By Staff Writer | 05/08/2025
“What is employment law?” is a question that’s had myriad answers throughout history. Like many other legal disciplines, employment law is constantly evolving.
During the past century, for example, federal and state governments have enacted numerous laws. These employment laws have transformed the workplace and redefined labor relations.
Why Is Employment Law Important?
Also known as “labor laws,” employment laws regulate employment practices. They vary depending on industry, location, and the number of workers at an organization. However, companies must comply with federal employment laws, as well as applicable state and local labor laws.
Collectively, these employment laws cover everything from workplace safety standards to minimum wage requirements and the criteria that entitle employees to receive overtime pay. They also help protect workers’ rights.
Some Noteworthy Federal Employment Laws
Most federal employment laws were enacted during the 20th century. The Bureau of Labor Statistics (BLS) mentions that “working conditions for the average American worker were fairly grim” in the early 1900s.
Factories relied heavily on child labor, and dangerous work environments were ubiquitous throughout the country. Workers of all ages compromised their health and safety just to fulfill their daily job duties.
As the decades went by, working conditions eventually improved, thanks to several federal employment laws:
- The National Labor Relations Act (NLRA) of 1935
- The Fair Labor Standards Act (FLSA) of 1938
- The Equal Pay Act of 1963
- The Age Discrimination in Employment Act (ADEA) of 1967
- The Occupational Safety and Health (OSH) Act of 1970
- The Equal Employment Opportunity Act (EEOA) of 1972
- The Employee Retirement Income Security Act (ERISA) of 1974
- The Pregnancy Discrimination Act (PDA) of 1978
- The Family and Medical Leave Act (FMLA) of 1993
These federal laws collectively address working conditions, hiring practices, and employer-employee relationships.
The National Labor Relations Act
One of the first federal employment laws, the NLRA still applies to employment issues that affect millions of workers today.
According to the National Labor Relations Board (NLRB), the NLRA “protects democracy by providing employees at private-sector workplaces the fundamental right to seek better working conditions and designation of representation without fear of retaliation.”
There are a few noteworthy ways the NLRA fulfills this goal. First, it protects workers’ rights to unionize and preserves unions’ rights to employ collective bargaining strategies.
Labor unions use collective bargaining to negotiate with employers regarding issues like wages, work schedules, and other employment areas.
The NLRA also protects against unfair labor practices. When necessary, the NLRB can open investigations into accused employers, labor unions, and employees.
The Fair Labor Standards Act
When it was enacted, the Fair Labor Standards Act introduced a $0.25-per-hour federal minimum wage rate. Over the years, this rate increased. By 2009, the federal minimum wage reached $7.25 per hour, where it remains today.
“The FLSA regulates overtime pay, child labor practices, and recordkeeping standards,” explains Dr. Gary Deel, a human resource management professor at the Dr. Wallace E. Boston School of Business at American Military University (AMU).
“The FLSA ensures employees receive at least the federal minimum wage and overtime – time-and-a-half – compensation for their work above 40 hours in a workweek,” he says.
The Equal Pay Act
The Equal Pay Act provides wage protections by prohibiting employers from discriminating based on sex. “This act demands equal pay for equal work in the same establishment,” observes Dr. Deel.
According to the Department of Labor (DOL), this legislation covers all forms of compensation:
- Salary
- Overtime pay
- Bonuses
- Life insurance
- Vacation and holiday pay
- Cleaning or gasoline allowances
- Hotel accommodations
- Reimbursement for travel expenses
- Benefits
The Age Discrimination in Employment Act
“The ADEA safeguards individuals 40 years of age and older against certain unfair practices surrounding hiring, firing, and promotions,” Dr. Deel explains.
According to the U.S. Equal Employment Opportunity Commission (EEOC), there are two additional acts that contain amendments to the ADEA: the Older Workers Benefit Protection Act of 1990 and the Civil Rights Act of 1991.
The Occupational Safety and Health Act
The purpose of the Occupational Safety and Health Act is “to assure safe and healthful working conditions for working men and women.” According to the Department of Labor, passing the OSH Act also established the Occupational Safety and Health Administration (OSHA).
OSHA enforces the OSH Act in states and territories under federal jurisdiction. The agency’s mission is multidimensional, and it includes:
- Creating and enforcing workplace health and safety standards
- Providing training, education, and assistance to state OSHA programs
- Ensuring state OSHA programs align with federal OSHA objectives
OSHA’s regulations are especially relevant to organizations whose employees face occupational hazards. For example, OSHA plays a major role in governing the construction industry.
The agency even conducts surprise workplace inspections. These inspections help to ensure compliance with its health and safety standards.
Furthermore, OSHA oversees its own Whistleblower Protection Program. This program helps prevent employers from retaliating against employees who voice their concerns about health and safety hazards in the workplace.
The Equal Employment Opportunity Act
According to the Court Services and Offender Supervision Agency (CSOSA), the Equal Employment Opportunity Act created the Federal Equal Employment Opportunity (EEO) program.
As the CSOSA states, the program “is designed to ensure fair treatment to all segments of society without regard to race, religion, color, national origin, or sex," under Title VII of the Civil Rights Act of 1964.
The Equal Employment Opportunity Commission
The EEOC is a byproduct of Title VII of the Civil Rights Act of 1964. First active in 1965, it predates the Equal Employment Opportunity Act but is integral in enforcing federal anti-discrimination employment laws.
As the Equal Employment Opportunity Commission states, it enforces laws that prohibit discrimination against job applicants and employees based on:
- Race
- Color
- Religion
- Sex (including pregnancy, childbirth, or related conditions, transgender status, and sexual orientation)
- National origin
- Age (40 or older)
- Disability
- Genetic information
The Employee Retirement Income Security Act
The Employee Retirement Income Security Act is a federal labor law that regulates retirement and health plans for private-sector companies. According to the Department of Labor, ERISA “sets minimum standards for participation, vesting, benefit accrual, and funding.”
The DOL explains that ERISA also provides certain protections to employees who participate in employer-provided plans. For example, ERISA stipulates that participants must have access to information about plan features and funding.
The Department of Labor underscores ERISA’s other functions as well, stating that the Act:
- Provides fiduciary responsibilities for those who manage and control plan assets
- Requires plans to establish a grievance and appeals process for participants to get benefits from their plans
- Gives participants the right to sue for benefits and breaches of fiduciary duty
- Guarantees payment of certain benefits through the Pension Benefit Guarantee Corporation (PBGC) if a defined benefit plan is terminated
The Pregnancy Discrimination Act
As the Department of Labor explains, this Act “prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions.” As a result, any company that cites pregnancy as grounds for employee dismissal is guilty of wrongful termination. At the same time, citing pregnancy as a reason to dismiss job candidates during the hiring process is also illegal.
The Family and Medical Leave Act
The Family and Medical Leave Act is a federal employment law that focuses on preserving job security. “Through the FMLA, qualified employees are entitled to take up to 12 weeks of unpaid leave in a year for reasons relating either to their health or their family life,” says Dr. Deel.
Specifically, this legislation protects workers who act as caretakers for their family members, including children, spouses, and parents. It also protects workers against being terminated for taking time off to receive medical treatment.
In addition, the FMLA provides special protections for families of servicemembers, according to the Department of Labor. It allows employees 26 work weeks annually “to care for a covered servicemember with a serious injury or illness if the eligible employee is the servicemember’s spouse, son, daughter, parent, or next of kin.”
“It’s important to remember, however, that this type of leave is unpaid,” observes Dr. Deel.
Other Federal Laws That Provide Important Employee Protections
Some federal laws help preserve fundamental employment rights, even though they aren’t technically employment laws. For example, Title VII of the Civil Rights Act of 1964 addresses civil rights both within and beyond the workplace.
“Title VII forbids discrimination in employment on the grounds of race, color, religion, sex, or national origin. Administered through the Equal Employment Opportunity Commission, this law ensures equitable treatment in recruiting, discharge, promotions, and terms of employment,” Dr. Deel explains.
Similarly, the Americans with Disabilities Act (ADA) of 1990 considers the rights of disabled citizens as they apply to a broad scope of settings.
“The Americans with Disabilities Act forbids discrimination on the grounds of disability. It also requires employers to make reasonable accommodations in favor of qualified applicants or employees – unless doing so would impose undue hardship,” says Dr. Deel.
Which Employee Benefits Does the Federal Government Mandate?
According to the BLS, the federal government requires employers to provide five different types of benefits:
- Social Security
- Medicare
- Federal unemployment insurance
- State unemployment insurance
- Workers’ compensation
Still, employee welfare benefit plans can differ quite significantly from one private-sector company to the next. For example, a small business might limit its benefit package to include only legally mandated employee benefits.
Larger companies, on the other hand, may invest more in employee compensation to attract and retain talent. In fact, certain employers even cover employees’ health insurance monthly premiums in full.
How Do State and Local Employment Laws Help to Supplement Federal Laws?
“While federal labor laws offer basic minimum protections, they leave broad gaps that are addressed by state and local laws,” states Dr. Deel. “One place where state and local laws commonly supplement federal laws is in the minimum wage.
“The federal minimum wage has been at $7.25 an hour since 2009, and this hourly rate is generally regarded as insufficient in most of the country, relative to the rising cost of living. So, states and cities across the country have created their own laws to mandate higher rates.
“California, for example, has a state minimum of $16 an hour. The cities of San Francisco and Seattle have enacted even higher minimums.”
Moreover, state and local laws may address more nuanced employment issues than federal employment laws cover. For example, many states and cities have adopted “ban-the-box” laws to protect prospective employees seeking new roles. These laws help to safeguard individuals with criminal backgrounds against employment discrimination.
“‘Ban-the-box’ laws prohibit employers from inquiring about criminal history on employment applications. They have been passed in various jurisdictions to promote fair hiring for people who have criminal convictions. These laws are not federally mandated, but they are efforts by states to reduce bias and promote reentry success,” Dr. Deel says.
“Many states also increase protections for employees who are LGBTQ+,” he adds. “While the Supreme Court broadened federal anti-discrimination coverage in 2020 under Title VII for gender identity – as well as sexual orientation pursuant to the Bostock decision – several states had already passed explicit, broad legislation providing additional statutory protection.”
Furthermore, certain states have laws that define the difference between vendor agreements and employment contracts, as Dr. Deel explains.
“California’s AB5 law prevents firms from misclassifying employees as independent contractors. The law allows for more workers to access benefits like unemployment insurance, healthcare safeguards, and protection for their wages,” he says.
“States like New York and California also have anti-harassment regulations that involve required training, which generally leads to more respectful and inclusive environments in the workplace. Federal employment laws do not take this proactive measure.”
Management Degrees at American Military University
Collectively, federal, state, and local labor laws regulate employers’ actions to help ensure workers are treated fairly in the U.S. AMU offers online degree programs that may be suitable for learners interested in learning more about employment laws and other business topics:
- An online Associate of Arts in Management
- An online Bachelor of Arts in Management
- An online Master of Arts in Management
Courses in these degree programs explore topics like human relations, the principles of supervision, and ethics fundamentals. Students can also take courses in management ethics, organizational behavior, management communications, and cross-cultural communications.
There are several concentrations offered within AMU’s management programs:
- Business project management
- Digital retailing
- Entrepreneurship
- Human resource management
- Leadership
- Strategic consulting
- Sports entertainment management
- Talent acquisition and retention
These programs have also received specialty accreditation from the Accreditation Council for Business Schools and Programs (ACBSP®). This accreditation ensures that AMU’s business administration programs have been carefully examined and held to high academic standards.
For more information, visit the University’s business administration and management program page.
ACBSP is a registered trademark of the Accreditation Council for Business Schools and Programs.