What Is Employment Law?

Employment law is the section of laws that govern the

relationship between an employee and their employer,
including the rights and responsibilities of both parties. It
helps to ensure that a workplace is safe and appropriate to
work in, govern the hours that an employee can work and
determine the wages that an employee can receive. Included
in employment law are many regulations from all levels of
government. Due to how extensive employment law is, it's
often divided into different areas, such as workplace safety,
wages, benefits, family and medical leave, unemployment
and workplace conduct.

Why is knowing about

employment law important?

Employment law is designed to ensure that all parties in a

business get treated fairly and ethically, which can help to
keep a business running efficiently. If both an employer and
employee understand what their rights and obligations are,
they can be more prepared in certain situations, such as in a
case of salary misclassification. Employment law can also
help to prevent work disruptions between employees and
management by setting standards to govern the workplace.
Employment law can mitigate issues that may arise in the
workplace. For example, Title VII of the Civil Rights Act of
1964 prohibits discrimination.

Key terms related to

employment law

Most businesses have some type of employment law they

follow. There is a wide range of subject areas related to
employment law, and each often has its own set of standards
and associated terms. Here are some aspects of employment
law and the key terms that relate to them:

Employment discrimination

Discrimination in the workplace occurs when a member of a

protected class experiences different treatment than their
peers. While discrimination can take many forms, it's
prohibited by law. Here are a few terms associated with
employment law regarding discrimination:
•Title VII: Title VII prohibits employment discrimination based
on characteristics such as race, color, religion, sex or national
origin.

•Age Discrimination in Employment Act: This law prevents

employers from discriminating on the basis of age.

•The Equal Pay Act: This law protects men and women from
wage and benefit discrimination based on gender.

•Americans with Disabilities Act (ADA): This law prohibits

discrimination based on disabilities, requiring employers to
provide reasonable accommodations for employees with
disabilities.
•The Pregnancy Discrimination Act: This act amended Title
VII to prohibit employers from discriminating due to
pregnancy or a condition related to pregnancy or childbirth.

•Genetic Information Nondiscrimination Act (GINA): This act

prohibits discrimination on the basis of genetic information.

Wages and benefits

In addition to paying employees hourly wages or annual

salaries, many employers offer their employees access to
benefits such as health and dental insurance, paid time off
and retirement plans. Employment law covers most aspects
of an employee's compensation and benefits. Here are a few
key terms associated with this section
of employment law:

•Fair Labor Standards Act (FLSA): This act sets the standard

for minimum hourly wages, establishes overtime pay and
defines what can be considered work.

•Minimum wage: The minimum wage represents the lowest

amount that an employer can pay their employees and often
varies, depending on the area.

•Overtime compensation: This represents the amount that

the government requires an employer to pay an employee
for working over 40 hours a week, typically at a higher rate of
pay than their regular rate.

•Wage garnishment: This occurs when

an employer withholds part of an employee's earnings to pay
off a creditor.

•Consolidated Omnibus Budget Reconciliation Act

(COBRA): This law allows employees and their families to
continue to access their group health benefits at the same
rate, even after leaving their job.

•Employee Retirement Income Security Act (ERISA): This law

governs how companies administer healthcare benefits and
pension plans, requiring employers to manage plans
according to a certain set of standards.

•Tuition reimbursement: In some situations, employers may

offer to pay all or part of an employee's tuition for
training as a condition of the position.

•Stock options: With stock options, employees can purchase

stock in their company.

•Cafeteria plan: With this type of benefits plan, employees

can select certain benefits from a list up to a specified .

Health and safety

All employees have the right to a safe workplace free of

certain hazards. Under employment law, the government can
hold employers responsible for medical costs if an employee
becomes injured on the job. Here are a few key terms
associated with employment law regarding the health and
safety of a workplace:
•Occupational Safety and Health Administration
(OSHA): OSHA is the regulatory agency that's responsible for
creating health and workplace safety standards, in addition
to enforcing those standards.

•Occupational Safety and Health Act: This act helps to

minimize dangers in the workplace by establishing certain
standards, including provisions for specific industries, such as
the construction industry.

•Occupational disease: This is any illness that's associated

with a particular work environment.

•Environmental hazard: Environmental hazards in the

workplace include any
substance that can adversely affect an individual's health or
the surrounding environment.

•Emergency Action Plan: This is a plan that's put into place

during certain emergencies, typically due to the risk involved
in certain work sites.

Additional aspects of employment law

Besides health and safety, wages and benefits and

discrimination, employment law also often focuses on labor
relations, unemployment compensation, family and medical
leave, employee contracts, immigration and even the hiring
process. Certain industries may have additional
considerations for some aspects of
employment law. Here are a few additional terms relating to
employment law:

•At-will employment: With this form of employment, both

the employer and employee aren't under a contractual
agreement and either can leave the relationship at any time
and for any reason.

•Wrongful termination: A wrongful termination occurs when

an employee has their employment illegally terminated by
the employer.

•Noncompetition agreement: This is an agreement in which

an employee makes a promise to an employer that they
won't work for a competing employer, typically for a certain
amount of time.
•Unemployment: This is a financial benefit paid to an
individual who no longer has a job, typically comprising a
certain percentage of their former earnings.

•Whistleblower: Whistleblowers are individuals who gain

access to certain legal protections after they report their
employers to the authorities for illegal actions.