Ch10. Labor Law Review — Key Numbers, Comparison Tables, and Common Pitfalls

Key Numbers at a Glance

Hours and pay (FLSA):
Standard workweek: 40 hours
Overtime threshold: hours over 40 in a workweek → 1.5× regular rate
Minimum wage (federal): $7.25/hour (many states higher)
Exempt salary threshold: $684/week ($35,568/year) for white-collar exemptions

Leave (FMLA):
FMLA entitlement: 12 weeks unpaid leave per year
Military caregiver leave: 26 weeks
Eligibility: 12 months employed + 1,250 hours in prior 12 months + 50 employees within 75 miles

Termination:
WARN Act notice: 60 calendar days
EEOC filing deadline: 180 days (300 days in deferral states)
NLRB ULP charge: 6 months
Unemployment insurance duration: up to 26 weeks (standard)

Workers' comp:
TTD wage replacement: ~66% of average weekly wage
No employee contribution to premium

Retirement (2024):
401(k) deferral limit: $23,000 ($30,500 if age 50+)
IRA contribution limit: $7,000 ($8,000 if age 50+)

Deadlines and Statutes of Limitations

Pay and wages:
FLSA back-pay statute of limitations: 2 years (3 years if willful)
Equal Pay Act: same as FLSA

Termination and discrimination:
EEOC charge deadline: 180 days / 300 days (deferral states)
Title VII, ADA, ADEA federal lawsuit: 90 days after Right to Sue letter
Section 1981 (race discrimination): 4 years
State discrimination claims: varies (1–4 years)

NLRA / union:
NLRB ULP charge: 6 months
Election petition bar (CBA): up to 3 years

Leave and benefits:
FMLA retaliation claim: 2 years (3 years if willful)
ERISA benefits claim: varies; plan document governs

Workers' compensation:
Notice to employer: typically 30–90 days after injury (state law)
Filing claim: typically 1–3 years (state law)

Comparison Table: Termination Types

┌──────────────────┬────────────────┬────────────────┬────────────────┐
│ Feature          │ Termination    │ Resignation    │ Contract End   │
├──────────────────┼────────────────┼────────────────┼────────────────┤
│ Initiating party │ Employer       │ Employee       │ Both / neither │
│ Severance pay    │ Not required   │ Not required   │ Not required   │
│ UI eligibility   │ Generally yes  │ Generally no   │ Generally yes  │
│ WARN Act notice  │ May be required│ Not required   │ May apply      │
│ Discrimination   │ Must be lawful │ Not applicable │ Renewal denial │
│ risk             │                │                │ can be unlawful│
└──────────────────┴────────────────┴────────────────┴────────────────┘

Common Pitfalls and Frequently Misunderstood Rules

① FLSA "exempt" status
   → Salary alone doesn't exempt an employee. Must satisfy BOTH
     the salary basis test AND the duties test.
   → Misclassifying non-exempt employees as exempt = back overtime liability.

② At-will ≠ fire for any reason
   → At-will employment does NOT allow termination for an unlawful reason
     (discrimination, retaliation, public policy violation).
   → "We're at-will" is not a defense to a Title VII or NLRA claim.

③ Regular rate for overtime purposes
   → Overtime must be calculated on the "regular rate," which includes
     non-discretionary bonuses, shift differentials, and commissions.
   → Paying time-and-a-half of base salary may understate the true overtime owed.

④ RIF doesn't require selecting most senior employees first
   → No federal seniority rule for RIFs.
   → However, selection criteria must not have disparate impact on
     protected classes (especially age 40+ under ADEA).

⑤ Workers' comp = exclusive remedy
   → Employee generally cannot sue the employer in tort for a work injury.
   → Exception: employer intentional conduct, or dual-capacity doctrine in some states.

⑥ Independent contractor label ≠ contractor status
   → Economic reality controls. Misclassified contractors are entitled
     to minimum wage, overtime, and other employee protections.

⑦ FMLA leave and termination
   → Firing an employee on FMLA leave is presumptively a retaliation violation.
   → Legitimate reasons for termination (e.g., RIF affecting the position)
     must be documented and applied consistently.

⑧ Overtime exemption for salaried employees
   → "Salaried" is NOT the same as "exempt."
   → A salaried employee can be entitled to overtime if duties don't qualify.

⑨ Unfair labor practices — employer only
   → Only employers commit §8(a) ULPs; only unions commit §8(b) ULPs.
   → Employees (individually) cannot commit ULPs.

⑩ CBA vs. individual contract
   → Individual contract may exceed CBA minimums but cannot go below.
   → A no-strike clause in the CBA binds individual union members.

Three Pillars of US Labor Law ★★★★★ : Minimum standards (FLSA) · collective rights (NLRA) · anti-discrimination (Title VII/ADA/ADEA). These three statutes form the foundation. Memory tip: Wages · Unions · Equal Treatment

WARN 60 days + EEOC 180/300 days ★★★★★ : WARN Act advance notice = 60 days. EEOC filing deadline = 180 days (300 in deferral states). Missing either deadline has severe consequences. Memory tip: WARN=60 days; EEOC=180/300 days

Annual Leave Maximum ★★★★★ : No federal minimum vacation requirement. FMLA provides 12 weeks of unpaid leave per year. Paid time off is entirely a matter of employer policy or CBA. Memory tip: Federal law = no paid vacation minimum; FMLA = 12 weeks unpaid

Practice Quiz (Comprehensive)

Q. A non-exempt employee earns $15/hour base pay plus a$ 200 non-discretionary weekly bonus. She works 45 hours in a week. What is her correct overtime pay?

Step 1 — Regular rate: ( $15 × 45) +$ 200 = $675 +$ 200 = $875 total straight-time pay ÷ 45 hours =$ 19.44/hr regular rate. Step 2 — Overtime premium: $19.44 × 0.5 × 5 overtime hours =$ 48.60 additional overtime premium owed (she already received straight-time pay for those hours in the base calculation). Total weekly pay = $875 +$ 48.60 = $923.60.

Q. An employee earning $600/week is classified as “exempt.” Is this classification valid?

No. The white-collar exemption requires a salary of at least $684/week (as of 2024). At$ 600/week, the employee fails the salary basis test and is non-exempt, regardless of job duties. The employer owes back overtime for any weeks the employee worked more than 40 hours.

Q. What must an employer do before terminating an employee who is currently on FMLA leave for a serious health condition?

The employer must document that the termination decision is based on legitimate, non-retaliatory business reasons (e.g., position eliminated in a genuine RIF, pre-existing performance documentation) and that the same decision would have been made regardless of the FMLA leave. Terminating during FMLA leave without this showing creates a strong presumption of retaliation under 29 U.S.C. §2615.