Can you think of one thing that protects workers, reduces organizational risk, boosts employee satisfaction, guides policy and even helps resolve conflicts.
Labor laws do all this and more. But these benefits only come to life when human resource (HR) professionals have deep and broad knowledge of employment laws, from EEO regulations to contracts and at-will hiring policies.
If your eyes are starting to glaze over a little, you're not alone! Getting into the details of employment law can bring up things like the medical leave act, the health act, occupational safety laws, workplace discrimination laws, the equal pay act and more.
There's a lot to understand. And if you work in human resources, understanding employment law can be a huge deal.
Organizations that overlook or violate these laws (whether intentionally or not) risk legal troubles, financial penalties and damage to their reputation.
For HR professionals, employment law isn’t just a responsibility. It’s a powerful opportunity to protect the organization while fostering a fair, safe and inclusive workplace.
Understanding and applying these laws is key to building a culture where individual contributors, teams, and the entire organization can meet and even exceed professional development and organizational goals from building a talent pipeline to increasing YOY revenue consistently.
1. Equal employment opportunity laws
Equal employment opportunity (EEO) laws, including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), the Pregnancy Discrimination Act,
and the Age Discrimination in Employment Act (ADEA), are essential to ensuring fair treatment in the workplace.
Title VII prohibits discrimination based on race, color, religion, sex or national origin, making it illegal to base employment decisions on these characteristics.
The ADA protects individuals with disabilities by requiring employers to provide reasonable accommodations, allowing qualified individuals equal access to employment opportunities.
The ADEA protects workers aged 40 and older from age-based discrimination, particularly in hiring, promotions and terminations.
The principles behind EEO laws are foundational to fostering an inclusive, diverse and equitable work environment. Fair treatment in hiring, promotions and terminations not only aligns with legal standards but also strengthens an organization’s culture, morale and reputation. Treating employees and candidates fairly promotes trust, reduces turnover and attracts a broader range of talent.
It is easy to think of these laws as concepts or words on a screen, but they impact the lives of people trying to do meaningful work, support families and have a good quality of life. Take a look at these two case examples to understand the two most common types of complaints filed with the Equal Employment Opportunity Commission, ADA and retaliation.
How this might impact an HR professional
Let's say an employee named Marie applied for an exclusive leadership training program at work and received a rejection email. She noted that of the 12 people accepted this year, not one has a disability.
As a person who uses a wheelchair, Marie knows that the ADA protects her from discrimination based on her disability. When she applied, she requested accommodations related to her wheelchair and service dog. The request was denied as her employer deemed the accommodations an undue hardship. Marie contacts the Equal Opportunity Employment Commission (EEOC) and files a complaint.
When the EEOC agent reaches out to Cynthia, the HR manager where Marie works, she calmly gathers the criteria for acceptance to the leadership program, a list of the accepted applicants for the past three years, and all of Marie’s performance reviews for the previous three years. She also adds a copy of the organization's statement about ADA compliance and commitment to inclusion.
Cynthia and Marie will be interviewed by a representative from the EEOC who is in a position to evaluate the situation, determine whether the law has been violated, and make recommendations for going forward. The ADA, enforced by the Equal Employment Opportunity Commission, provides a process for both the employee concerned about being discriminated against and the organization focused on defending its policies, procedures and practices.
Let's look at another example.
Paris is a manager of a busy chain coffee shop. He noticed that another manager, Leo, distributes money from the tip jar at the end of each shift and takes an equal portion of the tips for himself. Paris spoke to Leo and shared his concerns that management shouldn’t be taking tips that belong to the hourly baristas.
The manager defended sharing in the tips because he also makes coffee and helps customers when the café gets very busy or is short-staffed. He feels he earned an equal share of the tips.
Because Leo continued to keep part of the tips, Paris went to HR at corporate to voice his concerns. After speaking with HR, Paris was moved to another location much farther from his home. The café is known for having problems with high turnover and employee theft. Only one month into managing the troubled location, Paris receives an informal evaluation informing him that he isn’t meeting expectations to improve the café.
Certain that he was being punished for speaking up about his fellow manager Leo, Paris filed a complaint with the EEOC. The EEOC began investigating the claim, looking into whether Paris’s employer’s actions constituted retaliation, as prohibited under Title VII of the Civil Rights Act.
Violating EEO laws can lead to severe consequences, including costly lawsuits, government investigations, fines and damaged reputation. Employers found in violation may be required to compensate affected employees, implement corrective policies, or undergo EEO training.
Therefore, adhering to EEO laws is crucial for legal compliance, organizational integrity and a positive workplace culture.
2. Wage and hour laws
Laws around wages and work hours are enforced by the Fair Labor Standards Act and are meant to create and maintain basic labor standards. Minimum wage requirements, time and a half overtime pay, and the 40-hour work week all exist because of the Fair Labor Standards Act.
How this might impact an HR professional
Because of the FLSA, someone who delivers pizzas for $3.00 an hour plus tips, must be paid at least the minimum wage when unloading a supply truck for the pizza parlor as there is no opportunity to earn at least minimum wage via tips while carrying boxes off of a truck.
Because of the FLSA, a retail sales clerk who does inventory on Sunday after working 40 hours Monday through Friday will be paid 1.5 times their regular hourly wage, so $22.00 an hour instead of $15.00 an hour from hour 41 on.
An essential distinction between employees is their exempt or non-exempt status. Exempt employees typically do not qualify for overtime pay as they are paid an annual salary, while non-exempt employees are not part of management, are paid by the hour, and do qualify for overtime pay.
3. Employee rights and privacy laws
Workplace surveillance, data handling and employee confidentiality are protected by the Electronic Communications Privacy Act and other data protection laws (including Health Insurance Portability and Accountability Act for medical and healthcare professionals and the Gramm-Leach-Bliley Act for the financial industry).
While an organization may have a legitimate need to monitor employees or facilities, this need has to be balanced against the employee’s expectation of privacy and right to consent to being monitored. These laws require employers to be transparent about data collection and protection policies as well as monitoring practices.
How this might impact an HR professional
If an employer records conversations in the employee breakroom without disclosing the cameras to employees, they have violated the employees’ expectations of privacy under the Electronic Communications Privacy Act.
If an employer collects and reads all employee emails sent from work email addresses despite having no written policy around using company emails for personal communication, the employer has also violated the Electronic Communications Privacy Act.
It is easy to understand that employers might find these laws restrictive in the face of a need for data and surveillance when trying to build proprietary processes or protect intellectual property, but HR professionals have a responsibility to keep leaders informed of the laws and help them achieve organizational goals while respecting employees’ rights as this fosters trusts, mitigates legal risk and creates a workplace culture that is ethical and legally compliant.
4. Hiring and onboarding laws
Building a successful workforce requires effective recruiting, hiring and onboarding practices. These come with significant legal responsibilities and opportunities for HR professionals to play a role in a crucial area of organizational development.
Human resource professionals should know and understand the laws and regulations around hiring and onboarding so they can avoid discriminatory practices in job descriptions and interviews. Well-written employment contracts as well as a deep understanding of at-will employment are needed to set clear expectations for the leadership, management, and employees.
The onboarding process can predict employee success or failure. HR professionals should ensure the onboarding process includes accurate documentation and communication of company policies which lays the groundwork for a strong, legally sound employment relationship.
How this might impact an HR professional
Recruiters and other human resources professionals should write job descriptions that focus on necessary skills, qualifications and job functions while avoiding (and training others to avoid) loaded language that covertly or overtly implies bias based on race, gender, age or disability as these are protected classes.
Let's say Bob is the hiring manager for a large team in operations. He has written a job ad and submitted it to Deirdre in HR. Deidre is concerned when she sees phrases like “new grads” “fresh professionals” and “youthful mindset” in the ad. All of these suggest age discrimination in the hiring process and that Bob is not open to hiring an older worker who meets the requirements of the job.
Deirdre schedules a discussion with Bob about the ad and about other ways that his bias against older applicants might be showing up in the workplace. She makes it clear that this is a violation of the Age Discrimination in Employment Act. Not only is she offering Bob important professional development, but she is also protecting the organization from an EEOC investigation and protecting applicants and employees from discrimination that harms their careers by denying opportunities.
Later the same day, Deirdre receives an email from a member of the research and development team. The employee is concerned that the same people are being asked to take random drug tests while other members of the team have never been selected.
The chosen team members are all young, male and Black. Deirdre checks the manager’s documentation of drug tests performed routinely and those performed randomly. She also confirms the demographic information about the R&D team members chosen at random.
She meets with the manager about the legal requirement to conduct drug testing consistently and to avoid all treatment of employees based on race, gender and age.
5. Employment contract law
Job responsibilities, total compensation, confidentiality expectations, performance management processes and termination procedures are essential elements of an employment contract.
HR professionals have an opportunity to protect the employer and the employee by putting all of these in a document that can be referred to before there is an issue and when an issue arises. This makes it easier to avoid conflicts around expectations and to resolve those that cannot be avoided.
Submitting the Form I-9 to verify an applicant’s eligibility to work and the W-4 for withholding taxes are mandated by federal law. The federal government also requires that employers store and retain copies of the documents for set periods of time.
Providing a hardcopy and/or digital access to the employee handbook is one part of being legally compliant as this document informs employees of their rights and responsibilities as well as the organization's policies and procedures required by law.
An effective onboarding process should include reference to the anti-discrimination and harassment policies as well as the requirement that new hires sign a document acknowledging their awareness of the policies, consequences for violations and their responsibility to contribute to a safe and inclusive workplace that makes every effort to comply with local, state and federal laws.
How this might impact an HR professional
When Sarah, a new HR generalist at a global ecommerce company, was asked to revise the employee handbook for the first time in a few years, she was overwhelmed. But, knowing that this document presented a chance to set clear expectations, create and support a company culture of respect, and prevent illegal behaviors in the workplace, she was excited to play a role.
Employment law is complex for a reason
Navigating labor laws as a human resources professional is essential for maintaining legal compliance which protects the organization, and for fostering a workplace that thrives on fairness, trust and respect—which workers deserve.
When HR professionals understand employment law, they can protect organizations from costly lawsuits, promote positive inclusive organizational culture, and support the organizations short and long-term success.
This is why courses in Rasmussen's Human Resources and Organizational Leadership Bachelor’s Degree program cover employment law with real-life scenarios students evaluate.
If you find employment law for HR professionals interesting, you might be the exact kind of person who can protect employee rights and guide an organization. A solid foundation of employment law can benefit you in many different functional areas of human resources.
Check out What Can You Do With a Human Resources Degree? to see how.
