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| Meta Title | What Is Employment Law? (Definition, 5 Key Laws) | Built In |
| Meta Description | Employment law is a section of laws that protect employees and their employers through workplace regulations. Explore key employment laws and common reasons for legal action. |
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| Boilerpipe Text | Summary:
Employment law is a section of laws that govern key aspects of the employee-employer relationship, covering wages, safety, discrimination and leave. It ensures fair treatment, sets workplace standards and enables legal recourse for violations like wrongful termination or harassment.
Employment law governs many critical aspects of the employee-employer relationship. It is designed to protect employees and their employers through regulations that guarantee workplace safety, protect against child labor, ensure a fair and equitable
hiring process
, and address
family and medical leave.
Employment law also regulates the hours an employee can work and sets wages.Â
It is important that employees and employers understand the basic elements of employment law in order to avoid legal action. For example, if an employee makes false statements that harm an employer’s business or reputation, they may face a lawsuit — even if their statement doesn’t cause any monetary loss.
Related
What Are Compensation and Benefits?
HR Basics: Employment Law. | Video: GreggU
Why Is Employment Law Important?
If an employer breaks an employment law, they may fall under investigation or incur penalties including extensive fines. Examples of employer misconduct include failing to pay mandatory overtime, denying paid leave, wrongful termination or asking
prohibited questions
on job applications. Employment law is structured so that both employer and employee are treated fairly, which in turn keeps a business running properly. These regulations ensure that businesses can focus on productivity instead of directing resources to resolving disputes.
For example, employers have the right to terminate an employee if they are not properly performing their duties. They also have the right to terminate an employee if the company can no longer afford to keep them on staff, or for more obvious reasons such as theft or defamation. Employment laws ensure that employees fulfill their contract with their employer, thereby protecting employers from bad faith actors.
Harassment in the Workplace
There are limits to the protections offered by employment laws. For example, harassment is illegal, but “petty teasing” is not. According to the
U.S. Equal Employment Opportunity Commission (EEOC)
, harassment is unwelcome conduct that is based on race, color, religion, sex, national origin, older age, disability or genetic information. Harassment becomes unlawful when enduring the offensive conduct becomes a condition of continued employment, or the conduct is severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile or abusive.Â
Petty teasing doesn’t qualify as unlawful, unless it creates a work environment that is intimidating, hostile or offensive. This is consistent with federal harassment case law, which hinges on “severe or pervasive” conduct.Â
Offensive conduct
may include, but is not limited to, offensive jokes, slurs, epithets or name calling, physical assaults or threats, intimidation, ridicule or mockery, insults or put-downs, offensive objects or pictures and interference with work performance.
Who Is Exempt From Employment Laws?
Employment law also doesn’t protect all businesses equally. For example, some small businesses may be exempt from certain requirements, and managers may not have all the same wage protections as hourly workers. Additionally,
most states
offer “at-will” employment, which means an employer can terminate your employment for any reason as long as it’s not unlawful.Â
While employment laws don’t fully protect against all manner of workplace abuse, they do protect against many areas that were historically difficult to regulate. The Fair Labor Standards Act of 1938 restricts the hours that children under age 16 are allowed to work, placing limits on child labor. However, children 12 and younger can still legally work on farms in accordance with FLSA agricultural exemptions (and depending on individual state regulations), despite risks from heavy machinery and heat-related illnesses from sun exposure.
Free Employer Brand Reputation Report
See how your employer brand is performing in AI tools like ChatGPT and Google.
What Are the Main Characteristics of Employment Law?
Employment law is a continually evolving branch of law, shaped significantly in the 20th century. It allows employees to understand their rights and is often divided into areas such as wages and benefits, health and safety and employment discrimination. Other key areas include family and medical leave, labor relations, unemployment compensation, employee contracts, immigration, the
hiring process
, pensions, social security and wrongful termination. The
U.S. Department of Labor
administers and enforces most federal employment laws.
Related
How to Handle Layoff Announcements
What Are the Key U.S. Employment Laws?
The U.S. Department of Labor oversees an extensive range of employment laws, but there are other agencies that monitor the workplace as well. The
U.S. Equal Employment Opportunity Commission (EEOC)
enforces many of the laws protecting workers from discrimination, working with
Fair Employment Practices Agencies (FEPAs)
to manage charges of employment discrimination at the state and local levels.Â
Additionally, the
National Labor Relations Board (NLRB)
oversees the law that controls the relationship between unions and their members. Finally, the U.S. Department of Justice administers the
Americans with Disabilities Act
, which protects people with disabilities in many areas of life, including the workplace.
Here’s an overview of key U.S. employment laws.Â
The Fair Labor Standards Act (FLSA)
The
Fair Labor Standards Act (FLSA)
of 1938 prescribes standards for wages and overtime pay, which affect most private and public employment. The FLSA requires employers to pay employees who are not otherwise exempt at least the federal minimum wage and overtime pay of 1.5 times the regular rate of pay (an exempt employees typically meet specific salary and duty criteria and are not entitled to overtime pay under the FLSA). The FLSA also restricts the hours that children under age 16 are allowed to work and prohibits the employment of children under age 18 in jobs considered too dangerous.
Occupational Safety and Health Act (OSH)
The
OSH
Act of 1970
is administered by the Occupational Safety and Health Administration (OSHA). Covered employers must comply with OSHA’s regulations as well as their health and safety standards. Under the OSH Act, employers must also provide employees with a workplace free from recognized, serious hazards, which include everything from workplace violence to hazardous material spills. OSHA enforces the law through workplace inspections and investigations.
While the U.S. Department of Labor oversees federal employee compensation, it has no oversight of
state workers’ compensation programs
. State government or private company employees should contact the workers’ compensation program from their state for more information.
Family and Medical Leave Act (FMLA)
One of the most well-known and often-used labor laws is the
Family and Medical Leave Act (FMLA)
of 1993, which requires employers to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the birth or adoption of a child or for the serious illness of the employee or the employee’s spouse, child or parent.
Employee Retirement Income Security Act (ERISA)
The
Employee Retirement Income Security Act of 1974 (ERISA)
regulates employers who offer pension or welfare benefit plans for their employees. Certain employers and plan administrators must fund an insurance system to protect specific retirement benefits and pay premiums to the federal government.
The federal government also has labor laws governing:
Construction
and
transportation
industries
Mine safety
Migrant and seasonal agricultural workers
Manufacturing plant closings and layoffs
Recipients of government contracts, grants or financial aid
VeteransÂ
Wage garnishment
Unions and union members
A more obscure law is the
Employee Polygraph Protection Act
, which prohibits most employers from using lie detectors on employees but permits polygraph tests in specific circumstances.
Related
What Is Employee Relations?
Common Causes of Action in Employment Law
Employees can take legal action against their employer as individuals or as a union. While it’s more difficult, employers can also sue their employees. It’s important for both parties to be proactive and know their rights and responsibilities to avoid running afoul of the law.Â
When Can Employees Sue Their Employers?
Inconsistent discipline/discrimination
: Employers must ensure they’re applying disciplinary measures uniformly across employees. If an employee gets away with something for which their coworker was fired, the terminated employee could claim discrimination and pursue legal action. Â
Workplace harassment
: This is a type of discrimination that violates federal or state anti-discrimination laws. Harassment can prompt legal action if a workplace becomes hostile, abusive or intimidating.
Wrongful termination
: Firing an employee for illegal reasons or in a way that breaches a contract constitutes wrongful termination. Examples include an employer making an employee’s work so difficult that they quit on their own, an employee getting fired due to discrimination or an employee reporting an employer for illegal activity and getting fired (retaliation).
Wage law violations
: Employers can face legal action for denial of overtime pay, errors in the calculation of hours and overtime, and misclassifying employees as independent contractors.
When Can Employers Sue Their Employees?
Negligence:
If an employee causes injury to another person or property, the employer may be able to sue.
Defamation:
If an employee knowingly makes false statements that harm the employer’s business or reputation, the employer may pursue legal action. Even if the statement doesn’t cause any monetary loss, if it is harmful to the employer’s reputation they may face a lawsuit.
Violating a non-compete clause:
Many employment contracts prevent an employee from working in a specific field within a set geographic area for a certain time post-employment.
Certain states
no longer enforce non-compete clauses, but many still uphold the agreements if they find that they were reasonable and made in good faith.
Employment law is the section of laws that govern the relationship between employers and employees, addressing areas like wages, workplace safety, discrimination, family leave and wrongful termination.
Employment law is important because it protects both employees and employers by ensuring fair treatment, preventing discrimination, setting wage standards and providing a framework for resolving disputes.
Notable U.S. employment laws include:
Fair Labor Standards Act (FLSA)
Family and Medical Leave Act (FMLA)
Occupational Safety and Health Act (OSH)
Americans with Disabilities Act (ADA)
Employee Retirement Income Security Act (ERISA) |
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- \+4
# What Is Employment Law?
Employment law is a branch of law that governs the relationship aspects between employees and employers. Explore key employment laws and the most common reasons employees and employers take legal action.
Written by [Megan McNamara](https://builtin.com/authors/megan-mcnamara)
Image: Shutterstock / Built In
UPDATED BY
[Brennan Whitfield](https://builtin.com/authors/brennan-whitfield) \| Jun 03, 2025
Summary: Employment law is a section of laws that govern key aspects of the employee-employer relationship, covering wages, safety, discrimination and leave. It ensures fair treatment, sets workplace standards and enables legal recourse for violations like wrongful termination or harassment. [more](https://builtin.com/company-culture/employment-law) Employment law is a section of laws that govern key aspects of the employee-employer relationship, covering wages, safety, discrimination and leave. It ensures fair treatment, sets workplace standards and enables legal recourse for violations like wrongful termination or harassment.
Employment law governs many critical aspects of the employee-employer relationship. It is designed to protect employees and their employers through regulations that guarantee workplace safety, protect against child labor, ensure a fair and equitable [hiring process](https://builtin.com/articles/hiring-process), and address [family and medical leave.](https://builtin.com/articles/effective-parental-leave-plans) Employment law also regulates the hours an employee can work and sets wages.
It is important that employees and employers understand the basic elements of employment law in order to avoid legal action. For example, if an employee makes false statements that harm an employer’s business or reputation, they may face a lawsuit — even if their statement doesn’t cause any monetary loss.
## 5 Critical Employment Laws to Know
- [Family and Medical Leave Act (FMLA)](https://www.dol.gov/agencies/whd/fmla)
- [The Americans With Disabilities Act (ADA)](https://www.ada.gov/)
- [The Fair Labor Standards Act (FLSA)](https://www.dol.gov/agencies/whd/flsa)
- [Occupational Safety and Health Act (OSH)](https://www.osha.gov/laws-regs/oshact/completeoshact)
- [Employee Retirement Income Security Act (ERISA)](https://www.dol.gov/general/topic/retirement/erisa)
Related[What Are Compensation and Benefits?](https://builtin.com/people-management/compensation-and-benefits)
HR Basics: Employment Law. \| Video: GreggU
## Why Is Employment Law Important?
If an employer breaks an employment law, they may fall under investigation or incur penalties including extensive fines. Examples of employer misconduct include failing to pay mandatory overtime, denying paid leave, wrongful termination or asking [prohibited questions](https://www.eeoc.gov/employers/small-business/what-shouldnt-i-ask-when-hiring) on job applications. Employment law is structured so that both employer and employee are treated fairly, which in turn keeps a business running properly. These regulations ensure that businesses can focus on productivity instead of directing resources to resolving disputes.
For example, employers have the right to terminate an employee if they are not properly performing their duties. They also have the right to terminate an employee if the company can no longer afford to keep them on staff, or for more obvious reasons such as theft or defamation. Employment laws ensure that employees fulfill their contract with their employer, thereby protecting employers from bad faith actors.
### Harassment in the Workplace
There are limits to the protections offered by employment laws. For example, harassment is illegal, but “petty teasing” is not. According to the [U.S. Equal Employment Opportunity Commission (EEOC)](https://www.eeoc.gov/harassment), harassment is unwelcome conduct that is based on race, color, religion, sex, national origin, older age, disability or genetic information. Harassment becomes unlawful when enduring the offensive conduct becomes a condition of continued employment, or the conduct is severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile or abusive.
Petty teasing doesn’t qualify as unlawful, unless it creates a work environment that is intimidating, hostile or offensive. This is consistent with federal harassment case law, which hinges on “severe or pervasive” conduct. [Offensive conduct](https://www.eeoc.gov/harassment) may include, but is not limited to, offensive jokes, slurs, epithets or name calling, physical assaults or threats, intimidation, ridicule or mockery, insults or put-downs, offensive objects or pictures and interference with work performance.
### Who Is Exempt From Employment Laws?
Employment law also doesn’t protect all businesses equally. For example, some small businesses may be exempt from certain requirements, and managers may not have all the same wage protections as hourly workers. Additionally, [most states](https://www.paycor.com/resource-center/articles/employment-at-will-laws-by-state/) offer “at-will” employment, which means an employer can terminate your employment for any reason as long as it’s not unlawful.
While employment laws don’t fully protect against all manner of workplace abuse, they do protect against many areas that were historically difficult to regulate. The Fair Labor Standards Act of 1938 restricts the hours that children under age 16 are allowed to work, placing limits on child labor. However, children 12 and younger can still legally work on farms in accordance with FLSA agricultural exemptions (and depending on individual state regulations), despite risks from heavy machinery and heat-related illnesses from sun exposure.
Free Employer Brand Reputation Report
See how your employer brand is performing in AI tools like ChatGPT and Google.
[Get Your Free Report](https://employers.builtin.com/Reputationreport/?utm_source=Editorial&utm_medium=BIReferral)
## What Are the Main Characteristics of Employment Law?
Employment law is a continually evolving branch of law, shaped significantly in the 20th century. It allows employees to understand their rights and is often divided into areas such as wages and benefits, health and safety and employment discrimination. Other key areas include family and medical leave, labor relations, unemployment compensation, employee contracts, immigration, the [hiring process](https://builtin.com/articles/neurodiversity-employment), pensions, social security and wrongful termination. The [U.S. Department of Labor](https://www.dol.gov/) administers and enforces most federal employment laws.
Related[How to Handle Layoff Announcements](https://builtin.com/company-culture/how-to-handle-layoff-announcements)
## What Are the Key U.S. Employment Laws?
The U.S. Department of Labor oversees an extensive range of employment laws, but there are other agencies that monitor the workplace as well. The [U.S. Equal Employment Opportunity Commission (EEOC)](https://www.eeoc.gov/) enforces many of the laws protecting workers from discrimination, working with [Fair Employment Practices Agencies (FEPAs)](https://www.eeoc.gov/fair-employment-practices-agencies-fepas-and-dual-filing) to manage charges of employment discrimination at the state and local levels.
Additionally, the [National Labor Relations Board (NLRB)](https://www.nlrb.gov/) oversees the law that controls the relationship between unions and their members. Finally, the U.S. Department of Justice administers the [Americans with Disabilities Act](https://www.ada.gov/), which protects people with disabilities in many areas of life, including the workplace.
Here’s an overview of key U.S. employment laws.
### The Fair Labor Standards Act (FLSA)
The [Fair Labor Standards Act (FLSA)](https://www.dol.gov/agencies/whd/flsa) of 1938 prescribes standards for wages and overtime pay, which affect most private and public employment. The FLSA requires employers to pay employees who are not otherwise exempt at least the federal minimum wage and overtime pay of 1.5 times the regular rate of pay (an exempt employees typically meet specific salary and duty criteria and are not entitled to overtime pay under the FLSA). The FLSA also restricts the hours that children under age 16 are allowed to work and prohibits the employment of children under age 18 in jobs considered too dangerous.
### Occupational Safety and Health Act (OSH)
The [OSH](https://www.osha.gov/laws-regs/oshact/completeoshact)Act of 1970is administered by the Occupational Safety and Health Administration (OSHA). Covered employers must comply with OSHA’s regulations as well as their health and safety standards. Under the OSH Act, employers must also provide employees with a workplace free from recognized, serious hazards, which include everything from workplace violence to hazardous material spills. OSHA enforces the law through workplace inspections and investigations.
While the U.S. Department of Labor oversees federal employee compensation, it has no oversight of [state workers’ compensation programs](https://www.dol.gov/agencies/owcp/wc). State government or private company employees should contact the workers’ compensation program from their state for more information.
### Family and Medical Leave Act (FMLA)
One of the most well-known and often-used labor laws is the [Family and Medical Leave Act (FMLA)](https://www.dol.gov/agencies/whd/fmla) of 1993, which requires employers to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the birth or adoption of a child or for the serious illness of the employee or the employee’s spouse, child or parent.
### Employee Retirement Income Security Act (ERISA)
The [Employee Retirement Income Security Act of 1974 (ERISA)](https://www.dol.gov/general/topic/health-plans/erisa) regulates employers who offer pension or welfare benefit plans for their employees. Certain employers and plan administrators must fund an insurance system to protect specific retirement benefits and pay premiums to the federal government.
The federal government also has labor laws governing:
- [Construction](https://www.dol.gov/general/aboutdol/majorlaws#construction) and [transportation](https://www.dol.gov/general/aboutdol/majorlaws#transportation) industries
- [Mine safety](https://www.dol.gov/general/aboutdol/majorlaws#mining)
- [Migrant and seasonal agricultural workers](https://www.dol.gov/general/aboutdol/majorlaws#migrant)
- [Manufacturing plant closings and layoffs](https://www.dol.gov/general/aboutdol/majorlaws#plantclosings)
- [Recipients of government contracts, grants or financial aid](https://www.dol.gov/general/aboutdol/majorlaws#govtcontracts)
- [Veterans](https://www.dol.gov/general/aboutdol/majorlaws#veterans)
- [Wage garnishment](https://www.dol.gov/general/aboutdol/majorlaws#garnishment)
- [Unions and union members](https://www.dol.gov/general/aboutdol/majorlaws#unions)
A more obscure law is the [Employee Polygraph Protection Act](https://www.dol.gov/agencies/whd/polygraph), which prohibits most employers from using lie detectors on employees but permits polygraph tests in specific circumstances.
Related[What Is Employee Relations?](https://builtin.com/people-management/employee-relations)
## Common Causes of Action in Employment Law
Employees can take legal action against their employer as individuals or as a union. While it’s more difficult, employers can also sue their employees. It’s important for both parties to be proactive and know their rights and responsibilities to avoid running afoul of the law.
### When Can Employees Sue Their Employers?
- **Inconsistent discipline/discrimination**: Employers must ensure they’re applying disciplinary measures uniformly across employees. If an employee gets away with something for which their coworker was fired, the terminated employee could claim discrimination and pursue legal action.
- **Workplace harassment**: This is a type of discrimination that violates federal or state anti-discrimination laws. Harassment can prompt legal action if a workplace becomes hostile, abusive or intimidating.
- **Wrongful termination**: Firing an employee for illegal reasons or in a way that breaches a contract constitutes wrongful termination. Examples include an employer making an employee’s work so difficult that they quit on their own, an employee getting fired due to discrimination or an employee reporting an employer for illegal activity and getting fired (retaliation).
- **Wage law violations**: Employers can face legal action for denial of overtime pay, errors in the calculation of hours and overtime, and misclassifying employees as independent contractors.
[](https://employers.builtin.com/Reputationreport/?utm_source=Editorial&utm_medium=BIReferral)
### When Can Employers Sue Their Employees?
- **Negligence:** If an employee causes injury to another person or property, the employer may be able to sue.
- **Defamation:** If an employee knowingly makes false statements that harm the employer’s business or reputation, the employer may pursue legal action. Even if the statement doesn’t cause any monetary loss, if it is harmful to the employer’s reputation they may face a lawsuit.
- **Violating a non-compete clause:** Many employment contracts prevent an employee from working in a specific field within a set geographic area for a certain time post-employment. [Certain states](https://www.natlawreview.com/article/state-law-restrictive-covenants-update) no longer enforce non-compete clauses, but many still uphold the agreements if they find that they were reasonable and made in good faith.
## Frequently Asked Questions
### What is employment law?
Employment law is the section of laws that govern the relationship between employers and employees, addressing areas like wages, workplace safety, discrimination, family leave and wrongful termination.
### Why is employment law important?
Employment law is important because it protects both employees and employers by ensuring fair treatment, preventing discrimination, setting wage standards and providing a framework for resolving disputes.
### What are some key U.S. employment laws?
Notable U.S. employment laws include:
- Fair Labor Standards Act (FLSA)
- Family and Medical Leave Act (FMLA)
- Occupational Safety and Health Act (OSH)
- Americans with Disabilities Act (ADA)
- Employee Retirement Income Security Act (ERISA)
### Recent Company Culture Articles
[ Company Culture Videos: Learn From 28 of the Best Examples Out There](https://builtin.com/company-culture/great-company-culture-videos)
[ 32 Companies That Pay for College](https://builtin.com/company-culture/companies-that-pay-for-college)
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| Readable Markdown | Summary: Employment law is a section of laws that govern key aspects of the employee-employer relationship, covering wages, safety, discrimination and leave. It ensures fair treatment, sets workplace standards and enables legal recourse for violations like wrongful termination or harassment.
Employment law governs many critical aspects of the employee-employer relationship. It is designed to protect employees and their employers through regulations that guarantee workplace safety, protect against child labor, ensure a fair and equitable [hiring process](https://builtin.com/articles/hiring-process), and address [family and medical leave.](https://builtin.com/articles/effective-parental-leave-plans) Employment law also regulates the hours an employee can work and sets wages.
It is important that employees and employers understand the basic elements of employment law in order to avoid legal action. For example, if an employee makes false statements that harm an employer’s business or reputation, they may face a lawsuit — even if their statement doesn’t cause any monetary loss.
Related[What Are Compensation and Benefits?](https://builtin.com/people-management/compensation-and-benefits)
HR Basics: Employment Law. \| Video: GreggU
## Why Is Employment Law Important?
If an employer breaks an employment law, they may fall under investigation or incur penalties including extensive fines. Examples of employer misconduct include failing to pay mandatory overtime, denying paid leave, wrongful termination or asking [prohibited questions](https://www.eeoc.gov/employers/small-business/what-shouldnt-i-ask-when-hiring) on job applications. Employment law is structured so that both employer and employee are treated fairly, which in turn keeps a business running properly. These regulations ensure that businesses can focus on productivity instead of directing resources to resolving disputes.
For example, employers have the right to terminate an employee if they are not properly performing their duties. They also have the right to terminate an employee if the company can no longer afford to keep them on staff, or for more obvious reasons such as theft or defamation. Employment laws ensure that employees fulfill their contract with their employer, thereby protecting employers from bad faith actors.
### Harassment in the Workplace
There are limits to the protections offered by employment laws. For example, harassment is illegal, but “petty teasing” is not. According to the [U.S. Equal Employment Opportunity Commission (EEOC)](https://www.eeoc.gov/harassment), harassment is unwelcome conduct that is based on race, color, religion, sex, national origin, older age, disability or genetic information. Harassment becomes unlawful when enduring the offensive conduct becomes a condition of continued employment, or the conduct is severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile or abusive.
Petty teasing doesn’t qualify as unlawful, unless it creates a work environment that is intimidating, hostile or offensive. This is consistent with federal harassment case law, which hinges on “severe or pervasive” conduct. [Offensive conduct](https://www.eeoc.gov/harassment) may include, but is not limited to, offensive jokes, slurs, epithets or name calling, physical assaults or threats, intimidation, ridicule or mockery, insults or put-downs, offensive objects or pictures and interference with work performance.
### Who Is Exempt From Employment Laws?
Employment law also doesn’t protect all businesses equally. For example, some small businesses may be exempt from certain requirements, and managers may not have all the same wage protections as hourly workers. Additionally, [most states](https://www.paycor.com/resource-center/articles/employment-at-will-laws-by-state/) offer “at-will” employment, which means an employer can terminate your employment for any reason as long as it’s not unlawful.
While employment laws don’t fully protect against all manner of workplace abuse, they do protect against many areas that were historically difficult to regulate. The Fair Labor Standards Act of 1938 restricts the hours that children under age 16 are allowed to work, placing limits on child labor. However, children 12 and younger can still legally work on farms in accordance with FLSA agricultural exemptions (and depending on individual state regulations), despite risks from heavy machinery and heat-related illnesses from sun exposure.
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## What Are the Main Characteristics of Employment Law?
Employment law is a continually evolving branch of law, shaped significantly in the 20th century. It allows employees to understand their rights and is often divided into areas such as wages and benefits, health and safety and employment discrimination. Other key areas include family and medical leave, labor relations, unemployment compensation, employee contracts, immigration, the [hiring process](https://builtin.com/articles/neurodiversity-employment), pensions, social security and wrongful termination. The [U.S. Department of Labor](https://www.dol.gov/) administers and enforces most federal employment laws.
Related[How to Handle Layoff Announcements](https://builtin.com/company-culture/how-to-handle-layoff-announcements)
## What Are the Key U.S. Employment Laws?
The U.S. Department of Labor oversees an extensive range of employment laws, but there are other agencies that monitor the workplace as well. The [U.S. Equal Employment Opportunity Commission (EEOC)](https://www.eeoc.gov/) enforces many of the laws protecting workers from discrimination, working with [Fair Employment Practices Agencies (FEPAs)](https://www.eeoc.gov/fair-employment-practices-agencies-fepas-and-dual-filing) to manage charges of employment discrimination at the state and local levels.
Additionally, the [National Labor Relations Board (NLRB)](https://www.nlrb.gov/) oversees the law that controls the relationship between unions and their members. Finally, the U.S. Department of Justice administers the [Americans with Disabilities Act](https://www.ada.gov/), which protects people with disabilities in many areas of life, including the workplace.
Here’s an overview of key U.S. employment laws.
### The Fair Labor Standards Act (FLSA)
The [Fair Labor Standards Act (FLSA)](https://www.dol.gov/agencies/whd/flsa) of 1938 prescribes standards for wages and overtime pay, which affect most private and public employment. The FLSA requires employers to pay employees who are not otherwise exempt at least the federal minimum wage and overtime pay of 1.5 times the regular rate of pay (an exempt employees typically meet specific salary and duty criteria and are not entitled to overtime pay under the FLSA). The FLSA also restricts the hours that children under age 16 are allowed to work and prohibits the employment of children under age 18 in jobs considered too dangerous.
### Occupational Safety and Health Act (OSH)
The [OSH](https://www.osha.gov/laws-regs/oshact/completeoshact)Act of 1970is administered by the Occupational Safety and Health Administration (OSHA). Covered employers must comply with OSHA’s regulations as well as their health and safety standards. Under the OSH Act, employers must also provide employees with a workplace free from recognized, serious hazards, which include everything from workplace violence to hazardous material spills. OSHA enforces the law through workplace inspections and investigations.
While the U.S. Department of Labor oversees federal employee compensation, it has no oversight of [state workers’ compensation programs](https://www.dol.gov/agencies/owcp/wc). State government or private company employees should contact the workers’ compensation program from their state for more information.
### Family and Medical Leave Act (FMLA)
One of the most well-known and often-used labor laws is the [Family and Medical Leave Act (FMLA)](https://www.dol.gov/agencies/whd/fmla) of 1993, which requires employers to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the birth or adoption of a child or for the serious illness of the employee or the employee’s spouse, child or parent.
### Employee Retirement Income Security Act (ERISA)
The [Employee Retirement Income Security Act of 1974 (ERISA)](https://www.dol.gov/general/topic/health-plans/erisa) regulates employers who offer pension or welfare benefit plans for their employees. Certain employers and plan administrators must fund an insurance system to protect specific retirement benefits and pay premiums to the federal government.
The federal government also has labor laws governing:
- [Construction](https://www.dol.gov/general/aboutdol/majorlaws#construction) and [transportation](https://www.dol.gov/general/aboutdol/majorlaws#transportation) industries
- [Mine safety](https://www.dol.gov/general/aboutdol/majorlaws#mining)
- [Migrant and seasonal agricultural workers](https://www.dol.gov/general/aboutdol/majorlaws#migrant)
- [Manufacturing plant closings and layoffs](https://www.dol.gov/general/aboutdol/majorlaws#plantclosings)
- [Recipients of government contracts, grants or financial aid](https://www.dol.gov/general/aboutdol/majorlaws#govtcontracts)
- [Veterans](https://www.dol.gov/general/aboutdol/majorlaws#veterans)
- [Wage garnishment](https://www.dol.gov/general/aboutdol/majorlaws#garnishment)
- [Unions and union members](https://www.dol.gov/general/aboutdol/majorlaws#unions)
A more obscure law is the [Employee Polygraph Protection Act](https://www.dol.gov/agencies/whd/polygraph), which prohibits most employers from using lie detectors on employees but permits polygraph tests in specific circumstances.
Related[What Is Employee Relations?](https://builtin.com/people-management/employee-relations)
## Common Causes of Action in Employment Law
Employees can take legal action against their employer as individuals or as a union. While it’s more difficult, employers can also sue their employees. It’s important for both parties to be proactive and know their rights and responsibilities to avoid running afoul of the law.
### When Can Employees Sue Their Employers?
- **Inconsistent discipline/discrimination**: Employers must ensure they’re applying disciplinary measures uniformly across employees. If an employee gets away with something for which their coworker was fired, the terminated employee could claim discrimination and pursue legal action.
- **Workplace harassment**: This is a type of discrimination that violates federal or state anti-discrimination laws. Harassment can prompt legal action if a workplace becomes hostile, abusive or intimidating.
- **Wrongful termination**: Firing an employee for illegal reasons or in a way that breaches a contract constitutes wrongful termination. Examples include an employer making an employee’s work so difficult that they quit on their own, an employee getting fired due to discrimination or an employee reporting an employer for illegal activity and getting fired (retaliation).
- **Wage law violations**: Employers can face legal action for denial of overtime pay, errors in the calculation of hours and overtime, and misclassifying employees as independent contractors.
[](https://employers.builtin.com/Reputationreport/?utm_source=Editorial&utm_medium=BIReferral)
### When Can Employers Sue Their Employees?
- **Negligence:** If an employee causes injury to another person or property, the employer may be able to sue.
- **Defamation:** If an employee knowingly makes false statements that harm the employer’s business or reputation, the employer may pursue legal action. Even if the statement doesn’t cause any monetary loss, if it is harmful to the employer’s reputation they may face a lawsuit.
- **Violating a non-compete clause:** Many employment contracts prevent an employee from working in a specific field within a set geographic area for a certain time post-employment. [Certain states](https://www.natlawreview.com/article/state-law-restrictive-covenants-update) no longer enforce non-compete clauses, but many still uphold the agreements if they find that they were reasonable and made in good faith.
Employment law is the section of laws that govern the relationship between employers and employees, addressing areas like wages, workplace safety, discrimination, family leave and wrongful termination.
Employment law is important because it protects both employees and employers by ensuring fair treatment, preventing discrimination, setting wage standards and providing a framework for resolving disputes.
Notable U.S. employment laws include:
- Fair Labor Standards Act (FLSA)
- Family and Medical Leave Act (FMLA)
- Occupational Safety and Health Act (OSH)
- Americans with Disabilities Act (ADA)
- Employee Retirement Income Security Act (ERISA) |
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