Employment Law: Universal Rules For All Workplaces

Employment law is a broad and extensive area of law that covers the rights, obligations, and responsibilities within the employer-employee relationship. It includes laws and regulations from federal, state, and local sources, and understanding them can empower employees to know their rights. The laws that apply to a specific workplace depend on factors such as location, the number of employees, annual revenue, and the minimum number of employees specified in the particular statute. While federal laws set the standard, many states have implemented additional workplace laws that offer further protection for employees.

Workplace safety

The OSH Act ensures several rights for employees, including the right to:

• Receive training on workplace hazards and how to avoid harm.
• Make a confidential safety or health complaint to OSHA to request an inspection of the workplace.
• Make a complaint to OSHA without fear of retaliation or discrimination.
• Participate in OSHA inspections of the workplace if they wish to.
• Obtain documentation on work-related injuries and illnesses.
• Access copies of any tests done to measure workplace hazards.

Under the OSH Act, OSHA has established several safety standards to address specific concerns. One of the most commonly cited standards relates to hazard communication. Chemical manufacturers and importers are required to classify all chemicals, and employers must inform their employees about any hazardous chemicals they will be working with. Employers must also keep safety data sheets readily available for any hazardous chemicals they receive.

Another important safety standard relates to fall protection, particularly in the construction industry. Employers are responsible for providing fall protection systems and ensuring that working and walking surfaces are safe for employees.

Other common safety standards include:

• Construction scaffolding.
• Ladder safety.
• Lockout/tagout of dangerous machinery.
• Fall prevention.
• Width of aisles.
• Minimum number of exit routes.
• Storage and use of hazardous materials.
• Access to potable water.
• Conditions where personal protective gear is required, as well as the type of gear.

To ensure compliance with workplace safety laws, OSHA investigators may carry out announced or unannounced inspections at worksites. Violations can result in penalties and fines for employers. These inspections help to reduce workplace accidents, illnesses, and injuries.

Wages and benefits

Minimum Wage

The Fair Labor Standards Act (FLSA) sets the standard for minimum hourly wages, which currently stands at $7.25 per hour. However, states may set their own minimum wage rates, and in cases where an employee is subject to both state and federal minimum wage laws, they are entitled to the higher of the two. For example, in 2024, the minimum wage in California is $16 per hour, while in New York it is $16 per hour in New York City and $15 per hour in the rest of the state.

Overtime Compensation

Overtime compensation is the amount that employers are required to pay employees for working over 40 hours a week. This is typically at a higher rate of pay than their regular rate, usually one-and-a-half times the regular rate.

Wage Garnishment

Wage garnishment occurs when an employer withholds part of an employee's earnings to pay off a creditor. This is regulated under the Consumer Credit Protection Act, which is administered by the Wage and Hour Division.

Retirement Benefits

The Employee Retirement Income Security Act (ERISA) governs how companies administer healthcare benefits and pension plans. It requires employers to manage plans according to a certain set of standards, with the main purpose of ensuring that retirement funds and other benefits are managed for the "exclusive benefit" of the participants.

Health Insurance Benefits

Many employers offer health insurance benefits to their employees, although it is not a requirement. However, once an employer offers this benefit, federal discrimination laws and healthcare plan regulations apply. For example, employers may not refuse coverage to individual employees. Additionally, the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to maintain their employer-sponsored health care plan for up to 18 months after leaving their jobs, although it is at their own expense.

Discrimination

The US Constitution and federal statutes provide a framework for anti-discrimination laws. The Fifth and Fourteenth Amendments of the US Constitution limit the power of federal and state governments to discriminate, guaranteeing individuals equal protection under the law.

Federal laws, such as the Civil Rights Act of 1964 and its subsequent amendments, prohibit specific types of job discrimination. The Civil Rights Act of 1964, in Title VII, makes it illegal for employers to discriminate based on race, colour, religion, sex, or national origin. This includes discrimination in hiring, firing, compensation, and other terms and conditions of employment.

The Age Discrimination in Employment Act (ADEA) protects workers aged 40 and above from unfair treatment, such as being passed over for promotions in favour of younger employees.

The Equal Pay Act of 1963 prohibits employment discrimination based on gender, ensuring that men and women in the same workplace receive equal pay for equal work.

The Americans with Disabilities Act (ADA) prohibits discrimination based on physical or mental disabilities, requiring employers to make reasonable accommodations for employees with disabilities, unless doing so causes undue hardship.

The Pregnancy Discrimination Act (PDA) prohibits discriminatory treatment based on pregnancy, childbirth, or related conditions.

The Genetic Information Nondiscrimination Act (GINA) prohibits the use of genetic information in making employment decisions, such as firing an employee due to a predisposition to a particular disease.

These laws are enforced by the Equal Employment Opportunity Commission (EEOC) and other federal agencies, which investigate complaints of discriminatory practices and ensure compliance with anti-discrimination legislation.

In addition to federal laws, state constitutions and statutes may provide further protection from employment discrimination, extending similar protections to employers not covered by federal laws and offering protection to additional groups.

Termination

Notice Requirements:

Employees who are terminated must be given adequate notice as stated in their contract or the statutory minimum notice period, whichever is longer. The statutory notice period is typically one week for employees with over one month of continuous service but less than two years, with an additional week added for each year of service up to a maximum of 12 weeks.

Valid Reasons for Dismissal:

Employers must have valid reasons for terminating an employee and must act reasonably under the circumstances. Common valid reasons include redundancy, capability or conduct issues, breach of a statutory restriction, or "some other substantial reason" (SOSR). Redundancy, for instance, must be a genuine reduction in the workforce and follow a fair selection process.

Unfair Dismissal:

Unfair dismissal occurs when an employer breaches the terms of an employee's contract, such as failing to provide proper notice or notice pay. Employees with less than two years of service cannot claim unfair dismissal unless the reason is considered automatically unfair, such as pregnancy or family-related reasons.

Wrongful Dismissal:

Wrongful dismissal differs from unfair dismissal in that it occurs when an employer breaches the terms of an employee's contract, regardless of their length of service. This could include failing to provide the employee with their contractual or statutory notice period.

Summary Dismissal:

In cases of gross misconduct, such as theft, fraud, violence, or serious insubordination, employers may lawfully dismiss an employee without notice or pay in lieu of notice. However, employers must still demonstrate a fair process and have clear evidence to support their decision.

Employers can fairly dismiss an employee due to a long-standing illness or prolonged absence if it affects their ability to do their job and no reasonable adjustments can be made. However, termination due to a long-term disability may be considered unlawful discrimination.

Final Pay and References:

When an employee leaves, their final pay may differ from their regular pay due to factors such as holiday entitlement. Employers may also need to provide job references, which should be honest and not misleading.

Legal Risks:

Employers must be mindful of legal risks when terminating employees to avoid claims of unfair dismissal or other legal repercussions. Following a fair process, providing valid reasons, and acting reasonably are crucial to mitigate these risks.

In summary, termination of employment is a complex process governed by various laws and regulations. Employers must ensure they understand their obligations to avoid legal issues and treat employees fairly during the termination process.

Family and medical leave

The Family and Medical Leave Act (FMLA) is a federal law in the US that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year. This law is designed to help employees balance their work and family responsibilities by allowing them to take reasonable unpaid leave for certain family and medical reasons. It also seeks to accommodate the legitimate interests of employers and promote equal employment opportunities for men and women.

The FMLA applies to all public agencies, public and private elementary and secondary schools, and companies with 50 or more employees. These employers must provide an eligible employee with up to 12 weeks of unpaid leave each year for any of the following reasons:

• The birth and care of the newborn child of an employee
• Placement with the employee of a child for adoption or foster care
• To care for an immediate family member (spouse, child, or parent) with a serious health condition
• To take medical leave when the employee is unable to work due to a serious health condition

Employees are eligible for leave if they have worked for their employer for at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles. Time taken off work due to pregnancy complications can be counted against the 12 weeks of family and medical leave.

Military family leave provisions were first added to the FMLA in 2008, providing FMLA protections specific to the needs of military families. Special rules apply to employees of local education agencies. The FMLA is administered by the US Department of Labor; however, the Office of Personnel Management administers FMLA for most federal employees.

Frequently asked questions