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What Are Labor Law Violations? A Comprehensive Guide

Labor law violations can be one of the trickiest issues you face as an employer if you don’t adhere to labor laws and regulations. No matter how burdensome or challenging these laws may be, the government takes such laws seriously, and ignoring them can have several serious repercussions.

But if you have the appropriate strategy and workforce management software, you won’t have to fight hard to avoid labor law violations.

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What This Article Covers:

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What Are Labor Laws?

Labor laws are regulations that outline rights and liabilities in the workplace, notably those of the employees and the employer. As different jurisdictions have different laws, this definition only applies to U.S. labor law.

Fair hiring practices are the first step in protecting employee rights. Some major regulations to consider regarding fair hiring practices include:

  • A background or credit verification on a candidate is illegal without the applicant’s express written consent.
  • Employers are not permitted to treat applicants differently based on age, ethnic background, religion or national origin.
  • The Americans with Disabilities Act (ADA) prohibits employers from discriminating against applicants with disabilities unless their condition prevents them from performing job-related duties.

Labor law also outlines the protocols for successful employee offboarding or exit management.

Two necessary acts related to labor laws are as follows:

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) sets minimum wages, eligibility for mandatory overtime pay, record-keeping requirements and child labor laws that apply to full-time and part-time employees of the private sector and the federal, state and local authorities.

All workers holding positions subject to the FLSA’s requirements for mandatory overtime are protected. Employers must compensate every hour over 40 in a workweek that an overtime-eligible staff member works. This rate is higher, often 1.5 times the typical pay.

Additionally, FLSA gives employees legal rights to a safe workplace environment devoid of potentially harmful substances, materials and defective equipment. Employees are entitled to refuse work until the employer fixes the condition if they determine an urgent and significant health risk is present in the workplace.

According to FLSA, employees working for an organization for 12 months are entitled to up to 12 weeks of unpaid medical or paternity leave without losing their jobs.

Whistleblower Protection Programs

In the United States, public workers are shielded from retaliation by whistleblower protections in exchange for disclosing information about fraudulent or illegal activities in a government institution.

These laws forbid federal agencies and employers from disciplining or threatening to discipline staff or applicants for revealing information that they believe broke the law, a compliance guideline or other legislation.

Reports of improper management behavior, financial mismanagement, abuse of power and a possible threat to public health or well-being are just a few examples of possible disclosed information.

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Violations

Labor law violations are serious offenses and can land you and your organization in quite a bit of trouble.

Let’s examine some critical consequences that violating labor laws can bring to your business.

Financial Penalties

Most labor laws permit fines. For instance, the Department of Labor (DOL) states that companies may be subject to civil penalties of up to $1,000 for each breach of minimum wage laws if they do so knowingly. Protections against child labor violations can result in civil fines of up to $10,000 for each employee involved.

Workers may also be obligated to back pay the cost of lost benefits and interest charges based on the particular compliance requirement.

Legal Costs

The workforce may also file individual lawsuits against employers for employment law violations, making the latter responsible for the costs of the proceeding. In one example, an industry’s inability to keep accurate time records resulted in a $5.8 million FLSA jury award, which the Supreme Court upheld.

Unfavorable Legal Rulings

Litigation resulting from infringements of employment law can have other legal consequences for businesses in addition to legal expenses, settlement fees or jury awards. For instance, the National Labor Relations Board (NLRB) urged its branch offices in 2018 to increase labor injunctions, saying, “aggressively pursue momentary interim injunction to stop kinds of presumably unfair labor practices.”

In other words, legal conclusions may interfere with an employer’s ability to carry out routine business operations. Courts have the power to shut down companies in extreme circumstances.

Reputational Problems

Even the mainstream press may become aware of some labor law violations, promoting overall public scrutiny of corporate behavior. For instance, Starbucks labor policies made headlines worldwide after receiving criticism. The effects of this media attention can range greatly, but no employer hopes to find itself in a public affairs crisis that might hinder operations and turn off clients.

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Major Labor Laws

The DOL’s main statutes frequently affect businesses, job seekers, employees, retirees and contractors.

This concise overview will familiarize you with the primary labor laws.

Wages & Hours

The Fair Labor Standards Act sets the minimum wage and overtime compensation requirements that apply to most private and public jobs. The Wage and Hour Division is responsible for enforcing the law.

Employers must give covered workers who aren’t exempt from the law at least the governmental minimum wage and overtime pay that is 1.5 times their standard pay rate.

It limits the number of hours individuals under the age of 16 can work in non-agricultural activities and prohibits hiring minors under 18 for specific jobs that are considered too dangerous. It forbids the employment of kids younger than 16 in agriculture activities during school time and in jobs considered too risky.

The Immigration and Nationality Act’s labor standards clauses, which apply to foreign nationals having working permission in the United States under specific nonimmigrant visa applications, are also enforced by the Wage and Hour Division (H-1B, H-1B1, H-1C, H2A).

Workplace Safety & Health

The Occupational Safety and Health Administration (OSHA) is in charge of enforcing the Occupational Safety and Health (OSH) Act. State initiatives approved by OSHA govern most private corporations’ occupational health conditions and workplace safety. These regulations also apply to employers in the public sector.

Employers subject to the OSH Act are required to follow OSHA’s rules and occupational health and safety requirements. According to the OSH Act, companies must give workers jobs and a worksite free from known health hazards. OSHA inspects workplaces and monitors them to enforce the law. There are also collaborative initiatives and compliance support available.

Workers’ Compensation

Employees should get in touch with their state’s workers’ compensation program if they work in a privately owned company or a state agency. State workers’ compensation programs are not managed or overseen by the Office of Workers’ Compensation Programs of the U.S. Department of Labor.

Employee Benefit Security

Employers who provide pension or welfare benefits are subject to Employee Retirement Income Security Act (ERISA) regulations. The Employee Benefits Security Administration (EBSA), which oversees Title I of ERISA, imposes a broad range of contracts, disclaimers and disclosures on fiduciary duties of retirement and welfare pension schemes.

These provisions circumvent many related state laws. According to Title IV, many companies and plan superintendents must pay premium costs to the national government’s Pension Benefit Guaranty Corporation to maintain an insurance system that will protect specific types of pensions and benefits.

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and the prerequisites for health care mobility both have reporting obligations that the EBSA oversees.

Unions & Their Members

The Landrum Griffin Act of 1959, also called the Labor-Management Reporting and Disclosure Act, is a piece of labor legislation that establishes rules for the internal operations of labor unions and their officers’ interactions with employers. This law’s primary goal is to ensure union practices are equitable.

It safeguards union funds and fosters union democratic values by requiring labor organizations to submit yearly financial reports and mandating union officials, labor advisors and employers to submit information related to particular labor relations practices. It also establishes criteria for the election of union leaders. The Office of Labor-Management Standards is responsible for enforcing the law.

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Employee Protection

Employees who report legal infringements by their employers must be protected as whistleblowers under the majority of labor, public security and environmental protections. Back pay and employment resumption are examples of remedies. OSHA enforces the majority of laws’ whistleblower protections.

Garnishment of Wages

The Consumer Credit Protection Act, overseen by the Wage and Hour Division, regulates workplace wage garnishment.

Family & Medical Leave Act

The Family and Medical Leave Act (FMLA), which the Wage and Hour Division oversees, mandates that employers with 50 or more workers must offer up to twelve weeks of unpaid, employment-protected leave to staff members for the birth or adoption of children as well as for serious illnesses affecting the employee or a partner, child or family member.

Veterans’ Preference

Veterans and other qualified individuals have special workplace rights with the national government. They are given preferential treatment in initial recruitment and security during force reductions. The Veterans Employment and Training Service investigates complaints if employers violate these rights.

Government Contracts, Grants and Financial Aid

Pay rate, hour, benefit, and health and safety guidelines apply to those who receive federal contracts, subsidies or financial assistance under several acts.

  • The Davis-Bacon Act mandates that workers of contractors working on governmental construction projects receive predominant wages and benefits.
  • The McNamara-O’Hara Service Contract Act establishes pay scales and additional labor requirements for personnel of contractors assisting the federal government.
  • The Walsh-Healey Public Contracts Act mandates that companies supplying goods and services to the federal government pay minimum wage rates and adhere to other labor laws.

Migrants & Seasonal Agricultural Workers

The Migrant and Seasonal Agricultural Worker Protection Act governs associations that hire migrant and seasonal laborers and agricultural employers’ hiring and employment practices. The Act establishes housing and transport safety standards, farm labor contractor licensing requirements, and disclosure standards. It also specifies wage protections. The Wage and Hour Division administered this law.

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Mine Safety & Health

All individuals working on mine property are protected by the Federal Mine Safety and Health Act of 1977 (Mine Act). The Mine Safety and Health Administration (MSHA) manages this act.

The Mine Act holds mine operators accountable for the health and safety of mine workers, sets forth prerequisites for miners’ mentoring, establishes mandatory health and safety requirements, specifies punishments for violations, and gives supervisors the authority to close unsafe mines.

Roof falls, poisonous and flammable gasses, fire, power generation, equipment spinouts and preservation, harmful airborne particles, noise, and inhalable dust are just a few of the hazards covered by safety and health standards.

Around 13,000 mines are subject to MSHA’s enforcement of safety and health regulations, which also includes accident investigations, preparing for mine operators, compliance support and technical assistance.

Construction

Numerous organizations manage initiatives specifically for the construction sector.

The Office of Federal Contract Compliance Programs enacts Executive Order 11246, which mandates that federal construction subcontractors and contractors, as well as federally subsidized construction firms, offer equal job opportunities.

OSHA has workplace safety and health standards and guidelines. The Wage and Hour Division, under the Davis-Bacon Act and associated legislation, requires financial responsibility for prevailing wages and benefits.

Transportation

Organizations outside the Department of Labor carry out the majority of labor laws governing the transportation sector. OSHA, however, is responsible for issuing and enforcing longshoring and maritime sector health and safety regulations.

Employers must ensure that employees’ compensation is financially supported and available to qualified employees per the Longshore and Harbor Workers’ Compensation Act.

In addition, when federal funds are used to purchase, enhance or run a transit system, the rights of those working in the mass transportation sector are safeguarded. Before the Department of Transportation can make payment to grantees under the Federal Transit Law, the Department of Labor must approve worker protection plans.

Plant Closing & Layoffs

The Worker Adjustment and Retraining Notification Act (WARN) may apply to plant closing and layoffs. WARN provides employees with advanced notice of impending closures or layoffs.

Although neither the Employment and Training Administration (ETA) nor the Department of Labor has primary responsibilities for the statutory provisions, which are implemented through private procedures in federal courts, ETA does provide the general public with information about WARN.

Posters

Notices must be given to workers and published in the workplace per some laws and guidelines that the U.S. Department of Labor is responsible for enforcing. DOL offers free digital and printed versions of these necessary posters.

Employers can use the elaws Poster Advisor to evaluate which posters must be displayed at their location(s) of business. Directly from the advisor, posters in English and other languages can be accessed and printed.

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Leveraging Software

Workforce management tools and other HR software, created to help you navigate and keep track of the complex web of regulatory compliance requirements you may deal with every day, are a crucial resource.

Workforce management software configured to mitigate federal, state and local labor law violations often seamlessly integrate with existing human capital management (HCM) platforms and payroll systems to assist businesses in lowering compliance risk.

You should be aware of numerous issues to stay compliant and protect yourself from needless and expensive litigation. Robust workforce management software may help you in doing so.

A comprehensive workforce management software may help you with the following attributes:

Employee Classifications

State and federal institutions committed to enforcement are constantly drawn to the need for accurate worker classification. The costs of worker misclassification can be high, and companies may be penalized.

Depending on the employee’s classification, according to labor laws, employers must pay extra shifts when some staff members work more than 40 hours a week.

The federal Fair Labor Standards Act categorizes employees into exempt and non-exempt status, and workforce management software aids you in determining who qualifies for overtime and keeping track of employees’ working hours.

Employee Leave

It can be challenging to distinguish between the specific paid leave options offered voluntarily by businesses and those mandated by law. The Family and Medical Leave Act governs reasonable durations of unpaid, job-protected time off for reasons like childbirth or caring for a sick relative.

FMLA and the Fair Labor Standards Act don’t govern sick pay, vacation leaves or paid time off. Even though you voluntarily provide that time off, you still need to record it.

Employee Pay

According to the American Payroll Association, one of the most governed departments in a company is payroll, which has to adhere to numerous federal, state and local regulations.

Settlements for wages and hours represent a costly compliance challenge for businesses. Investing additional funds in workforce management solutions is preferable to spending massive money on lawsuit cases.

It is more crucial than ever to ensure that your company follows labor laws, given the increased surveillance and possibilities for penalties and fines. Workforce management software keeps track of regulatory requirements, ensures accurate pay, and preserves a thorough audit trail.

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Conclusion

Employees and job applicants often question overtime, unpaid leave, comp time, salaries and other issues relating to employee rights. Labor law can be complex, making it challenging to understand rights and entitlements. Because of its complexity, some employees and employers aren’t even aware when there is a labor law violation at their workplace.

Understanding the various regulations pertaining to your industry, setting clear goals and plans, and aiding your compliance with workforce management software can prevent labor law violations.

How does your business avoid labor law violations? Tell us in the comments section below!

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