Understanding and navigating employment laws can be daunting for managers. And yet, ensuring compliance is critically important to protect companies from unnecessary claims and expensive fines. Managers play an important role in mitigating risk for a company as they are often in the best position to identify compliance concerns.
There are four main components of employment law that are essential for all managers to understand to ensure a productive, equitable workplace for all employees.
Wage & Hour Law Compliance
All employers are subject to the Fair Labor Standards Act (FLSA) which is a federal law that establishes minimum wage, overtime pay, recordkeeping, exemption classifications and child labor standards. Most states have enacted additional wage & hour laws providing greater protections for employees such as meal and rest periods, stricter overtime laws and higher minimum wage.
The Equal Pay Act of 1963 (EPA) is an amendment to the FLSA which protects wage discrimination on the basis of sex. The Equal Pay Act requires that employees who hold the same or “substantially equal” position should be paid the same. However, there may be reasonable and appropriate reasons in which two employees are paid differently even though they hold the same or similar position. These reasons can include location, seniority, performance, credentials, quantity or quality of production, or any factor other than sex.
Paying employees correctly and equitably is imperative to avoiding wage claims, which is why understanding federal and state wage & hour regulations is vital for any company.
Want to learn more? Take our Complying with Wage & Hour Laws online course.
Discrimination and Harassment
The Title VII of the Civil Rights Act of 1964 sets a standard of equal employment opportunity at a federal level by prohibiting employers from discriminating or harassing someone based on race, color, religion, sex (including pregnancy, childbirth, sexual orientation, gender identity, gender nonconformity or transgender status), national origin, age, disability and genetic information (including family medical history).
This law also makes it unlawful for employers to take negative action or retaliate against a person because they:
- Complained about discrimination
- Filed a charge of discrimination, or
- Participated as a witness in a discrimination investigation or lawsuit
Not only should managers be aware of the anti-harassment laws that guide our country, but they should also know how to respond to employee complaints in a way that protects both the company and the employee alike.
Want to learn more? Take our Anti-Harassment Training for Managers online course.
Employee Medical Issues
Many managers are unsure how to navigate the needs of employees with medical conditions or disabilities. It can be difficult and intimidating to determine the best way to support these employees, and sometimes this leaves managers feeling stuck.
There are three important employment laws designed to support employees while providing guardrails and protections for employers alike.
The Americans with Disabilities Act (ADA) was enacted to provide comprehensive protections for individuals with qualified disabilities. This law requires that employers provide reasonable accommodations to employees with mental or physical disabilities. Through the good faith interactive process, employers and employees should work together find a mutually agreeable accommodation that does not cause an undue hardship on the employer.
The Pregnant Workers Fairness Act (PWFA) states that employers must provide a reasonable accommodation to qualified employees with known limitations related to pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer an undue hardship.
The Family and Medical Leave Act (FMLA) entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave for specific medical and family reasons. Employers are obligated to return the employee to the same or similar position at the end of the approved FMLA leave period. Additionally, employers are required to maintain company-provided health coverage under the same terms as if the employee had not taken leave. (Note: FMLA applies to employers with 50 or more employees.)
Want to learn more? Take our Navigating Employee Medical Issues online course.
Preparing for Lawful Terminations
Most states in the U.S. have at-will employment laws, which means employees can choose to leave their employer at any time and conversely employers can terminate employment at any time. However, at-will employment does not protect employers from claims such as discrimination or wrongful termination.
Regardless of how poor an employee’s performance or behavior may be, following a performance management process is necessary to prepare for a lawful termination and provide employers with a solid legal defense should the employee file a claim. Proper documentation and strict adherence to your company’s policies is imperative to ensuring your organization is well positioned to defend a claim and avoid costly fines and settlement fees.
Want to learn more? Take our Effective Performance Management + Lawful Terminations online course.
Invest In Your Development
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All our courses were designed with the time constraints of the busy leader in mind. Our courses range from 20-45 minutes in length. We want to empower you to learn at your own pace with our interactive, online instruction.
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