times their regular pay rate for hours worked beyond 40 in a workweek.

The FLSA also includes provisions to protect children from exploitation in the workforce. These regulations set the minimum ages for employment and limit the number of hours that minors can work, especially during school hours. Additionally, the FLSA prohibits discrimination based on gender and age in wages and has been amended to include protections against age discrimination.

The FLSA covers employers whose annual sales total $500,000 or more or are engaged in interstate commerce. This includes employers who regularly use the US mail, telephones, or the internet to contact other states. The act applies to workers engaged in interstate commerce or the production of goods for interstate commerce, as well as domestic service workers, employees of hospitals, educational institutions, and public agencies.

While the FLSA provides important protections for workers, it does not cover all workers and workplaces. Exemptions exist for certain types of employees, such as computer workers, independent contractors, and outside salespeople. Additionally, the FLSA does not require compensation for travel time to and from the workplace, vacation or sick pay, meal or rest periods, premium pay for weekend work, or immediate payment of final wages to terminated employees.

Title VII of the Civil Rights Act

The Equal Employment Opportunity Commission (EEOC) enforces Title VII and can investigate, mediate, and file lawsuits on employees' behalf. Employees must file a complaint of discrimination with the EEOC within 180 days of learning of the discrimination or they may lose the right to file suit.

The Age Discrimination in Employment Act (ADEA)

The ADEA applies to US citizens working abroad if they are employed by a US firm or a company controlled by a US firm. This includes US citizens employed outside the United States by a foreign corporation controlled by a US employer. However, the ADEA includes a foreign laws defence, which allows an employer to avoid liability for violating the ADEA if they can prove that complying with the law would cause them to violate the laws of the foreign country in which the employee is working.

The ADEA was amended by the Older Workers Benefit Protection Act of 1990 and the Civil Rights Act of 1991. It is important to note that the ADEA does not protect workers under the age of 40, although some states have laws that protect younger workers from age discrimination.

The Americans with Disabilities Act (ADA)

Federal U.S. employment laws typically apply only to those who work in the United States or its territories. However, there are a few exceptions, including The Americans with Disabilities Act (ADA). This act applies to U.S. citizens who are either employed outside the United States by a U.S. firm or a company under the control of a U.S. firm.

The ADA is a civil rights law that prohibits discrimination against individuals with disabilities in many areas of public life, including jobs, schools, transportation, and many public and private places that are open to the general public. The purpose of the law is to ensure that people with disabilities have the same rights and opportunities as everyone else. The ADA gives civil rights protections to individuals with disabilities, similar to those provided to individuals on the basis of race, colour, sex, national origin, age, and religion. It guarantees equal opportunities for individuals with disabilities in public accommodations, employment, transportation, state and local government services, and telecommunications.

The ADA is divided into five titles (or sections) that relate to different areas of public life. Title I (Employment) is designed to help people with disabilities access the same employment opportunities and benefits available to people without disabilities. Employers must provide reasonable accommodations to qualified applicants or employees. A reasonable accommodation is any modification or adjustment to a job or the work environment that will enable an applicant or employee with a disability to participate in the application process or perform essential job functions. Title I defines disability, establishes guidelines for the reasonable accommodation process, addresses medical examinations and inquiries, and defines "direct threat" when there is a significant risk of substantial harm to the health or safety of the individual employee with a disability or others.

The Uniformed Services Employment and Reemployment Rights Act (USERRA)

USERRA's main purpose is to prevent employers from discriminating against military employees, whether by firing them, withholding promotions or raises, or making their jobs more difficult than for others in similar roles. Any discriminatory action will be considered a violation of the Act if the military service was a "motivating factor". Employees may have different remedies, such as an injunction against being fired for a period of time or monetary damages. Most claims are informally resolved through the Secretary of Labor, but employees may also bring a claim in court or through arbitration.

Another key provision of USERRA requires employers to rehire most veterans to their previous positions after returning from service. The rehired employee must be given the same seniority, status, and pay as if they had never left, which may mean rehiring employees on better terms. To qualify for this treatment, a veteran must have given the employer proper notice of future service and must start employment again soon after finishing their military service. This provision does not apply to employees who are in uniformed services for less than 32 days. Those serving between 32 and 180 days cannot be fired by the employer for at least 180 days upon their return, with certain exceptions, and a year for those serving more than 180 days.

There are some exceptions that may disqualify an employee from these protections. For example, an employee cannot serve in the military for more than five years with the same employer and still be guaranteed employment after their service. Additionally, an employer may not have to rehire an employee if they can prove that doing so is highly impractical due to changes in the business or significant financial difficulties.

Frequently asked questions