State & Federal Labor Laws Employers Need to Know in 2024

The ADEA prohibits employment discrimination against individuals age 40 or older. Employers cannot discriminate against an employee or job applicant because of their age, and they cannot retaliate against an employee who reports age discrimination. Employers are also prohibited from using age as a factor in employment decisions. This law applies to employers with 20 or more employees.

The ADA added extra protection for people with physical and mental disabilities to Title VII when it was passed in 1990. While pregnant women are protected under a different law, pregnancy and childbirth are also treated as temporary disabilities and protected by the ADA as well.

The ADA prohibits private employers, governments, recruiting agencies, and labor unions from discriminating against qualified candidates with disabilities in job application procedures, hiring, firing, advancement, compensation, job training, and other employment processes. Unlike other federal laws, there’s no enforcement agency for the ADA—it relies on individuals to file complaints. The ADA is only enforced for employers with 15 or more employees, but we recommend that all businesses comply.

Complying with the ADA includes providing reasonable accommodation (such as light-duty work) to support a disabled person, a current employee who becomes disabled, or a disabled job applicant. For example, if a vision-impaired candidate is a perfect fit for your customer service job and needs a $150 special keyboard to input caller data, that would constitute a reasonable accommodation.

In contrast, if a person in a wheelchair wanted to work for you, but your accounting office is located up three flights of stairs, then the construction of an elevator would not be a reasonable accommodation for your small business as it could be deemed a financial burden. In this scenario, allowing them to work from home would be considered a reasonable accommodation.

Cannabis is still technically illegal at the federal level. However, several states have legalized cannabis for recreational use, and even more for medical use. Businesses in these states need to be aware of state laws that may offer protections for cannabis users, especially medical users.

Some states provide protections for employees, under the STATES Act, and do not allow employers to take adverse employment actions against an employee who tests positive for cannabis—unless the use of cannabis would impair the employee’s job performance. If you hire employees in states with legal recreational or medical use marijuana, review your existing policies to ensure they align with state law.

The CCPA applies to employers that manage wage garnishments and limits the percentage amount of pay that can be garnished from a worker’s paycheck. If you have employees with garnishments from liens, student loans, or child support, you will want to make sure you are in compliance.

The ECPA governs the interception and disclosure of electronic communications. Employers cannot intercept or disclose their employees’ electronic communications without their consent unless an exception applies.

This does not mean, however, that employers cannot access employees’ emails without permission—they can. Employers are advised to have a clear electronic communication policy, putting all employees on notice that the computer system and electronic communication are the property of the employer and may be reviewed by the employer at any time.

The EPA requires that men and women be given equal pay for equal work at a business. It is the content of the job and the work responsibilities, not job titles, that determine whether jobs are roughly equal.

The EPPA prohibits most private employers from using lie detector tests during pre-employment screening and throughout the life of the employment relationship. Where polygraphs are allowed, they are subject to strict standards.

The FCRA allows an employer to obtain an applicant’s or employee’s consumer report for employment-related purposes if it (1) gives the applicant or employee a written disclosure notifying them that a consumer report may be obtained; and (2) obtains written authorization from that person. Some states have similar laws for pre-employment drug testing.

The FLSA is the overarching labor law that all businesses need to know. Its basic principle is to ensure employees are paid fairly. The law requires you to pay a minimum wage and overtime for certain employees—based on classifications referred to as exempt or nonexempt.

FLSA compliance issues—such as misclassifying salaried and hourly employees, failing to pay overtime, having inconsistent pay practices such as missing paydays, or paying men and women differently for the same job—can plague small businesses.

The FMLA is a federal labor law requiring employers to offer unpaid, job-protected leave to eligible employees for the birth or adoption of a child or the serious illness of the employee or a spouse, child, or parent.

FMLA requires you to protect the job of an employee who is out on leave for up to 12 weeks. It also allows up to 26 weeks for the same protection for an injured or ill military service person or for the family members caring for a military service person. Any employer who has 50 or more employees must provide FMLA. However, in some states, family leave laws are more comprehensive and may apply to employers with as few as five full-time workers and require paid leave.

Only employees who have a year of service are eligible for FMLA, and there’s typically a policy and an application process they need to use. For example, if your new hire of three months requests six weeks of FMLA for non-work related knee surgery, you can decline the leave request under the FMLA.

Learn how to develop an FMLA-compliant maternity leave policy, which is the most common situation you’ll likely face as a small employer. Keep in mind that new dads have many of the same FMLA rights, with some states now requiring paid paternity leave. We recommend having a paternity leave policy in place.

FICA requires you to withhold Social Security and Medicare taxes from your employees’ wages, and you must also contribute a matching amount of these taxes per employee. Your role as an employer is to collect the employee’s share of the tax from their earnings and provide quarterly payments to the IRS.

FICA works by taking a percentage of your employees’ income that you match and send to the government. For example, if Joel earns $2,000 a month, you’ll collect 6.2% of his income for Social Security and 1.45% for Medicare, match it, and send it in as a quarterly tax payment using IRS Form 941.

The most common mistakes made are missing quarterly tax payments, misclassifying employees as exempt, and calculating tax payment amounts incorrectly. All can result in penalties against your business, in addition to having to pay back pay with fines double that amount. FICA does not come into play when you hire independent contractors, such as self-employed freelance or gig workers.

It’s always been the employer’s responsibility to post federal labor law rights posters in a conspicuous location at work. Two additions to the federal posters include the PUMP for Nursing Mothers Act and the Pregnant Workers Fairness Act. If your compliance posters don’t have these notices, you could be out of compliance and face additional fines.

The fines for not posting certain federal laws increased in early 2024 and include:

• OSHA: $16,131 for each violation
• FMLA: $211 for each violation
• Employee Polygraph Protection Act: $25,597
• Know Your Rights: $680 for each violation

If all of your employees work remotely and typically receive company communication electronically, then you may post federal labor laws electronically. To satisfy this requirement, you should post on a company message board or email to the entire company, ensuring that every employee has received the posters. Note that in New York State, all labor law postings and workplace notices must be posted electronically.

If some of your employees are remote and others work in a physical office, you may post electronically or physically. We recommend doing both to ensure every employee views the posters.

The GDPR is a European Union (EU) law. A US-based company that offers goods or services to individuals in the EU or monitors the behavior of individuals in the EU may be subject to the GDPR. This includes collecting personal information, like names, email addresses, and IP addresses.

The GDPR requires companies to obtain explicit consent from individuals before collecting their personal data, appoint a Data Protection Officer, and adopt certain data privacy practices to ensure the security of personal data.

If your company processes the personal data of any EU citizen or a remote worker located in the EU, then you must comply. Retaining certain personal data of your employees, like names and addresses, will not require specific consent—but any additional personal data collection will. For all the data, you’ll need to comply with the storage requirements.

GINA protects employees from discrimination based on their genetic information. Employers cannot use genetic information to make employment decisions, such as hiring, firing, or promoting an employee. Companies also cannot request or require employees to undergo genetic testing. While employers cannot request genetic information from an applicant or employee, any genetic information an employer obtains must be kept confidential.

All employers with 15 or more workers must comply with GINA. Violations can result in costly fines and penalties.

INA ensures that your workers have the right to work in the US. That’s why you need to complete I-9 forms within three business days of onboarding your new employees. Verification is determined by reviewing a passport, driver’s license, and Social Security card—or other nonimmigrant visas. If you’re not using a payroll program to handle this for you, we highly recommend signing up for the E-Verify program, which is managed by the Department of Homeland Security.

Forgetting to complete employee I-9 forms within the three days allocated can result in problems down the line should your employees not actually be eligible to work in the US. Some employers also make the mistake of keeping I-9s in the employee’s personnel file, when they should instead be kept in a separate I-9 folder in case your business is audited.

The NLRA gives employees the right to collectively bargain with their employers and form or join a labor union. It also establishes guidelines for union organization and the bargaining process, as well as protections for employees to engage in union-related activities.

If employees decide to organize and form a union, small businesses must follow the NLRA rules and regulations for engaging in collective bargaining. This means complying with requirements for meeting and negotiating with union representatives.

Employers cannot take any action that may be considered retaliatory or discriminatory against employees attempting to organize or join a union. Specifically, employers cannot coerce or interfere with union activities. Violations can result in costly fines and penalties.

The Federal Trade Commission (FTC) issued a final rule (effective September 4, 2024) that bans non-compete agreements nationwide. The rule, in an effort to protect a worker’s right to find employment, states that existing non-competes for most workers will be unenforceable and that it is an unfair method of competition, and therefore a violation of Section 5 of the FTC Act.

If your business currently has non-compete agreements in place, it is important to verify its validity. There are a few exceptions:

• Senior Executives: If you have an existing non-compete agreement with a senior executive, it can remain in force until it expires. However, no new agreements can be put in place.
• Sale of Business: Any non-competes entered into as part of the sale of a business are still permissible.
• Prior Employees: Any non-competes in place and actionable prior to September 4, 2024, are still enforceable.

OSHA is both the act and the agency that governs workplace safety and health. This can range from bed bugs affecting hotel workers to printer fumes causing respiratory concerns.

OSHA regulates safety and health conditions in the workplace. All employers have a general duty under this act to provide a safe, clean, and hazard-free workplace—which may include establishing an emergency exit plan in an office and setting up an eye-wash station near where chemicals are stored. In addition, like most federal laws, employees have the right to file complaints without fear of retaliation.

If you have more than 10 employees, annual OSHA reporting is required, and any injuries should be reported annually between February and April. Therefore, it’s a good idea to conduct a monthly safety check on things like electrical outlets, computer wires, and other potential safety hazards.

For small businesses, most OSHA-related issues are caused by unsafe employee practices, such as employees standing on chairs, leaving desk heaters plugged in, or not wearing protective gear. Safety training can prevent these risks, and many insurance providers can help by offering training resources.

There is no federal pay transparency law. However, certain states and cities have implemented pay transparency laws. If you plan to hire employees in these states or cities, you’ll need to comply with these laws.

Pay transparency laws are designed to promote fairness, reduce pay disparities, and encourage open discussions about compensation in the workplace. These laws require employers to disclose information about employee salaries and other compensation, either in a job posting or during the interview process.

Related, employers cannot prohibit employees from discussing their own wages. If you have such a policy, eliminate it immediately. The National Labor Relations Board (NLRB) specifically states that employees have a right to discuss their own wages at work.

PDA prohibits discrimination against employees due to pregnancy, childbirth, or related medical conditions. Employers cannot discriminate against an employee or applicant because they are pregnant or have medical conditions related to pregnancy.

Companies must provide the same treatment to pregnant employees as to other employees with similar limitations, abilities, or inabilities to work. For example, employers must provide reasonable accommodations to pregnant employees, like modified work duties or a temporary leave of absence.

Employers also cannot take adverse employment actions, like demotion or termination, due to an employee’s pregnancy or related medical condition. Employers with at least 15 employees must comply with this law and violations may result in fines, penalties, and employee lawsuits.

The PUMP Act gives additional protections for nursing mothers at work. Nursing mothers are entitled to break time to express breast milk for up to one year after their child’s birth. Employers must provide a private location that is not a restroom.

Employers with fewer than 50 employees must comply. An employee cannot receive a reduction in pay, benefits, or any other adverse employment action for utilizing this right. When an employer learns of an employee’s pregnancy, they must provide them notice of their rights under the PUMP Act.

The Speak Out Act is a recent law that became effective in 2023. It prohibits employers from imposing mandatory arbitration agreements on employees in cases of workplace harassment and discrimination. Employers cannot require employees to sign arbitration agreements that waive their rights to litigate harassment or discrimination claims in court.

The law also makes non-disclosure and non-disparagement clauses unenforceable as they relate to allegations of sexual assault and harassment. The key to note here is that the law only prohibits these agreements if entered into before the dispute arises. In practice, this means that once an allegation is made, a dispute has arisen, and any agreement entered after that point, would not be valid.

Title VII prohibits discrimination in employment and hiring practices. The current list of protected classes includes race, color, sex, creed or religion, national origin or ancestry, genetic information, age, veteran status, citizenship, and physical or mental disabilities.

All businesses, regardless of size, should comply with anti-discrimination as a best practice. Title VII has expanded greatly over the years to be more inclusive of all Americans and their right to employment.

Any business with 15 or more full-time employees must comply with Title VII. Many states’ versions of this law also include gender identity, financial status, and sexual orientation, and a few states require that annual training be provided to all employees. It’s best to check the anti-discrimination laws in your state as they’re likely to be more inclusive.

To prevent hiring bias, consider training managers on how to avoid discrimination and use structured interviews in your recruitment process. Training, including sexual harassment prevention, can help your team focus on work-related traits and help you create an inclusive workforce, free of discrimination.

USERRA is a federal labor law from 1994 that protects military workers’ jobs. It establishes the length of time that a person may be absent from work for military duty, such as active duty and guard duty, while retaining reemployment rights. This law can protect someone for up to five years.

WARN helps ensure advance notice in cases of qualified plant closings and mass layoffs. The law states that if you are a business with 100 or more employees, you must provide advance notice (minimum 60 days) to employees before a plant closing or mass layoff.

The Whistleblower Protection Act protects employees who report suspected violations of law, fraud, or other misconduct from retaliation by their employer. Companies cannot retaliate against an employee who reports illegal activity or unethical behavior in the workplace. Retaliation could include firing, demoting, or otherwise harming an employee who has reported misconduct.

Employees who experience retaliation can file a complaint with the DOL. Businesses may face legal and financial consequences not only for illegal acts but also for retaliating against an employee who has reported misconduct.

The ACA requires most employers, including small businesses, to offer health insurance coverage to their employees. Any employer with at least 50 employees, or the full-time equivalent, must provide affordable health insurance coverage that meets certain minimum standards.

If you have a small business with under 50 employees you are not required to provide benefits. However, if you do, then you may be eligible for tax credits at a rate of up to 50% of the costs you pay for your employees’ premiums (35% for non-profits).

COBRA is the law that requires the option for continuation of health insurance for employees who have been fired or laid off for any reason from a business. Only businesses that offer employee benefits need to be concerned with COBRA. If you provide medical insurance and have 20 or more employees, you must also comply with COBRA, and some states, like California, offer extended COBRA benefits.

When an employee is terminated and about to lose their employer-sponsored healthcare coverage, COBRA kicks in to provide them continued health insurance coverage they can pay for themselves.

ERISA provides rules for employers offering pension, retirement, or welfare benefit plans for their employees, such as a 401(k). The law regulates qualified versus unqualified retirement plans, the conditions behind them, when you can make pre-tax payments, and more.

If you provide a 401(k) or other type of retirement plan, including an HSA, you will need to comply with ERISA regardless of your company size or contribution amount.

HIPAA is a health insurance and medical privacy law that protects employees’ privacy regarding any health information. Generally, this rule applies to hospitals, medical offices, and pharmacies, and does not apply to the general employer. However, if you provide benefits, you need to comply with HIPAA, no matter the size of your employee base. In addition, if an employee discloses personal medical information to you or your managers, it’s important you safeguard that private information.

It often requires you to train workers who handle sensitive employee data. HIPAA’s rules cover everything, from medical information privacy to the coverage you need to provide, as well as the timeframe you need to provide it in, if you offer health insurance.

Make sure your personnel files and medical insurance information are password-protected or kept in a locked cabinet. Train managers to keep employees’ personal information private. Even something as simple as a manager publicly discussing information shared in a doctor’s note can put your business at risk of a HIPAA violation.

The MHPAEA seeks to ensure equal mental health coverage as physical health coverage under insurance plans. Health insurance plans cannot impose more restrictive limitations on mental health and substance abuse disorder benefits than they do on medical benefits. Small businesses must comply with this law if they offer a group health plan that includes mental health coverage.

1. The right to a safe and healthy workplace: Workers have the right to protection from hazards that can cause injury or illness in the workplace. Employers are responsible for providing a safe work environment and ensuring that workers have proper training and equipment to perform their jobs safely.
2. The right to be treated fairly: Workers have the right to be treated fairly and with respect in the workplace, regardless of their race, gender, age, religion, sexual orientation, or any other status that may be protected under federal or state law. Employers are prohibited from discriminating against employees on the basis of these protected statuses.
3. The right to form or join a union: Workers have the right to form or join a union to collectively bargain with their employer for better wages, benefits, and working conditions. This right is protected under the National Labor Relations Act.

Most US businesses must follow OSHA regulations. Some of the key regulations to follow include maintaining workplace safety and recordkeeping. Some things to note include:

• Developing and implementing workplace safety programs and policies
• Providing employees with the necessary safety equipment and training
• Regularly inspecting the workplace to identify and correct any potential hazard
• Maintaining accurate records of workplace injuries and illnesses, and reporting them to OSHA as necessary
• Complying with OSHA’s standards for specific industries or hazards

Reasonable accommodations are changes or adjustments made by employers to accommodate employees or applicants with disabilities, including:

• Making physical changes to the workplace to ensure accessibility, such as installing ramps or elevators for an employee in a wheelchair.
• Providing specialized equipment, like a computer screen reader or hearing aids
• Adjusting work schedules or providing additional breaks to accommodate medical treatments
• Changing job tasks or responsibilities to better suit the employee’s abilities