10/ 15/ 2004
by Beth Gaudio
There is a wide range of federal labor and employment laws that might affect your business and your relationship with your employees. Below is a brief summary of the most significant federal labor and employment laws for which employers are most frequently named in lawsuits. It is important to note that these laws all have state and even local counterparts, which may apply to more employers or broaden categories of discrimination. For instance, many states and municipalities have enacted protections against discrimination and harassment based on sexual orientation, marital status and political affiliation.
Title VII of the Civil Rights Act of 1964
Who it applies to:
- Businesses with 15 or more employees
What it says:
- Prohibits employment discrimination on the basis of race, color, religion, sex (including pregnancy) or national origin
- Also prohibits sexual harassment in the workplace
Civil Rights Act of 1866 (42 U.S.C. § 1981)
Who it applies to:
- All employers
What it says:
- Prohibits discrimination on the basis of race in the making contracts, including entering into or terminating employment relationships. Section 1981 has broader coverage than Title VII and applies to any employment relationship, regardless of the size of the employer.
Fair Labor Standards Act
Who it applies to:
- All full- and part-time employees of any business with 2 or more employees
What it says:
- Minimum Wage Requirements
- Currently $5.15 per hour, with exceptions for employees under 20 years old and for certain employees certified by the Department of Labor Wage-Hour Office
- Overtime pay
- Must be at least 1 1/2 times an employee’s regular rate of pay
- Required after 40 hours of work in a workweek
- Child labor standards
- An employee must be at least 16 years old to work in most non-farm jobs, or 18 years old if the Secretary of Labor declares the job hazardous
- Youths 14 and 15 years old may work with limited hours and conditions
- An employer must keep extensive payroll records
Age Discrimination in Employment Act
Who it applies to:
- Businesses with 20 or more employees
What it says:
- Prohibits discrimination against individuals over the age of 40 in all aspects of employment (hiring, firing, assignments, etc.)
- Employers should retain all payroll records for at least three years after an employee’s termination, and records regarding any employee benefit plan or merit system for at least one year after an employee’s termination
Americans With Disabilities Act
Who it applies to:
- Businesses with 15 or more employees
What it says:
- Prohibits discrimination against qualified individuals with disabilities
- Requires that an employer make reasonable accommodations in certain circumstances for a disabled employee who is otherwise qualified for the job
- The ADA has requirements for existing facilities built before 1993 that are less strict than for ones built after early 1993 or modified after early 1992
Immigration Reform and Control Act
Who it applies to:
- All employers
What it says:
- Requires employers to verify identity and work eligibility of all new hires (I-9 Form)
Family and Medical Leave Act of 1993
Who it applies to:
- Businesses with 50 or more employees
What it says:
- Requires employers to provide up to 12 weeks of unpaid, job-protected leave for employees who have worked a year or more
- Upon return employee should be returned to their original or equivalent position
- Leave may not result in loss of employment benefits accrued before leave and employer must maintain health coverage for employee during leave
Uniformed Services Employment and Reemployment Rights Act
Who it applies to:
- All employers
What it says:
- Prohibits discrimination against employees who volunteer or are called for military duty
- Requires re-employment rights for individuals called up for active military duty
NFIB provides this Web site for informational purposes only and it is not intended to provide legal services or legal assistance for individual cases. You should consult a lawyer to discuss your individual situation.
This article was contributed by the NFIB Legal Foundation, a 501 (c)(3) public interest law firm created to protect the rights of America's small-business owners by providing advisory material on legal issues and by ensuring that the voice of small business is heard in the nation's courts. The National Federation of Independent Business (NFIB) represents the consensus views of its 600,000 members in Washington and all 50 state capitals. More information is available at www.NFIB.com/legal.
