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Employment Law Basics

Employment Law Basics

Employment law governs the relationship between employers and employees. It encompasses hiring, working conditions, compensation, and termination.

At-Will Employment

Most U.S. employment is at-will, meaning either the employer or the employee can end the relationship at any time, for any reason (or no reason), with or without notice. However, there are important exceptions:

  • Termination cannot violate anti-discrimination laws
  • Termination cannot be retaliatory (e.g., firing someone for filing a workers' compensation claim)
  • An employment contract may limit at-will termination
  • Some states recognize an implied covenant of good faith and fair dealing
  • Anti-Discrimination Laws

    Federal laws prohibit workplace discrimination based on:

  • Race, color, religion, sex, and national origin — Title VII of the Civil Rights Act of 1964
  • Age (40 and older) — Age Discrimination in Employment Act (ADEA)
  • Disability — Americans with Disabilities Act (ADA)
  • Genetic information — Genetic Information Nondiscrimination Act (GINA)
  • Pregnancy — Pregnancy Discrimination Act
  • Wage and Hour Protections

    The Fair Labor Standards Act (FLSA) establishes:

  • A federal minimum wage
  • Overtime pay (1.5 times the regular rate for hours worked over 40 per week)
  • Restrictions on child labor
  • Rules for classifying workers as exempt or non-exempt
  • Workplace Safety

    The Occupational Safety and Health Act (OSHA) requires employers to maintain a workplace free from recognized hazards. Employees can file complaints and cannot be retaliated against for reporting safety violations.

    Employee Benefits

    Key laws governing benefits include:

  • FMLA — up to 12 weeks of unpaid, job-protected leave for qualifying reasons
  • COBRA — allows employees to continue health insurance after leaving a job
  • ERISA — regulates employer-provided pension and health plans
  • Quiz: Employment Law Basics

    Question 1 of 3

    What does at-will employment mean?