Ch10. US Labor Law — Comprehensive Review for Job Seekers and HR Professionals

Series Summary

Employment Contract (Ch1)

Coverage: FLSA covers employers engaged in interstate commerce; state laws extend coverage broadly
Employee status: economic reality test — control, profit/loss opportunity, permanency, skill, integration
Required contract terms: compensation, scheduled hours, leave entitlements, job duties, workplace policies
Fixed-term employees: repeated renewals may create an implied permanent employment relationship
Hierarchy: Federal law > State law > CBA > Employee handbook > Individual contract

Working Hours (Ch2)

Item	Standard
Standard workweek	40 hours
Overtime trigger	Over 40 hrs/week
Overtime rate	1.5× regular rate
Night/weekend premium	Set by CBA or state law
Weekly day off	Required by many state laws

Wages (Ch3)

Regular rate: includes all non-discretionary compensation; overtime = 1.5× regular rate
Average rate: total earnings ÷ total hours (used for multi-rate workweeks)
Four payment principles: legal currency, direct to employee, no unauthorized deductions, regular pay schedule
Minimum wage violation: back wages + equal liquidated damages (FLSA)

PTO and Family Leave (Ch4)

PTO: accrued PTO treated as earned wages in many states; “use it or lose it” prohibited in CA, CO, IL, NE, ND
FMLA: 12 weeks unpaid leave per year; 50+ employee / 12-month eligibility
Pregnancy leave: PDA / PWFA require equal treatment; state PFL programs pay 60–90% of wages
Parental leave: FMLA covers bonding leave; state PFL programs may provide paid benefits

Termination (Ch5)

At-will doctrine: termination for any non-illegal reason; exceptions for contracts, discrimination, public policy
Protected periods: FMLA leave, pregnancy disability, workers’ comp claim pending
WARN Act: 60 days’ advance notice for 100+ employee layoffs affecting 500+ employees
RIF requirements: genuine necessity · avoid layoff efforts · non-discriminatory criteria · advance notice
Wrongful discharge claim: EEOC charge (180/300 days) or civil lawsuit

Retirement Benefits (Ch6)

Eligibility: 1 year / 1,000 hours minimum service (typical)
Calculation: DC plan — contributions + match + returns; DB pension — years × accrual rate × final salary
Payment deadline: distributions available upon separation; early withdrawal (before 59½) = taxes + 10% penalty
DB vs. DC: DB = predictable; DC = portable
IRA rollover: defer taxes by rolling over distributions; periodic payments lower overall tax burden

Harassment and Sexual Harassment (Ch7)

Item	Workplace Harassment	Sexual Harassment
Law	Title VII (protected class)	Title VII (sex-based)
Three elements	Protected class + severe/pervasive + hostile environment	Sex-based conduct + severe/pervasive + hostile environment or quid pro quo
Filing agency	EEOC / state agency	EEOC / state agency

Labor Unions (Ch8)

Section 7 rights: organize, bargain collectively, engage in concerted activity
Mandatory bargaining subjects: wages, hours, and working conditions
CBA effect: normative and exclusive — individual contracts cannot undercut CBA terms
Protected strike: authorized by union · proper purpose · required notice · non-violent conduct
Five ULP categories: interference · domination · discrimination · retaliation · refusal to bargain

Workers’ comp compensability: arising out of and in the course of employment
UI eligibility: base-period wages + involuntary separation + able/available/seeking work
Contribution rates: Social Security 12.4% (split evenly); Medicare 2.9% (split evenly); workers’ comp = employer only

Common Exam and Interview Question Types

Type 1: Eligibility Conditions

“Which of the following employees does NOT qualify for FMLA leave?” → Must have 12 months of service, 1,250 hours in the prior 12 months, and work at a location with 50+ employees within 75 miles — these are the trap answers.

Type 2: Deadline Calculation

“An employee was discharged on March 1, 2025. What is the last day to file an EEOC charge (in a 300-day state)?” → 300 days from March 1, 2025 = December 26, 2025.

Type 3: Fact Pattern Analysis

“A supervisor repeatedly calls a female employee derogatory names in front of her team, and she is passed over for promotion after complaining. What claims might she have?” → Hostile work environment sexual harassment + retaliation under Title VII.

Type 4: Overtime Calculation

“An employee earns $20/hour and works 46 hours in one week. What is total compensation?”

Regular pay: 40 × $20 =$ 800. Overtime: 6 × ( $20 × 1.5) =$ 180. Total: $980.

Discussing Labor Law Knowledge in a Job Interview

“How would you ensure workers’ rights are protected in our organization?” → Maintain FLSA compliance, establish clear written workplace policies, prevent wage theft, promote FMLA and parental leave utilization.

“How would you handle a workplace conflict?” → Thomas-Kilmann Collaborative approach: identify both parties’ underlying interests → principled negotiation → documented resolution.

“What do you think about employer obligations under social insurance law?” → Social insurance is the foundation of a sustainable workforce. Fulfilling those obligations in good faith is the starting point for a healthy employment relationship.

Final Learning Checklist

I can calculate overtime at 1.5× the regular rate for a given workweek
I can distinguish regular rate from average rate and explain when each is used
I can explain the requirements for a just-cause termination in a unionized workplace
I can describe the FMLA leave eligibility and notice requirements
I can identify the three elements of unlawful workplace harassment
I can list the three UI eligibility requirements
I can state the EEOC charge-filing deadline (180/300 days)

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