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Federal employment regulations in the U.S. are numerous, and include anti-discrimination laws, as well as laws governing employee rights, hiring processes, leave, wages, working conditions, and many more. On top of that, some individual states also have their own laws in place that can supersede the federal minimums regarding minimum wage, paid family leave, etc.
In this article, we’ll provide a broad overview of federal government labor laws in the U.S. — and note which employee benefit businesses hiring remote workers in the U.S. can provide in order to attract the best possible talent.
The Department of Labor (DOL) maintains over 180 federal employment laws and regulations in order to ensure U.S. employees’ rights to fair, safe, and healthy working conditions.
Here is a summary of the categories the DOL oversees and the major laws meant to govern them:
Although we’ll touch on several of these categories and laws in more depth, the information in this article is meant to provide a high-level overview. For a full rundown of U.S. labor laws, please refer to the DOL website. Also, a few of these laws may not be as relevant for remote workers.
The FLSA applies to most employees in the private sector as well as those in certain federal, state, and local agencies. Key stipulations include:
Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act combine to ensure all employees have equal opportunities in the workplace. Here is an overview of key protections against discriminatory practices.
Federal law prohibits employers from discriminating against job applicants or employees based on any aspect of race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability, or genetic information.
This means it's illegal for employers to:
Employers cannot base disciplinary actions or terminations on an employee's protected characteristics.
For example, if one male and one female employee each regularly miss the same meetings, their employer cannot determine disciplinary measures based on their gender or sex. Rather, they should be held equally accountable.
Similarly, during layoffs, employers cannot target older employees solely based on age. Decisions regarding layoffs should be based on job-related factors like performance or seniority. For example, layoffs that only included workers over age 40 could be considered wrongful termination.
Federal law requires employers to provide eligible employees with what’s referred to as “reasonable accommodations” — e.g., those that don't create undo difficulty or expense for the business.
This ensures everyone has a fair shot at success, regardless of factors like:
Harassment can be verbal, physical, or visual. Examples include:
It's illegal when:
Simple jokes or isolated incidents are not illegal (though of course, they may be in bad taste). The key, here, is that repeated or severe behavior that interferes with work or creates a hostile environment is unacceptable.
It’s important to remember that anyone can commit workplace harassment. This includes supervisors, coworkers, clients, customers, or even individuals not employed by your company.
Most jobs in the U.S. are "at-will," meaning both employers and employees can choose to end the working relationship without contractual stipulations.
Still, some professionals and highly skilled talent may have formal employment contracts covering the employment relationship, including non-compete agreements. These contracts typically outline:
Regardless of whether an employee has a contract, the same rules and regulations outlined in federal law apply.
Unlike many other countries, the U.S. has no federal law that mandates paid time off, sick leave, or vacation days. Depending on the size of the company, employers may be required to offer eligible employees unpaid job-protected leave through the FMLA.
State variations:
Some states, however, offer a safety net. Thirteen states and Washington, D.C. have paid family and medical leave programs, while some (like Massachusetts and Hawaii) provide paid benefits for maternity leave.
Employer-driven benefits:
While not required, many employers offer paid vacation, sick leave, and increasingly, parental leave benefits to attract and retain talent.
Likewise, as the U.S. lacks a national health system, employer-sponsored health insurance is a common benefit.
The regulatory landscape for U.S. employers is complex, with a mix of federal and state laws that continue to evolve.
Emerging trends, like California's "Right to Disconnect" bill, and potential regulations around remote work similar to those in Spain, highlight the dynamic nature of how federal law governs employee rights, and the challenges of navigating employment law.
Employers found to be non-compliant with U.S. labor laws could receive fines and penalties and even face legal action. In order to mitigate those risks companies could employ an expert in U.S. labor laws, seek legal advice, or partner with an Employer of Record, like Remofirst.
We assume the responsibility for all formal human resource employment tasks on behalf of your company to ensure that your business remains compliant with federal and state laws. We can handle everything from payroll, to ensuring that any independent contractors you hire do not put you at risk of worker misclassification. Remofirst can also manage benefits for your U.S.-based employees, including health insurance coverage.
Book a demo today to learn more.
