US Federal Employment Law

The United States federal employment law system establishes minimum standards that apply nationwide, with states and local jurisdictions able to provide greater protections but not reduce federal protections. Federal employment law is primarily enforced by the Department of Labor (DOL), Equal Employment Opportunity Commission (EEOC), and Occupational Safety and Health Administration (OSHA). This slice covers federal requirements; state and local laws often add additional obligations. For universal employment law concepts, see Employment Law Primer.

Fair Labor Standards Act (FLSA) - Wage and Hour

The FLSA establishes federal minimum wage, overtime, child labor, and record-keeping requirements. Most employees are covered, though some exemptions apply.

Federal minimum wage is $7.25 per hour (unchanged since 2009). States and localities can set higher minimums, and employers must pay the highest applicable rate. Tipped employees have a lower minimum wage ($2.13 per hour federal) with tips making up the difference to reach the full minimum wage. If tips don't reach the full minimum, employers must make up the difference.

Overtime requirements mandate premium pay (1.5x regular rate) for hours worked beyond 40 in a workweek. The workweek is any fixed 168-hour period (seven consecutive 24-hour periods) and doesn't need to align with calendar weeks. Regular rate includes all compensation (hourly wages, non-discretionary bonuses, commissions, shift differentials) divided by hours worked. Overtime is calculated per workweek, not per day—working 10 hours one day doesn't trigger overtime unless the workweek total exceeds 40 hours.

Exempt classifications exempt employees from overtime if they meet three tests: salary basis (fixed salary regardless of hours, with limited deductions), salary level (minimum salary threshold, $35,568 annually for 2024 for most exemptions), and duties (executive, administrative, professional, outside sales, or computer professional duties). The duties tests are specific—simply having a title like "manager" doesn't create exemption. Executive exemption requires managing a department or subdivision, directing work of at least two employees, and having hiring/firing authority. Administrative exemption requires office or non-manual work directly related to management or general business operations and exercise of discretion. Professional exemption requires advanced knowledge in a field of science or learning (typically requiring advanced degree) or work requiring invention, imagination, or talent. Outside sales exemption has no salary requirement but requires making sales away from employer's place of business. Computer professional exemption requires systems analysis, programming, or software engineering work and higher salary threshold ($107,432 annually for 2024).

Record-keeping requirements mandate employers maintain records of hours worked, wages paid, and other employment data for at least three years. Records must include employee name, address, date of birth (if under 19), occupation, time and day workweek begins, hours worked each day and week, basis of pay (hourly, salary, piece rate), regular hourly rate, total daily or weekly straight-time earnings, total overtime earnings, additions to or deductions from wages, total wages paid each pay period, and date of payment. Failure to maintain records creates presumption that employee's claimed hours are accurate.

Child labor restrictions prohibit employment of minors under 14 (with limited exceptions), restrict hours for 14-15 year olds (no more than 3 hours on school days, 8 hours on non-school days, 18 hours per week during school, 40 hours per week when school is out, and only between 7am and 7pm), and restrict hazardous occupations for minors under 18.

FLSA violations can result in back pay (unpaid minimum wage or overtime), liquidated damages (equal to back pay, unless employer shows good faith), attorney fees, and civil penalties. Willful violations can result in criminal penalties. The statute of limitations is generally two years, extended to three years for willful violations.

Family and Medical Leave Act (FMLA)

FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons, with continuation of health benefits.

Eligibility requirements include: working for covered employer (50+ employees within 75 miles), 12 months of service (need not be consecutive), and 1,250 hours worked in past 12 months. The 12 months of service can be with multiple employers if there's continuity of employment (mergers, acquisitions, successor employers).

Qualifying reasons include: birth and care of newborn (within 12 months), placement and care of adopted or foster child (within 12 months), care for employee's spouse, child, or parent with serious health condition, employee's own serious health condition making them unable to perform job functions, and qualifying exigency arising from family member's military service (covered active duty). Military caregiver leave provides up to 26 weeks per year to care for covered service member with serious injury or illness.

Serious health condition is defined as illness, injury, impairment, or physical or mental condition involving inpatient care, continuing treatment by healthcare provider, or chronic conditions requiring periodic treatment. Common examples include cancer, heart attacks, strokes, severe injuries, pregnancy complications, and mental health conditions requiring treatment.

Job protection means employees must be restored to same or equivalent position (same pay, benefits, working conditions, shift, location). Equivalent means substantially similar duties, not identical. Key employees (highest-paid 10% of workforce within 75 miles) can be denied restoration if it would cause substantial economic injury, but this is rare.

Health benefits continuation requires employers maintain health insurance coverage during leave at same level and cost as if employee were working. If employee doesn't return from leave (except for circumstances beyond their control), employer can recover premiums paid during leave.

Intermittent and reduced schedule leave is available when medically necessary (employee or family member's serious health condition). Employees can take leave in blocks (intermittent) or work reduced hours (reduced schedule). Employers can temporarily transfer employees to alternative positions that better accommodate intermittent leave.

Notice requirements include: employees must provide 30 days advance notice when leave is foreseeable, or as soon as practicable when not foreseeable. Employers must provide notice of FMLA rights (general notice, eligibility notice, rights and responsibilities notice, designation notice). Failure to provide proper notice can result in employer being unable to count leave as FMLA.

FMLA and other leave can run concurrently. FMLA leave runs simultaneously with workers' compensation, short-term disability, or other employer-provided leave. Employees aren't entitled to more total leave by stacking programs.

FMLA violations can result in lost wages, benefits, other monetary losses, and attorney fees. There's no private right of action for interference—employees must show actual denial of benefits. Retaliation claims require showing adverse action because of FMLA use.

Federal Anti-Discrimination Laws

Multiple federal laws prohibit employment discrimination based on protected characteristics.

Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), and national origin. Applies to employers with 15+ employees. Covers hiring, firing, compensation, terms and conditions, and harassment. Religious employers have limited exemptions for ministerial positions.

Age Discrimination in Employment Act (ADEA) prohibits discrimination against employees 40 and older. Applies to employers with 20+ employees. Allows age as bona fide occupational qualification in limited circumstances. Prohibits mandatory retirement ages (except for certain executives and tenured faculty).

Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities. Applies to employers with 15+ employees. Requires reasonable accommodation unless it creates undue hardship. Disability is defined as physical or mental impairment substantially limiting major life activity, record of such impairment, or being regarded as having such impairment. Major life activities include walking, seeing, hearing, speaking, breathing, learning, working, and major bodily functions. Reasonable accommodation can include modified work schedules, job restructuring, reassignment to vacant position, modified equipment, interpreters, or other adjustments. Undue hardship means significant difficulty or expense considering employer size, resources, and nature of operation.

Genetic Information Nondiscrimination Act (GINA) prohibits discrimination based on genetic information (genetic tests, family medical history). Applies to employers with 15+ employees. Limited exceptions for wellness programs with specific requirements.

Equal Pay Act requires equal pay for equal work regardless of sex. Work need not be identical, only substantially equal (similar skill, effort, responsibility, working conditions). Differences in pay are allowed for seniority, merit, quantity/quality of production, or factors other than sex.

EEOC enforcement involves investigating charges, attempting conciliation, and filing lawsuits. Employees must file charges within 180 days (or 300 days in deferral states with state agencies) of discriminatory act. EEOC can issue right-to-sue letters allowing private litigation. Remedies can include back pay, front pay, compensatory damages (emotional distress), punitive damages (for intentional discrimination), attorney fees, and injunctive relief (policy changes, training).

Occupational Safety and Health Act (OSHA)

OSHA requires employers to provide workplace free from recognized hazards likely to cause death or serious physical harm.

Coverage applies to most private sector employers. Some industries are exempt (self-employed, family farms, government employees covered by other programs). States can operate their own OSHA programs (state plans) that must be at least as effective as federal OSHA.

General duty clause requires employers to identify and eliminate hazards even if no specific standard exists. Violations require showing recognized hazard, likely to cause death or serious harm, feasible means of abatement, and employer knowledge.

Specific standards cover thousands of hazards: fall protection, machine guarding, electrical safety, chemical hazards (Hazard Communication Standard requires safety data sheets, labels, training), respiratory protection, confined spaces, lockout/tagout (controlling hazardous energy), and many others.

Record-keeping requirements mandate employers with 10+ employees (in most industries) maintain OSHA 300 logs recording work-related injuries and illnesses. Recordable injuries include fatalities, lost workdays, restricted work, medical treatment beyond first aid, and certain other conditions. Logs must be posted annually (February through April) and retained for five years. Employers with 250+ employees or in certain industries must electronically submit injury data.

Reporting requirements mandate reporting work-related fatalities within 8 hours and inpatient hospitalizations, amputations, or eye losses within 24 hours. Reports go to OSHA or state plan agency.

Inspections can be scheduled (programmed inspections of high-hazard industries) or unannounced (complaints, fatalities, imminent danger). Employers have right to accompany inspector, request warrant, and contest citations. Citations classify violations as willful, repeated, serious, other-than-serious, or de minimis. Penalties range from $0 (de minimis) to $161,323 per violation (willful or repeated, 2024 amounts).

Whistleblower protection prohibits retaliation against employees who report safety concerns, file complaints, participate in inspections, or exercise other OSHA rights. Retaliation can result in reinstatement, back pay, compensatory damages, and attorney fees.

Federal Hiring and Termination Requirements

Immigration compliance requires employers verify employment authorization using Form I-9 within 3 business days of hire. Employers must examine documents establishing identity and work authorization, complete I-9 form, and retain it for 3 years after hire or 1 year after termination, whichever is later. Violations can result in civil penalties ($272-$2,701 per violation for 2024) and criminal penalties for pattern or practice violations.

Background checks using consumer reports (credit reports, criminal history from third parties) require compliance with Fair Credit Reporting Act (FCRA). Employers must obtain written authorization, provide disclosure, and if taking adverse action based on report, provide pre-adverse action notice (copy of report, summary of rights), wait reasonable period, then provide adverse action notice. State and local ban-the-box laws (prohibiting criminal history questions until conditional offer) add additional requirements in many jurisdictions.

Final pay requirements vary by state (federal law doesn't mandate timing). Some states require immediate payment upon termination, others allow until next regular payday or longer. Federal law requires payment of all earned wages, including accrued vacation if employer policy or state law requires payout.

COBRA continuation coverage allows employees and dependents who lose health coverage due to qualifying events to continue coverage at their own expense. Qualifying events include termination (except gross misconduct), reduction in hours, divorce, death of employee, Medicare entitlement, and loss of dependent status. Applies to employers with 20+ employees. Notice requirements are strict, and employees have 60 days to elect coverage. Coverage continues 18-36 months depending on qualifying event.

Key Federal Thresholds and Deadlines

FMLA eligibility: 50+ employees within 75 miles, 12 months service, 1,250 hours worked. Title VII/ADA coverage: 15+ employees. ADEA coverage: 20+ employees. FLSA exempt salary minimum: $35,568 annually (2024, most exemptions). Federal minimum wage: $7.25 per hour. OSHA record-keeping: 10+ employees (most industries). OSHA electronic reporting: 250+ employees or certain industries. COBRA: 20+ employees. I-9 must be completed within 3 business days of hire. FMLA notice: 30 days when foreseeable. OSHA fatality reporting: 8 hours. OSHA serious injury reporting: 24 hours. EEOC charge filing: 180 days (300 days in deferral states). FLSA statute of limitations: 2 years (3 years for willful).

Common US Federal Misconceptions

"Federal law requires severance" is false—severance is typically voluntary unless required by contract or policy. "FMLA is paid leave" is unpaid job protection, though some employers provide paid leave concurrently. "Exempt employees can't receive overtime" is generally true, but misclassified non-exempt employees are entitled to overtime regardless of salary. "Small employers don't need to worry" ignores that many requirements apply regardless of size (FLSA, OSHA, anti-discrimination at various thresholds). "I-9s can be filed away immediately" must be retained for specific periods and made available for inspection. "OSHA only applies to dangerous jobs" applies to all covered employers, with standards covering office environments, retail, and other seemingly safe workplaces.