Key Takeaways

  • Human resource laws cover hiring, wages, workplace safety, benefits, discrimination, and employee rights.
  • Compliance includes adhering to federal and state regulations like FLSA, OSHA, ADA, FMLA, and more.
  • Employers must maintain accurate documentation and stay updated with evolving laws.
  • HR compliance involves not just legal mandates but also internal policies and ethical practices.
  • Employee handbooks, clear communication, and regular training are vital for avoiding legal issues.

What Are Human Resources Laws?

Human resources laws refer to state and federal laws in the United States that govern human resource management and employment issues. Compensation, recruitment, development, and placement are all considered aspects of human resource management.

Common Areas Covered by Human Resource Laws

Human resource laws govern a wide array of employment matters. These laws ensure fair and ethical treatment of employees while protecting employer rights. Key areas covered include:

  • Hiring and Termination: Laws prohibit discriminatory practices and mandate lawful procedures for hiring, discipline, and termination.
  • Wages and Hours: The FLSA regulates minimum wage, overtime pay, and recordkeeping.
  • Workplace Safety: OSHA sets safety and health standards to prevent work-related injuries.
  • Discrimination: Federal laws like Title VII, ADA, and ADEA prevent discrimination based on race, gender, disability, age, and other protected classes.
  • Leave and Benefits: The FMLA and ACA govern medical leave and access to health insurance.
  • Privacy and Employee Records: Employers must safeguard employee data and comply with recordkeeping requirements.
  • Retaliation Protections: Laws prohibit employers from retaliating against employees for asserting their legal rights.

What Are Human Resources?

Human resources refer to the individuals who make up the workforce of an entire organization. The term is also applied to business sectors or even entire countries when it comes to labor economics. Human resources also refer to a function within organizations. The purpose of this function is to implement policies and strategies when it comes to the management of individuals. Human resources are a title that is often abbreviated to the acronym "HR."

Human Resources Laws

Title VII of the Civil Rights Act of 1964 is one example of a human resource law in the United States. The Equal Employment Opportunity Commission administers Title VII. This law is applicable to all employers who have at least 15 employees. This law prohibits employers from discriminating against individuals on the basis of

The Department of Labor Wage & Hour Division administers the Fair Labor Standard Act (FLSA). This law establishes the federal minimum wage as $7.25. It also establishes standards for overtime pay and child labor. According to this law, overtime pay is 1.5 times the regular hourly rate. This law also classifies employees as either exempt or non-exempt. The Fair Labor Standard Act also establishes what work time employers need to pay, such as

  • on-call
  • waiting
  • travel time
  • rest periods
  • training/meetings

The Department of Labor administers the Family and Medical Leave Act. This act grants employees who have worked a minimum of 1,250 hours in the past year to take a job-protected and unpaid leave for family and medical reasons. This act is only applicable to employees who work at a company that employs at least 50 employees within 75 miles. During a family or medical leave, the employee is still entitled to receive continued group health insurance coverage. The terms and conditions must remain the same as before for the employee.

Four different federal agencies enforce and administer the Americans with Disabilities Act. The EEOC enforces regulations when it comes to private employment. The ADA's Title I prohibits local governments, state governments, labor unions, employment agencies, and private employers from discriminating against individuals with disabilities who are qualified during hiring, job application procedures, advancement, firing, job training, compensation, and other privileges, terms, and conditions of employment. The ADA is only applicable to employers who employ at least 15 employees. The employer also needs to make reasonable accommodations for the disabled person so long as it would not cause undue hardship for the business's operations.

The Equal Employment Opportunity Commission administers the Age Discrimination in Employment Act. The ADEA prohibits employers from discriminating against individuals aged 40 or older in wages, hiring, promotions, layoffs, benefits, terminations, and other terms or conditions when it comes to employment. The ADEA law does not prohibit employers from discriminating against individual's younger than 40.

The Department of Labor administers the Occupational Safety and Health Act. The OSHA is the main federal law that governs occupational safety and health in the workplace. The OSHA ensures that employers provide a healthy and safe work environment for their employees. The environment needs to be free of excessive noise levels, exposure to toxic chemicals, mechanical dangers, unsanitary conditions, and heat or cold stress.

The Patient Protection and Affordable Care Act, or "Obamacare," is responsible for expanding health care coverage via private and public insurance. It also broadens Medicare coverage and Medicaid eligibility. This act establishes exchanges for health insurance. Finally, this act establishes other standards for health care. This law also establishes an employer and individual mandate that requires all employees to buy health care coverage and all employers who have at least 50 employees to offer them health insurance. Employers who don't offer health insurance to their employees must pay a penalty.

Ohio's Workers' Compensation Act provides employees with accommodation if they get injured on the job. Employers are required to give money to a common fund for state insurance. The fund compensates all workers who are injured while working. Employers do not have to worry about full liability if an employee gets injured while working.

Title VII under the Civil Rights Act is overseen by the Equal Employment Opportunity Commission and applies to employers who have at least 15 employees. Title VII prohibits employers from discriminating against people on the basis of color, race, religion, sex, and national origin.

The Equal Employment Opportunity Commission also administers the Equal Pay Act (EPA). The EPA prohibits employers from partaking in wage discrimination between men and women based on sex. This is applicable when men and women do the same jobs that require equal skill, at the same establishment, and under comparable working conditions.

The Pregnancy Discrimination Act is also overseen by the Equal employment Opportunity Commission and prohibits employers from discriminating against employees who are pregnant or suffering from pregnancy-related conditions. Women who are pregnant or suffer from pregnancy-related conditions need to be treated in the same way as other employees or applicants who have the same limitations or comparable abilities. The only exception is elective abortions. The PDA applies to employers with at least 15 employees.

Even if the FMLA does not cover a business, female employees have the right to take a leave for a time that is reasonable for childbirth and pregnancy under Ohio's law. Also, the Commission forces employers to reinstate employees to their original place or a position with similar status and pay without loss of benefits like service credits.

The National Labor Relations Board administers the National Labor Relations Act. The NLRA defines the rights of both employers and employees. Some examples of such rights include the right to engage in concerted activities like strikes and grievances or the right to collectively bargain for mutual aid and protection.

Key Compliance Responsibilities for Employers

HR compliance requires that employers consistently follow labor laws and internal policies. Failure to do so can result in costly penalties, lawsuits, or reputational damage. Important employer responsibilities include:

  • Policy Development: Create clear policies and employee handbooks outlining legal rights and expectations.
  • Recordkeeping: Maintain accurate records for payroll, tax filings, work hours, and personnel files.
  • Postings and Notices: Display federal and state labor law posters in the workplace.
  • Training and Communication: Regularly train HR staff and management on legal updates and compliance practices.
  • Conducting Internal Audits: Periodically review HR procedures to identify and correct compliance gaps.
  • Accommodating Disabilities: Provide reasonable accommodations under the ADA.
  • Harassment Investigations: Have clear procedures in place for reporting and resolving workplace harassment claims.

Federal vs. State Employment Law Differences

Employers must understand that human resource laws exist at both the federal and state levels, and state laws may impose stricter standards. Key differences include:

  • Minimum Wage: Some states set their minimum wage higher than the federal rate.
  • Leave Policies: While FMLA mandates unpaid leave, states like California and New York offer paid family leave.
  • Non-Compete and At-Will Employment: State rules vary significantly regarding employment termination and restrictive covenants.
  • Anti-Discrimination Laws: Some states expand protections to include sexual orientation, gender identity, or marital status.

Employers must comply with the law that provides the most protection to employees when state and federal requirements differ.

Penalties for Noncompliance with Human Resource Laws

Failing to comply with human resource laws can lead to serious legal and financial consequences, including:

  • Fines and Penalties: Regulatory bodies such as the Department of Labor and EEOC may impose significant fines for violations.
  • Lawsuits: Noncompliance with wage, discrimination, or safety laws can expose employers to lawsuits.
  • Back Wages and Damages: Employers may be required to compensate employees for lost wages, benefits, or emotional distress.
  • Reputational Damage: Public lawsuits or enforcement actions can damage a company’s brand and hinder recruitment efforts.

Proactive compliance efforts are essential to avoiding legal pitfalls and maintaining a productive workplace.

Best Practices to Stay Compliant with HR Laws

To manage compliance efficiently, HR departments should adopt the following best practices:

  1. Stay Informed: Subscribe to updates from agencies like the Department of Labor and EEOC.
  2. Use HR Software: Implement systems that help track hours, manage benefits, and store employee documentation securely.
  3. Create an Audit Trail: Document all HR decisions, including performance issues, promotions, or accommodations.
  4. Hire Legal Counsel: Consult attorneys for complex compliance concerns or internal investigations.
  5. Update Policies Frequently: Revise employee handbooks and company policies regularly to reflect changes in law.

Employers can find experienced attorneys through UpCounsel’s marketplace to assist with drafting policies, responding to legal claims, and navigating complex employment law matters.

Frequently Asked Questions

  1. What are the main federal human resource laws employers must follow?
    Key federal laws include FLSA, OSHA, ADA, Title VII, ADEA, FMLA, EPA, and the ACA. These regulate wages, safety, discrimination, leave, and benefits.
  2. How do state human resource laws differ from federal laws?
    State laws may offer broader protections, such as higher minimum wages or additional anti-discrimination categories. Employers must comply with the more protective standard.
  3. What are examples of HR compliance failures?
    Common failures include misclassifying employees, not paying overtime, failing to accommodate disabilities, or lacking documentation during a harassment investigation.
  4. How often should HR policies be updated?
    HR policies should be reviewed annually and updated whenever there are changes in employment laws or company procedures.
  5. Can small businesses be held liable under human resource laws?
    Yes. While some laws apply only to businesses with a minimum number of employees, many apply to small businesses, especially at the state level. Always confirm coverage based on size and location.

If you would like to learn more about human resources laws, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.