Navigating federal, state, and local employment laws
In February, J. J. Keller & Associates, Inc., surveyed HR professionals on their compliance challenges. The number one issue the 572 respondents noted was navigating the intersection of federal, state, and local laws.
The world of employment laws is never quiet, and the current pace at which the landscape is changing shows no signs of slowing down. Employers can have a tough time keeping track of the laws at all levels, particularly if they have employees in multiple states.
Businesses must comply with various employment laws to avoid costly legal fines, penalties, lawsuits, and reputational damage.
How these laws work together
Federal laws provide a baseline on which state laws can, and often do, build upon. Where federal laws have gaps, state or local laws serve to fill in. Some details to keep in mind include:
- Laws don’t generally contradict each other, but often overlap or intertwine.
- Employee leave, for example, which falls under both federal and state laws can usually run concurrently.
- The state employment laws of the state in which the employee works govern. It doesn’t generally matter where the employee lives or where the corporate office is.
- If, for example, an employee works from their home in Minnesota while the corporate office is in Illinois, the Minnesota employment laws apply to the employee.
- One law doesn’t generally supersede another; employers must look at all provisions of the applicable laws and apply the one that gives employees the greater benefit.
- If, for example, a municipal ordinance’s minimum wage is $15 per hour, while the state minimum wage is $14 and the federal minimum wage is $7.25, employees who work in the municipality must be paid $15 per hour.
Common themes
Topics that many state laws govern include:
- Minimum wage*
- Employee leave*
- Sexual harassment training
- Pay transparency*
- Meals and breaks
- Child labor
*These have currently seen several changes.
Employers should regularly review and update workplace policies and handbooks to reflect changing requirements.
How to stay up to date
Employers must stay informed of applicable employment law changes. Finding resources to help notify them of changes can help. These can include government entities. Other sources include services that track such changes, such as J. J. Keller’s® Compliance Network™.
Whichever method employers use, they might assign a specific individual (or individuals) responsible for tracking developments.
Key to remember: Learning about the various employment laws and applicable changes continues to be a challenge for employers.