US Labor Law Professional Exam — Part 1 Strategy: Core Labor Laws, Contracts & Benefits

Written Exam Passing Structure

The written portion of the labor law professional exam requires a passing score in every subject and a minimum overall average. Understanding the subject map is the starting point for any strategy.

---

Labor Law I: Five Core Statutes

Fair Labor Standards Act (FLSA) — The Foundation

The FLSA is the bedrock of individual employment law and the most heavily tested statute.

Hours and Overtime

Item	Standard
Standard work week	40 hours
Overtime threshold	Over 40 hours/week (1.5× regular rate)
Fluctuating workweek	Permissible if properly structured
Exempt employees	Executive, administrative, professional, outside sales
Highly compensated	$107,432/year threshold (DOL 2024)

Termination — Just Cause and Written Notice

Under the FLSA and related statutes, most US employees are at-will; however, retaliation for protected activity is strictly prohibited and constitutes wrongful termination.

• Protected activities: filing a wage complaint, OSHA report, EEOC charge, or union organizing
• Written documentation: employers are advised to provide written notice of termination reason
• WARN Act notice: 60-day advance written notice for mass layoffs (100+ employees)
• Exceptions to WARN: plant closing due to unforeseeable business circumstances, natural disaster

Calculating Back Pay

Back Pay = Regular Rate × Hours Worked (including overtime)

Regular Rate = Total Remuneration / Hours Worked in Workweek
(Non-discretionary bonuses must be included in the regular rate)

Back pay claims: employees may recover up to 2 years (3 years for willful violations); liquidated damages equal to back pay amount may also be awarded.

Paid Leave Accrual Benchmarks

Condition	Leave Entitlement
Under 1 year of service	Varies by employer policy (no federal mandate)
1+ years, FMLA-eligible	12 weeks unpaid FMLA leave
Serious health condition	FMLA leave with job protection

Minimum Wage Law

• Federal minimum wage: $7.25/hr (as of 2024); many states and cities are higher
• Coverage: virtually all employers engaged in interstate commerce
• Tip credit rules: employer may take tip credit up to $5.12/hr if employee earns enough in tips to reach minimum wage

Temporary and Contract Workers

Title VII / EEOC

• Prohibits discrimination in hiring, promotion, pay, assignment, and termination based on race, color, religion, sex, or national origin
• Sexual harassment prohibition: hostile work environment and quid pro quo (annual training recommended)
• Pregnancy leave: FMLA + state PFL laws; minimum 12 weeks unpaid under FMLA
• Parental leave: FMLA covers both parents; up to 12 weeks for birth, adoption, or foster placement

---

Labor Law II: Collective Labor Law Essentials

NLRA and Unfair Labor Practices (ULPs)

Section 7 of the NLRA guarantees workers the right to organize, join unions, bargain collectively, and engage in concerted activities.

Seven Major Employer ULPs

1. Interference, restraint, or coercion: threatening employees for union activity
2. Yellow-dog agreements: conditioning employment on promise not to join a union
3. Refusal to bargain: refusing to meet and confer in good faith on mandatory subjects
4. Domination or interference with union: company-controlled unions
5. Financial support of union: paying union operating expenses (limited exceptions)
6. Discrimination to discourage membership: adverse action tied to union status
7. Retaliation for NLRB proceedings: adverse action for filing or testifying in NLRB case

Lawful Strike Requirements

A strike is protected concerted activity under Section 7 if it meets all four requirements:

Requirement	Content
Participants	Employees (or represented workers)
Purpose	Wages, hours, or working conditions (not purely political)
Procedure	Proper notice; bargaining impasse or ULP basis
Conduct	No violence, sabotage, or illegal secondary boycott

---

Contract Law: Formation and Remedies

Five Core Themes in Contract Law

① Legal Capacity and Mutual Assent

Four defects that may void or make a contract voidable:

• Misrepresentation (innocent, negligent, or fraudulent): may be voidable
• Mutual mistake: both parties mistaken on a material fact → voidable
• Unilateral mistake + unconscionability: may be voidable in egregious cases
• Duress or undue influence: voidable by the coerced party

② Agency

• Actual authority: agent acts within granted authority → principal bound
• Apparent authority: third party reasonably believes authority exists → principal may be bound
• Ratification: principal approves unauthorized act after the fact → principal bound

③ Void vs. Voidable Contracts

Distinction	Void	Voidable
Legal effect	No legal effect from inception	Effective until avoided
Who may raise it	Anyone	Only the protected party
Retroactivity	Treated as never having existed	Avoided retroactively on election
Ratification	Impossible	Possible (waives right to avoid)

④ Statutes of Limitation

Claim type	Limitation Period
Written contract	4–6 years (varies by state)
FLSA back-pay claim	2 years (3 for willful)
EEOC charge deadline	180 days (300 days in states with deferral agencies)
ULP charge (NLRB)	6 months
Workers’ comp claim	1–2 years from injury or discovery

⑤ Time Computation

• Federal Rules: Day 0 is the event day; count from the next day; if deadline falls on weekend/holiday, extend to next business day

Contract Remedies

Three Types of Breach

1. Anticipatory repudiation: party declares in advance it will not perform → non-breaching party may sue immediately
2. Material breach: failure to perform a central obligation → non-breaching party may suspend performance and sue
3. Minor breach: partial or defective performance → damages but not full excuse of counter-performance

Creditor Remedies

• Judgment lien: creditor records judgment to create lien on debtor’s real property
• Fraudulent transfer avoidance: creditor may ask court to set aside transfers made to hinder or delay creditors
  • Elements: (1) transfer made with intent to hinder; (2) debtor insolvent at time; (3) transferee had knowledge

---

Benefits Law: Four-Program Comparison

---

Elective: Employment Relations vs. Labor Economics

---

12-Month Study Plan

---

Study Checklist

• FLSA — can calculate overtime pay and back pay for a sample scenario
• FLSA — memorized WARN Act 60-day notice rule and exceptions
• FLSA — can recite exempt-employee salary thresholds
• FLSA — understands annual leave accrual benchmarks (FMLA triggers)
• NLRA — can list all employer ULPs and explain each
• NLRA — can recite the four requirements for a protected strike
• Contract law — can distinguish void from voidable and explain misrepresentation, mistake, duress
• Contract law — knows three types of apparent authority (restatement §§ 159–166)
• Contract law — memorized limitation periods for key claim types
• Contract law — can explain creditor avoidance of fraudulent transfers
• Benefits law — memorized premium split for all four programs
• Benefits law — knows workers’ comp benefit categories (medical, TTD, PPD, death)
• Elective subject decided and study plan confirmed