Introduction
This guide is intended to provide a brief overview of employment law in the United States. It will assist in-house counsel, private practice lawyers and human resource departments with understanding employment laws and will aid them in ensuring best employment practices are followed in their organization.
In the United States, there is no single source of employment law. Employment law comes from an array of sources including state laws, common law, and federal law. Accordingly, determining which US employment laws apply to a particular situation requires a case-by-case analysis.
This guide covers:
- Employment law basics
- Definition of employee
- The employment relationship
- Wage and hour laws
This guide can be used in conjunction with the entire suite of US employment law content. In particular, see How-to guides: How to draft the key provisions of an employee handbook and How to draft an employment contract.
The complexity and changing nature of federal, state, and local employment law, and the relationship of general employment law with the law relating to collective bargaining and union organizing, requires practitioners to check regularly for updates to the law.
Step 1 – Employment law basics
1.1 Key legislation
Key employment laws in the United States which are referenced in this How-to guide, include the following:
- Age Discrimination in Employment Act of 1967;
- Civil Rights Act of 1964;
- Pregnant Workers Fairness Act of 2022;
- Equal Pay Act of 1963;
- Fair Labor Standards Act of 1938;
- National Labor Relations Act of 1935;
- Taft-Hartley Act of 1947;
- Occupational Safety and Health Act of 1970; and
- The Worker Adjustment and Retraining Notification Act.
Many states have laws that parallel or supplement the foregoing federal laws.
1.2 Nature of relationship – contractual
Employment law in the United States is predominantly governed by the laws of each state, although federal law has preempted or supplemented state law in certain areas, in particular in relation to hours, wages, workers’ rights, and anti-discrimination law. The National Labor Relations Act of 1935 (NLRA) grants all employees in the United States the right to unionize; however, outside of rights gained through union contracts, employee rights generally are weak under state law. Employees are usually employed under a contract that either party can terminate with little or no notice.
For further information about employment contracts, please see How-to guide: How to draft an employment contract.
1.3 State laws
Most US states are what are referred to as ‘at-will states’, meaning that employers (absent a written employment contract or union agreement) may dismiss an employee for any legal reason at any time. Most states have modified this rule, with some adopting so-called ‘covenant of good faith’ and public policy exceptions that allow employers to terminate only for good cause, such as employee misconduct. Under a variety of federal, state, and local laws, employers are not allowed to terminate an employee’s employment for illegal reasons or for a reason that is against a strong public policy. For example, even if an employee is at will, their employment may not be terminated because of their race, or because they participated in a union organizing campaign.
1.4 Areas of federal legislation
1.4.1 Discrimination
Beginning in the 1960s, a series of federal laws were adopted to protect employees against unjust discrimination in the workplace. Among these are the following:
- Title VII of the Civil Rights Act of 1964, which protects job applicants from discrimination based on race, color, religion, gender, gender identity, sexual orientation or national origin;
- the Equal Pay Act of 1963, which protects against gender-based discrimination in pay;
- the Age Discrimination in Employment Act of 1967, which protects persons 40 and older from employment discrimination; and
- the Americans with Disabilities Act of 1990 (Amended 2008), which protects those with disabilities in the workplace.
The US Equal Employment Opportunity Commission (EEOC) enforces these statutes.
1.4.2 Unionization
The NLRA established the National Labor Relations Board and allows private sector employees to form trade unions, to engage in collective bargaining, and to take collective action when the situation warrants. The NLRA also abolished various unfair labor practices, such as company unions.
The NLRA does not apply to public sector employees or to some occupations in the private sector (eg, railroad employees who are covered by the Railway Labor Act). The Taft-Hartley Act amended the NLRA, allowing states to pass so-called ‘right to work’ laws that allow individual employees the right to join or not join a union in an otherwise unionized workplace (29 US Code Sect 158).
1.4.3 Wage and hour laws
The Fair Labor Standards Act of 1938 (FLSA) set the 40-hour workweek, established which employees are eligible for overtime pay, established a national minimum wage, and regulated the employment of minors. The FLSA has been amended numerous times. States continue to set their own fair labor standards, but these laws are in addition to those set by federal statute, not in replacement. For example, some states and municipalities set higher minimum wage standards than the federal standard. In these cases, the higher state or municipal wage applies (29 CFR Part 553). If state law sets a lower minimum wage, the higher federal wage applies.
1.4.4 Unemployment insurance
Unemployment insurance is administered in the United States by the Federal Unemployment Tax Act (FUTA) through a federal-state system, with each state administering their own programs based on federal guidelines. Each program is funded by contributions made by employers to the FUTA and, in some states, to the State Unemployment Tax (SUTA) (26 CFR Part 31). Each state sets its own criteria for which unemployed workers may receive benefits (the typical standard is that benefits will be paid to employees who lose their jobs through no fault of their own). The rate of the benefits is also determined by state law and is usually a percentage of the employee’s most recent wages.
Step 2 – Definition of employee
2.1 Employee versus contractor – importance of distinction
2.1.1 Employee rights
An employee enjoys certain rights and expectations that a self-employed contractor does not. See Checklist: Determining the difference between an employee and an independent contractor. Likewise, employers enjoy certain benefits based on whether the worker providing services to their business is an employee or a contractor. An employer relying on contractors does not have to withhold income taxes from the contractor’s pay, does not have to include contractors in any employee benefit plan, such as health insurance, and a contractor is not entitled to unemployment benefits when their employment ends. Employees provide the advantage of being available in the long term, rather than just for a particular project.
Note
The term ‘worker’ has no legal significance in the United States but is used to refer to anyone who performs services for another for compensation, ie, both employees and contractors.
Federal anti-discrimination law
Employees of companies whose total number of employees is above a certain threshold (this threshold varies depending on the type of discrimination alleged) are covered by federal anti-discrimination laws enforced by the EEOC.
Withholdings
Federal and state law require employers to make certain withholdings, such as income and payroll taxes, from employees’ paychecks.
Benefits
Most established companies offer a variety of benefits to employees that they do not offer to contractors, including health insurance, sick days, and paid leave. Some states require employers to offer employees paid sick leave.
Workers’ compensation laws
Employees are also covered by workers’ compensation laws. Workers’ compensation allows an employee to recover for injuries suffered as a result of his or her employment without needing to prove fault and without having the claim be subject to common law defenses such as the fellow-servant doctrine, which provides that an employer is not liable for injuries sustained by one employee through the fault of another employee during the course of his or her employment. The amount of compensation an employee is eligible to receive is usually limited by statute, and employees are barred from bringing a tort action against their employers for injuries.
Every US state (except for Texas) requires employers to carry workers’ compensation insurance to provide workers’ compensation coverage for employees. A Texas employer who does not carry workers’ compensation insurance may be sued by an injured employee in court, and traditional tort defenses such as contributory negligence are not available to the employer. In 2024, roughly 24 percent of Texas employers were uninsured. Eligibility for and coverage under these schemes vary by state. Some states have state-administered funds, and others require employers to seek coverage through commercial carriers.
Unemployment compensation
Employees in every state are eligible for unemployment compensation through their state department of employment security. Unemployment compensation is paid to an employee who loses their job through no fault of their own. An employee who is terminated for misconduct or who quits voluntarily is ineligible. Unemployment compensation is paid via the state by insurance maintained by each employer.
2.1.2 Employee versus contractor – definition of employee
The precise definition of an employee or a contractor will differ according to the purpose for assessing the difference. The more control a business exerts or may exert over a worker the more likely it is that the worker is an employee rather than a contractor, irrespective of how the business and worker characterize the relationship (a written agreement is one factor considered in making the determination, but is not conclusive). See Department of Labor Fact Sheet 13.
2.1.3 IRS criteria for employee
Whether a worker who provides services to an employer is an employee or a contractor has important tax implications. The US Internal Revenue Service defines an employee as anyone who provides services to a business if that business ‘can control what will be done and how it will be done’ (IRS Tax Tips Classifying Workers).
In making this analysis, the IRS looks at three factors.
- The first is behavioral. Does the business have control over what the worker does and how the worker does it?
- The second is financial. How is the worker paid, how are expenses reimbursed, and who provides resources and tools for the labor?
- Third, what is the relationship of the business and the worker? Does the worker receive benefits from the company? Are taxes and other withholdings made by the employer prior to compensating the worker? See further 26 CFR Sect 31.3401(c)-1. The more control the employer exercises over the worker, the more likely it is the IRS would determine this worker to be an employee.
2.1.4 Department of labor criteria
The FLSA employs an ‘economic reality test’ to determine whether a worker is an employee. The current version of the test, as amended by the DOL RIN 1235-AA43, takes a totality of circumstances approach, but highlights the following six non-exhaustive factors as considerations when carrying out an employee versus independent contractor analysis:
- opportunity for profit or loss depending on managerial skill;
- investments by the worker and the employer;
- permanence of the work relationship;
- nature and degree of control;
- whether the work performed is integral to the employer’s business; and
- skill and initiative.
2.1.5 State law definition
Each of the states of the United States has its own definition of an employee. The distinctions are slight. The common thread is that an employee:
- receives remuneration for the performance, work, or service;
- is engaged in employment under any contract for hire or apprenticeship; and
- there is a contract – express or implied, oral or written.
In 2019, California passed Assembly Bill No 5, amending the state’s labor code and unemployment insurance code. Under the new provisions, a person who provides labor or services for remuneration is an employee rather than an independent contractor unless:
- the hiring entity demonstrates that the person is free from the control and direction of the business in connection with the performance of the work;
- the worker performs work that is outside the usual course of the hiring entity’s business; and
- the worker is engaged in an independently established trade, occupation, or business.
This law redefined the employment relationship between a great many contractors and businesses, turning many contractors into employees for the purposes of labor law and unemployment insurance in California.
2.2 Gig workers – independent contractors
2.2.1 Generally
An independent contractor or ‘gig worker’ is a worker who provides a service to a business but who is not an employee, and who does not enjoy the benefits of employment that the business provides to employees. Under the IRS definition of an independent contractor, the contractor completes the work and has control over how the work will be accomplished with a low degree of control by the business.
2.2.2 Nature of relationship
An independent contractor has a contractual relationship with a business, whether express or implied, in writing or oral. Independent contractors have few, if any, of the employment and anti-discrimination protections provided by federal and state law, and contractors are not entitled to receive employee benefits.
2.2.3 Advantages for employer
Hiring an independent contractor is often financially beneficial for a business. Independent contractors are not eligible for overtime pay, healthcare, or paid time off. The business is not required to cover contractors under workers’ compensation or unemployment insurance. Therefore, costs to the employer are reduced. The services of independent contractors may be engaged and terminated whenever beneficial to the business, with little or no notice or ongoing obligations beyond the terms of the contract between them. Although independent contractors might provide services to the same business for months or years, neither party considers the relationship a permanent one.
2.2.4 Advantages for worker
There are numerous advantages to working as an independent contractor. Skilled contractors often can benefit from working for a flat rate, potentially providing the same product in less time, freeing themselves for other projects. Contractors may move from one project to the next and from one business to the next, working on tasks and in fields that require different skills. They often have more choice over when they work than an employee, who is dictated to by their employer.
Contractors may also take advantage of tax deductions for their work, education, and work-related expenditures, are able to structure their business in specific ways (ie, as a sole proprietor or other entity), and often can negotiate a higher rate for their time than employees.
2.2.5 Recent case law
Castellanos v State of California, 16 Cal.5th 588, 323 Cal.Rptr.3d 337, 552 P.3d 406 (2024): in a significant victory for gig economy giants like Uber and DoorDash, the California Supreme Court unanimously upheld Proposition 22 in July 2024. This decision allows these companies to continue classifying their workers as independent contractors rather than employees. While the ruling disappointed labor unions, some gig workers expressed satisfaction with the flexibility the arrangement offers. Proposition 22, passed by California voters in 2020, was a direct response to the 2019 bill AB 5, which would have mandated employee status for gig workers. The proposition guarantees minimum earnings based on active work time and provides health stipends for those not on public assistance. The Service Employees International Union (SEIU), which challenged the proposition, expressed disappointment but vowed to continue their fight, despite the significant financial resources spent by companies like Uber, Lyft, and DoorDash in support of Proposition 22.
Chavez-DeRemer v Medical Staffing of America, LLC, 147 F.4th 371 (4th Cir. 2025): on July 17, 2025, the US Court of Appeals for the Fourth Circuit upheld a $9 million judgment against a medical staffing company for misclassifying nursing assistants and nurses as independent contractors. The US Department of Labor (DOL) alleged that Steadfast Medical Staffing, based in Norfolk, Va., failed to properly classify approximately 1,110 nurses and nursing assistants as employees under the FLSA. The court found that the nurses were employees and entitled to overtime pay.
Gilchrist v Schlumberger Technology Corp, 143 F.4th 620 (5th Cir. 2025): on July 14, 2025, the US Court of Appeals for the Fifth Circuit clarified the application of the ‘highly compensated employee’ (HCE) exemption under the FLSA. The plaintiff, an oilfield engineer, argued he was entitled to overtime pay. The court held that an employer need only show one qualifying exempt duty for the HCE exemption to apply, provided the employee meets the salary threshold.
E.M.D. Sales Inc v Carrera, No. 23-217: on January 15, 2025, the US Supreme Court ruled that employers bear the burden of proving that a worker falls within a FLSA exemption. The case involved retail sales representatives seeking overtime pay. The Court held that exemptions must be narrowly construed and proven by a preponderance of the evidence, reinforcing employee coverage protections under the FLSA.
Step 3 – The employment relationship
3.1 At-will employment
3.1.1 Definition
Most US states consider employment relationships for non-union employees to be ‘at will,’ meaning that an employer may fire an employee for any legal reason, or for no reason at all. This is the general rule in the United States. However, many states ease the power held by employers by introducing a variety of exceptions to this rule.
3.1.2 Exceptions to rule
Public policy – Restatement (Third) of Employment Law Chapter 5
Some states recognize that certain actions support a public good to such a degree that it would be unfair to allow employers to punish employees by dismissing them for engaging in that action. For example, most states hold that it is against public policy to dismiss a worker for reporting for military training or other public service, for reporting to jury duty, or for engaging in a statutory right, such as filing a workers’ compensation claim. In some states, an employee’s refusal to perform an act that state law prohibits is not fair grounds for dismissal, nor is reporting a violation of the law.
Employees who are dismissed in violation of public policy are generally able to bring an action for damages for unlawful termination.
Example
An employee was repeatedly directed to speed up a construction process by disregarding and violating written procedures. After numerous occasions, the employee told a supervisor that she would report the matter to the appropriate agency if the supervisors persisted in directing her to violate the procedures. The employee was terminated, and she brought suit against her former employer for wrongful termination in violation of public policy. The total of the damages was $102,152, of which $14,256 was attributable to lost wages and employment benefits. The remaining $87,896 was attributable to other forms of damages, including general damages for emotional distress (Cagle v Burns & Roe, Inc, 106 Wn.2d 911, 726 P.2d 434 (1986)).
Implied contract
In some states, an employment relationship is enforceable if an oral promise between an employer and an employee is given, or if written assurances are obtained. Such assurances vary from state to state but may take the form of policies and practices laid out in an employee handbook or other such writing where specific rights are extended to an employee in case of termination, such as a period of notice, or progressive disciplinary procedures that must be followed prior to termination.
For further information on employee handbooks, please see How-to Guide: How to draft the key provisions of an employee handbook.
Implied covenant of good faith and fair dealing
Some states recognize an implied covenant of good faith and fair dealing to prevent employers from malicious or bad faith terminations.
Whether and how public policy, implied contract, or implied covenant doctrines are applied varies from state to state. Not every state recognizes that there is such a covenant in the context of employment claims. Many cases that purport to recognize the existence of the covenant have also held that the employee in the case did not establish a claim. See, eg, Cort v Bristol-Myers Co, 385 Mass 300, 431 NE2d 908 (1982). This case recognized the duty of good faith and fair dealing in the employment context, but held that an employee who claimed that the employer ‘gave a false reason or a pretext for the discharge’ had not alleged a breach of that duty.
3.2 Anti-discrimination laws
3.2.1 Federal laws
Civil Rights Act of 1964 – Title VII
Title VII protects employees, potential employees, and past employees from discrimination based on race, religion, national origin, color, gender, gender identity, or sexual orientation. An employer cannot take an ‘adverse employment action’ such as firing, refusing to hire, demoting, or refusing to promote, etc, based on those criteria. It is important to note that Title VII only covers private or public sector employers that have 15 or more employees. Title VII typically does not apply to independent contractors. See 45 CFR Part 80 for regulations implementing Title VII.
Pregnancy Protections
The Pregnancy Discrimination Act (PDA) amended Title VII to add protection against discrimination based on pregnancy, childbirth, or related medical conditions.
In 2023, the Pregnancy Workers Fairness Act (PWFA) went into effect, adding additional protections for pregnant workers. Specifically, the PWFA requires employers to grant reasonable accommodations to address a workers’ limitations related to pregnancy, childbirth, or related medical conditions unless the accommodation would cause the employer undue hardship. A proposed rule by the EEOC would explicitly include abortions within the scope of ‘pregnancy, childbirth, or related medical conditions.’
Equal Pay Act of 1963
The Equal Pay Act prohibits sex-based wage discrimination between workers in the same business who do the same or similar jobs that require the same skill, effort, and responsibility under the same conditions (29 CFR Part 1620). Independent contractors are not covered by the Equal Pay Act.
Age Discrimination in Employment Act of 1967
The Age Discrimination in Employment Act is designed to protect workers 40 years and older and covers all employers who employ 20 employees or more. It makes it unlawful to refuse to hire or to discharge any individual or otherwise discriminate based on age in relation to compensation, work terms, or conditions of employment. The Act applies to employers, employment agencies, and labor organizations and prohibits all three from penalizing those over 40 due to their age. See 29 CFR Part 1625. Independent contractors are not covered by the Age Discrimination in Employment Act.
Rehabilitation Act/Americans with Disabilities Act
The Rehabilitation Act/Americans with Disabilities Act prohibits private employers with 15 or more employees, public sector employers, labor unions, and employment agencies from discriminating against those with the following:
- a physical or mental impairment that substantially limits one or more of their major life activities; and
- a record of such impairment; or
- those who are perceived as having such impairment.
‘Major life activities’ include caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, or working. The Act requires employers to make reasonable accommodations for otherwise qualified employees in the workplace and prohibits discrimination in hiring or firing, advancement, compensation, job training, and other conditions of employment. See 29 CFR Part 1630.
Harassment
Workplace harassment is regarded as a type of employment discrimination. Employees may not be harassed because of their age, disability, race, religion, national origin, color, gender, gender identity, or sexual orientation. In order to constitute actionable discrimination, the harassment must be severe and pervasive, and the employer must have taken no action to correct it.
Example
A Muslim employee is subjected to constant teasing in the workplace. Other employees make frequent jokes about terrorism and jihad, drape towels around their heads pretending to wear a hijab and dare the employee to eat a piece of bacon. The employee complains to her supervisor who merely laughs and tells her to ‘deal with it. They’re just joking around.’ The employee may be able to make a claim for religious discrimination based on harassment.
A female employee walks by a male co-worker’s workstation. The co-worker looks at her, whistles, and winks. The female employee complains to her supervisor, who tells the male employee not to do that. The male employee never whistles or winks at her again. Based on these facts, the female employee may not make a case of sexual harassment discrimination.
Sexual harassment discrimination may take another form, that of quid pro quo harassment. In that type of harassment, an employee is offered some kind of benefit of employment in exchange for sexual favors.
Occupational Safety and Health Act of 1970
The Occupational Safety and Health Act created the federal Occupational Safety and Health Administration (OSHA) which sets and enforces standards for workplace safety. The Act also encourages states to adopt their own occupational safety programs and regulations. See OSHA: Help for Employers.
Worker Adjustment and Retraining Notification Act of 1988
The Worker Adjustment and Retraining Notification (WARN) Act helps ensure advance notice in cases of qualified plant closings and mass layoffs. It requires covered employers (generally, those with 100 employees or more) to provide advance notice of plant closings or mass layoffs (those impacting 50 or more employees). See DOL: WARN Act Compliance Assistance.
3.2.2 State laws
States have the power to adopt their own anti-discrimination statutes. Every US state, except for Mississippi, and most territories have adopted some local laws against employment discrimination. Such laws are often modelled on the equivalent federal statutes. State laws can provide additional protections for marital status, gender rights, etc, but they cannot provide a lower standard that conflicts with federal rules.
3.3 Unionization
3.3.1 Right to unionize and bargain collectively
Federal law – the National Labor Relations Act of 1935 – guarantees the right of employees to organize and bargain collectively with their employers. Employers have the obligation to bargain in good faith with a duly certified union regarding the terms and conditions of employment. Once bargained for and agreed to, changes may not be made to those terms and conditions except by mutual consent.
3.3.2 Unionization elections
Workers wishing to form a union must file an election petition with the Regional Office of the National Labor Relations Board (NLRB) that has been signed by at least 30% of employees in a particular company or workplace support the union. Once the NLRB assumes jurisdiction, the union is qualified, and the NLRB ascertains there are no existing contracts or pending elections. The employer is required to post a Notice of Petition for Election in a conspicuous place at the work site. The NLRB then will seek an election agreement between employer and union, and an election is then held as soon as practicable. All of the employees in a bargaining unit – defined as a group of two or more employees who share a community of interest and who may reasonably be grouped together for purposes of collective bargaining – vote in the election. Alternately, the union may ask the employer simply to voluntarily recognize an existing union (29 CFR Part 103).
The employer is not allowed to interfere with the forming of the union. Once a union is certified for a group of employees after the employees vote in favor of representation, that union becomes the bargaining agent for those employees, a situation that cannot be changed unless the bargaining unit is decertified by a vote of the employees.
3.3.3 Collective bargaining
The employer is required to bargain in good faith with the union to reach a collective agreement over wages, hours, and other terms of employment. Other terms may include, but not be limited to items such as benefits, leave, and health and safety policies.
Step 4 – Wage and hour laws
4.1 Minimum wage laws
4.1.1 Federal laws
The FLSA applies only to companies with an annual income that exceeds $500,000 or that are engaged in interstate commerce. Courts have interpreted these standards broadly so that virtually every company in the United States is covered by the Act. Exceptions in the Act include small companies that use little or no outside labor, such as family businesses and farms.
Even if a company is not exempt from the FLSA, some positions are exempt from its requirements. Exempt workers include executives, administrators, professionals (eg, lawyers or physicians), outside salespeople, and some skilled workers in the computer field. These must be bona fide positions, with the determination based on the employee’s actual job duties as opposed to their title or formal job description, as provided in 29 CFR Part 541. Exemptions also exist for particular categories of workers, including farmworkers, casual babysitters and companions for the elderly or infirm, and some types of seasonal or part-time employees (29 CFR Part 553).
A special category exists in the FLSA for employees who receive $30 or more of their income per month from tips and gratuities, where tips are counted as part of the wage and an employer is allowed to pay a lower direct wage as a result. The combined wage cannot dip below the federal minimum wage.
4.1.2 State laws
The federal minimum wage has been $7.25 per hour since 2009 ($2.13 per hour for tipped employees). The minimum wage laws of some states do not allow employers to pay a lower wage to tipped employees.
In the interim, some states, and even some municipalities, have set their own minimum wage at a higher rate. In a conflict between federal minimum wages and others, the higher rate controls. For example: the state of Washington sets its 2025 minimum wage at $16.66 per hour.
Some states are enacting laws to also apply minimum wages to gig economy workers. For example, New York City's Local Laws 124 established a minimum wage of $21.44 per hour and requires delivery services to pay workers within seven days after the pay period ends. The Law goes into effect on January 26, 2026, and applies to grocery delivery services, a category previously excluded, which has led to legal challenges from companies like Instacart. These laws also mandate that apps provide options to tip at the time of order placement and offer an itemized pay statement.
4.2 Overtime pay
4.2.1 Federal laws
The FLSA requires employers to pay employees covered by the Act at a rate of 1.5 times their regular rate for each hour worked over 40 hours in any workweek. There is no cap on how many hours an employee over 16 years of age may work (29 CFR Part 778). As with wage laws under the FLSA, there are exemptions to overtime laws, including exemptions for all managerial employees, most highly specialized employees, farmworkers, live-in domestics, and some delivery and transportation workers (29 CFR Part 553).
A ‘work week’ is defined as 168 consecutive hours, and may start on any day, provided that the employer is consistent (ie, an employer may not shift the starting day of the week from Sunday to Monday, and then back to Sunday, in order to avoid paying overtime). Employers may not ‘average’ work hours, ie, if an employee works 30 hours one week and 50 hours the next week, the employee is entitled to overtime pay for the ten additional hours worked in the second week. The employee may not avoid paying overtime by claiming that the employee worked an average of 40 hours per week.
4.2.2 State laws
Some states set their own overtime pay requirements. As in the case of minimum wage laws, federal law acts as a floor. State laws cannot reduce workers’ rights below what the FLSA provides. California, for example, requires employers to pay employees time and a half for any hour worked over eight hours in a workday, double time for any hours worked over 12 hours in a workday, and double time for all hours worked on a seventh consecutive day of work in a workweek.
Additional Resources
National Conference of State Legislatures, Discrimination and Harassment in the Workplace
National Labor Relations Board, Basic Guide to the National Labor Relations Act
US Department of Labor, Summary of the Major Laws of the Department of Labor
Related Lexology PRO content
How-to guides
How to draft an employment contract
How to draft the key provisions of an employee handbook
How to protect trade secrets in the employment relationship
How to use arbitration agreements in employment
How to prepare for an Occupational Safety and Health Administration (OSHA) inspection
How to comply with the unemployment insurance program
How to make reasonable accommodations for employees with disabilities
How to investigate workplace harassment complaints
How to develop a whistleblower policy and reporting program
Checklists:
Determining the difference between an employee and an independent contractor
Dealing with workplace injuries
Developing a Bring Your Own Device (BYOD) policy
Employee drug testing
Terminating the employment of an at-will employee
Drafting a non-compete agreement
Developing an Equal Employment Opportunity Commission (EEOC) compliant policy
Responding to an Equal Employment Opportunity Commission (EEOC) charge
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