Employment Law 101: Do You Know Your Rights?

Whether you’re an employer or an employee, knowing your rights and how you’re protected is incredibly important.

From ensuring employees are paid a fair wage to employers knowing how to instill a safe working environment, it’s all part of employment law. 

The goal of employment laws is to protect the rights of both the company and its employees. It also ensures all employees are treated equally, giving everyone a feeling of security. Since so many different state and federal laws go into this practice, understanding each helps employers and employees be sure of their rights.

Employers often use harassment prevention training software to monitor legal updates as existing laws change and new laws are created within the employment law space. These tools help deliver standard learning content to prevent a hostile work environment.

Why is employment law important?

Companies of all shapes and sizes must understand employment law and employee rights. Typically, it’s up to the human resources (HR) and legal teams to put together materials that form an employee handbook. The handbook outlines how to treat all parties fairly and ethically. Some companies also have employment lawyers on staff who work as in-house counsel.

When both the employer and the employees understand their rights and obligations, they feel supported and better prepared in certain situations, like sexual harassment or salary misclassification. Employment law can also have a hand in dispute resolution between employees and management and in laying ground rules for safe working conditions.

“Part of what the legal team does is keep up with the latest updates and changes to labor and employment laws. We analyze the updates, assess how they apply, and implement the updates internally.”

Eunice Buhler
General Counsel, G2

Employment law vs. labor law

It’s common to confuse employment law with labor law and vice versa, but the two have key differences.

Employment law refers to the legal issues that happen between an employer and their employees. It regulates this relationship while maintaining workplace compliance with these laws. It covers hiring practices, overtime pay, hours, and wages.

Labor law refers to issues involving union membership, union dues, and collective bargaining agreements. It’s a subset of employment law focused on the interactions between employers, workers, and labor unions.

Types of employment law

Employment law is made up of regulations for all levels of government. Because it’s so extensive with a wide range of subject matters, it’s broken down into different areas of focus.

Employee discrimination

Discrimination at work happens when an individual within a protected class experiences different treatment than their coworkers or peers. Many kinds of discrimination can occur, and they’re all prohibited by law, ranging from state laws to decisions passed by the Supreme Court. 

The following are a few terms and acts associated with employment law concerning employee discrimination.

• Title VII of the Civil Rights Act: Passed in 1964, this prohibits employee discrimination based on religion, color, sexual orientation, race, or national origin.
• The Pregnancy Discrimination Act: Passed in 1978 as an amendment to Title VII, this act prohibits employers from discriminating due to pregnancy or any pregnancy or childbirth-related conditions.
• The Equal Pay Act: Passed in 1963, this law protects employees from wage and benefit discrimination based on gender.
• The Age Discrimination in Employment Act: Passed in 1967, this federal law prevents employers from discriminating against others based on age. The Act generally covers individuals at least 40 years of age.
• Americans with Disabilities Act (ADA): Passed in 1990, this law prohibits discrimination based on disabilities. Employers are required to provide reasonable accommodations for disabled employees.
• Genetic Information Nondiscrimination Act (GINA): Passed in 2008, this protects individuals against discrimination based on their genetic information in health coverage and employment.
• Family and Medical Leave Act (FMLA): Passed in 1993, FMLA provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave. It applies to all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees. For example, an employee could take FMLA for the birth and care of a newborn.

Wages and benefits

Several employment laws cover compensation and benefits. In addition to ensuring employers pay their employees either an hourly wage or an annual salary, many companies also offer health and dental insurance, retirement plans, and paid time off. These are usually regulated by the National Labor Relations Board (NLRB).

The following are a few terms and acts associated with employment law concerning wages and employee benefits.

• Minimum wage is the lowest amount an employer can pay its employees. The amount varies depending on the city or state where a company is based. For example, the minimum wage in Illinois is $13 per hour, while in California, it is $15.50.
• At-Will Employment is a professional relationship without an employment contract agreement. Both the employer and the employee may end the relationship at any time, for any reason, without incurring a penalty.
• The Fair Labor Standards Act (FLSA), passed in 1938, sets the standard minimum hourly wages, establishes overtime pay, and defines what can be considered work.
• Overtime compensation is the amount that the government requires an employer to pay an employee who has worked over 40 hours a week. Typically, this rate is a higher pay rate than their regular rate.
• The Consolidated Omnibus Budget Reconciliation Act (COBRA), passed in 1985, allows employees and their family members to continue to access their group health benefits, at the same rate, even after leaving their job.
• The Employee Retirement Income Security Act (ERISA), passed in 1974, establishes how companies can administer healthcare benefits and pension plans to employees. 
• Stock options, which give employees a percentage of ownership in the company, are sometimes available for employees to purchase. 
• Tuition reimbursement is an option at some companies, meaning they pay all or part of an employee’s tuition for further education or training as it pertains to their role.
• Collective bargaining comprises the Clayton Act of 1914, the National Labor Relations Act of 1935, and the Labor Management Reporting and Disclosure Act of 1959, which gives employees the right to organize as unions. If more than 50% of employers want to organize, a company must negotiate in good faith.

Health and safety

Employees have the right to feel safe at work and do their job free of hazards. With employment law, the government can hold employers responsible for certain workers’ compensation and medical costs if an employee is injured on the job.

The following are a few terms and acts associated with employment law concerning health and safety regulations.

• Occupational Safety and Health Act: Passed in 1970, this Act minimizes dangers and hazards in the workplace by establishing specific standards, including provisions that are unique to certain industries, like construction and healthcare.
• Occupational Safety and Health Administration (OSHA): OSHA is an agency responsible for creating and enforcing health and workplace safety standards.
• Emergency Action Plan (EAP): A written document required by specific OSHA standards, this plan establishes an outline of what to do in certain emergencies, typically due to the risk involved on work sites. An example of this is a protocol for reporting a fire and evacuation.
• Occupational disease: This is any illness or condition associated with a particular occupation or industry. Carpal tunnel and hearing loss are both common examples.
• Environmental hazards: OSHA describes these as hazards, risks, or threats associated with a workplace environment or duty. If left uncorrected, these hazards may cause injury or illness for employees or customers. Toxic waste or chemical spills are examples of hazards that can be found in certain work environments.

Common causes of action in employment law

Employees and those interviewing for jobs have certain rights and protection under employment law. While many are covered by federal laws, some states have implemented workplace laws for added protection against the most common causes of action. 

The most common employee instances that result in violations of the Equal Employment Opportunity Commission (EEOC) employment law are:

• Discrimination. Current and prospective employees cannot be discriminated against for specific characteristics like gender, age, and nationality. 
• Wrongful termination. Employers may not fire an employee out of retaliation for a legal complaint for protected factors, such as gender, pregnancy, or race. 
• Sexual harassment. A form of gender discrimination, this type of harassment occurs when inappropriate sexual behavior occurs within the workplace, such as unwanted remarks or physical contact.
• Wage and hour disputes. Employers are legally obligated to pay at least the minimum wage, provide overtime when hours are over 40 a week, and abide by other wage and hour laws within the state.

It's good to have law and order!

Knowing the ins and outs of employment law is recommended for both employers and employees. From wages to workplace safety, knowing your rights and how you’re protected is always a smart choice.

Learn more about harassment prevention training, which states have mandated training and the benefits of training employees. 

Disclaimer: This article is for information purposes only and isn’t meant to give legal advice. Always consult with an attorney for more information about a legal issue you may be experiencing.

This article was originally published in 2023. It has been updated with new information. robust