Abiding by Federal and state labor laws are part of running a business. This means understanding the most important laws and then working to deepen your knowledge.
What are Labor Laws and Why Are They Important?
Labor laws are state and federal regulations that are implemented to protect workers from exploitation. Unfortunately, the past (and sometimes the present) has seen exploitation, especially of vulnerable people. Labor laws also ensure that payroll taxes are paid to support social security for all workers.
Understanding the ten most important laws helps business owners understand more of what's going on in HR and helps employees know their rights.
10 of the Laws You Need to Know
Here are the ten most important labor laws you need to know.
- The Fair Labor Standards Act (FLSA). This was put into place because of abysmal conditions in factories in 1938. It sets a minimum wage all employees must receive, determines which employees need to receive overtime and when (40 hours per week), and limits child labor.
- The Family and Medical Leave Act. This requires that employers give eligible employees up to 12 weeks of unpaid leave a year, with continuation of health insurance and guarantee of an equivalent job upon return, in order to care for a newborn or newly placed child, care for an immediate family with a health condition, or recover from a health condition.
- The Occupational Safety and Health Act. OSHA standards apply to most employers and are designed to protect workers from injury (and businesses from downtime). OSHA rules change all the time, so you need to keep up to date with them.
- The Americans With Disabilities Act. The ADA covers discrimination in all areas, not just work, but it does require that you do not discriminate against disabled workers who can do the job and provide proper accommodations. You don't have to hire a visually impaired person as a driver, but you do have to let one bring their service dog into the office.
- Health Insurance Portability and Accountability Act. HIPPA mostly applies to healthcare organizations. As an employer, though, it protects your employees from release of medical records and prevents discrimination based on medical history.
- The Civil Rights Act. Also not directly about employment, but it bars discrimination based off of race, religion, or gender. There are some exemptions, but for the most part you have to be very careful about real or perceived discrimination.
- Equal Pay Act. This is an amendment to the FLSA that requires equal pay for equal work between men and women. The difficulty in enforcing it is a driving force behind laws such as the New York Pay Transparency Act, which requires employers with four or more employees to disclose the pay range in advertisements.
- Age Discrimination in Employment Act (ADEA). This specifically prohibits age discrimination against workers 40 or over. New York also has its own anti-discrimination laws to protect these older workers.
- Pregnancy Discrimination Act. This is an amendment to the Civil Rights Act that blocks discriminating against applicants and employees on the basis of pregnancy or conditions rising from pregnancy. In short, you cannot not hire somebody because they are pregnant and will be taking maternity leave, and you have to provide health insurance that covers pregnancy (but not medically unnecessary abortions).
- National Labor Relations Act (NLRA). This protects your employees. They have the right to talk about working conditions, including salary, without fear of retaliation. Yes, this does mean it's illegal to tell your employees they can't discuss their salary, which is perhaps the most common violation.
If you are confused by employment law, that's okay. You may need the help of an HR outsourcing expert. To get more answers to your questions and find out how we can help you, contact MegaPay today.