Laws That Apply | Wednesday January 28th, 2004 | |
My business is growing and I’m hiring employees, which laws apply?
As a business grows and more employees are hired, the scope of responsibility increases as more regulations and laws come into play, but having even one employee requires knowledge and diligence in seeking the answers to the compliance questions. Many times business owners don’t have the time or inclination to search out the appropriate agency and regulations, or to complete the paperwork necessary to be in compliance. Here is a listing of the basic federal laws and regulations and the employee level necessary for compliance by employers in most general industries.
Employment regulations are complicated. There are state and federal requirements governing aspects of every business and there are other regulations specific to each industry and profession. Many states have a clearinghouse for employment-related information. Recently the U.S. Department of Labor established a website called “E-Laws Advisors” for easier research into federal labor regulations. The site’s URL is
www.dol.gov/elaws.
Here is a listing of the basic federal laws and regulations and the employee level necessary for compliance by employers in most general industries. Certain specific industries have additional regulations. This is a listing only of federal laws. Many states have additional or more restrictive laws governing employment. Generally, when state and federal laws conflict, the law that is most favorable to the employee, and more restrictive to the employer must be followed. It is essential that employers be aware of both federal and state employment laws.
ONE OR MORE EMPLOYEES:
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| Federal and State Payroll Withholding Regulations |
| IRS Withholding |
| FICA (Social Security Withholding) |
| Medicare Withholding |
| Garnishments and Wage Liens |
| Child Support Withholding |
|
| Federal and State Wage and Hour Laws |
Fair Labor Standards Act (FLSA)
--Specifies wages, hours and working conditions
--Specifies record keeping requirements
--Regulates employment of minors |
Equal Pay Act of l963
--Requires equal pay for equal work
--Prohibits discrimination in pay based on employee’s sex
|
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| National Labor Relations Act (NLRA) |
| Gives employees the right to organize, join unions, and engage in collective bargaining |
| Protects against unfair labor practices |
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| Employee Retirement Income Security Act of 1974 (ERISA) |
| Regulates pension and retirement plans |
| Regulates welfare benefits plans (health and life insurance) |
|
| Health Insurance Portability and Accountability Act of 1996 (HIPAA) |
| Covers any employer that offers health coverage to employees |
| Requires disclosure notices and certificates of coverage when employee’s coverage ends |
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| Immigration Reform and Control Act of 1986 |
Requires employers to verify identity and employment eligibility for people
hired after November 6, 1986 (Form I-9) |
| Requires workplace poster |
|
| Occupational Safety and Health Act of 1970 (OSHA) |
Federal law that may be enforced by state law whose regulations equal
or exceed federal requirements |
| Requires workplace free of hazards that may cause death or serious physical harm |
| Requires workplace poster |
|
| Employee Polygraph Protection Act of 1988 |
| Generally prohibits use of polygraph and lie detectors by employers |
| Requires workplace poster |
|
| Rehabilitation Act of 1973 |
| Covers employers with federal government contracts of $2,500 or more or who receive federal financial assistance |
| Requires employers to reasonably accommodate disabled employees and job applicants (substantially similar to Americans with Disabilities Act [ADA]) |
|
| Uniformed Services Employment and Re-employment Rights Act of 1994 |
| Guarantees re-employment rights to employees after military service |
| Requires employeProhibits discrimination against employees for activities required by service in the military, state National Guard or uniformed civilian service |
|
| Consumer Credit Protection Act |
| Prohibits employers from discharging an employee because of one garnishment of wages |
|
| The Fair Credit Reporting Act |
| Requires employers who reject job applicants because of written credit report to give applicant notice and supply name and address of credit reporting agency issuing the report |
|
| Whistle Blower Laws |
| Protect employees from retaliation for reporting violations by employers of certain safety and/or environmental standards |
|
| Personal Responsibility and Work Opportunity Reconciliation Act of 1996 |
| Requires all employers to submit information about every new hire within 20 days of hire |
| Each state designates appropriate agency to receive the information |
|
| Omnibus Transportation Employee Testing Act |
| Requires employers in the transportation industry (FHWA, FRA, FTA, FAA, and RSPA) to implement alcohol and drug testing programs, maintain records related to testing, and provide drug and alcohol education to employees |
FOUR OR MORE EMPLOYEES
|
| Immigration Reform and Control Act of 1986 |
| Protects against discrimination based on national origin |
FIFTEEN OR MORE EMPLOYEES
|
| Title VII of the Civil Rights Act of 1964 |
| Requires equal employment opportunity |
| Protects against discrimination based on race, color, religion, sex and national origin |
| Protects against sexual harassment in the workplace |
| Requires workplace poster |
|
| Pregnancy Discrimination Act of 1978 |
| Defines pregnancy as a temporary disability and requires accommodation on the job |
| Guarantees right to return to same or similar job with same pay following the disability |
|
| Drug-Free Workplace Act of 1988 |
| Requires federal contractors with contracts of $100,000 or more to maintain a drug-free workplace and follow specific regulations involving drug-testing and employee notification |
| Requires random drug testing for federal workers holding sensitive jobs |
| Requires testing in certain employees regulated by the U.S. Department of Transportation |
|
| Americans with Disabilities Act of 1990 |
| Provides protection in employment for people who are physically or mentally disabled |
| Requires reasonable accommodation for those otherwise qualified to perform essential job functions |
| Requires workplace poster |
|
| Civil Rights Act of 1991 |
| Allows jury trials for employment discrimination cases |
| Sets limits on punitive damage awards |
| Establishes employer requirements for defense |
TWENTY OR MORE EMPLOYEES
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| Age Discrimination in Employment Act of 1967 (ADEA) |
| Protects against discrimination in employment for employees are at least 40 years of age |
|
| Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) |
Requires employers who provide certain benefit programs to offer continuation coverage to
former employees and their dependents. |
| Employer may bill cost to former employee along with administrative fee of up to 2% of the cost |
FIFTY OR MORE EMPLOYEES
|
| Family and Medical Leave Act (FMLA) |
| Allows employees with more than one year of service to be eligible for up to 12 weeks unpaid leave in a 12-months period after childbirth or adoption, to care for a seriously ill child, spouse or parent, or for the employee’s own serious illness. |
| Requires employers to continue to pay for benefit coverage for employees on FMLA leave |
| Guarantees return to work for same or similar job at same pay |
| Prohibits discrimination against anyone exercising these provisions |
| Enforced by the U.S. Equal Employment Opportunity Commission (EEOC) |
|
| Executive Order 11246 – Affirmative Action |
| Requires a written Affirmative Action Plan (AAP) for minorities and women by federal contractors with $50,000 or more in contracts and 50 or more employees; all federal funds depositories (i.e. banks); and all paying agents for U.S. Savings Bonds |
| Requires goals and timetables for elimination of underutilization of minorities and females in any job group. |
| NOTE: Federal contractors with contracts or subcontracts valued at $10,000 or more in 12 months, must have a written AAP for disabled and veterans |
ONE HUNDRED OR MORE EMPLOYEES
|
| Workers Adjustment and Retraining Notification Act of 1988 (WARN) |
| Requires employers to provide 60 days’ notice to employees of plant closing or mass layoffs (employment loss of 50 or more people, excluding part-time workers) |
| Requires notification of public officials in surrounding communities |
|
| Equal Employment Opportunity Commission Regulations (EEOC) |
| Requires employers of 100 or more and all federal government contractors and subcontractors who have both a contract of $50,000 or more and 50 or more employees, to file a Standard Form 100 report be September 30 of each year showing sex and ethnic breakdown of workforce statistics within EEO job categories |
| Additional detailed reports of distribution by compensation is required of some employers |
This information is only intended as a summary of federal laws and regulations applying to employers. It is not meant to be construed as legal advice. Many states enact laws to supplement or expand upon federal legislation and many enact laws particular to employers in that state only. In addition to the federal regulations, all employers should carefully research the laws applicable to the state in which the business is located.
The U.S. Department of Labor maintains a fairly comprehensive website with links to relevant laws and regulations. A publication entitled “Employment Law Guide: Laws, Regulations, and Technical Assistance” is available for download. Employers can access the site at
www.dol.gov/asp/programs/handbook/main2.htm.
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