Managing human resources in today’s regulatory environment is no easy feat for businesses. Employers must navigate a complicated web of federal, state, and local employment laws—many of which overlap, conflict, or are constantly changing.
The Complexity of Dual Systems: Federal vs. State and Local Laws
One of the primary challenges businesses face is managing the interplay between federal, state and local employment laws. Federal laws, such as the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Americans with Disabilities Act (ADA), set nationwide baselines for employment practices. However, many states and cities enact their own laws that either expand upon or contradict these standards.
-Minimum Wage Laws: Under the FLSA, the federal minimum wage is $7.25 per hour. However, many state and city governments have implemented their own minimum wage requirements that are far higher. California’s minimum wage, for instance, is $16.50 an hour statewide, yet the minimum wage in San Francisco is $18.67.
– Paid Sick Leave and Family Leave Requirements: While the federal Family and Medical Leave Act provides unpaid, job-protected leave for certain qualifying events, states like New York, New Jersey, Washington, and California have introduced their own paid leave requirements. For example, the Paid Family Leave programs in New York and New Jersey mandate that employers provide paid time off for employees caring for a seriously ill family member, bonding with a new child, or dealing with military family-related issues.
Conflicting Regulations Across Jurisdictions
Employers operating in multiple states are particularly vulnerable to compliance difficulties. Consider the following scenarios:
– Overtime Rules: The FLSA establishes that non-exempt employees must receive overtime pay (time-and-a-half) for hours worked beyond 40 in a workweek. However, California not only mandates overtime pay for hours over 40 per week but also requires employers to pay time-and-a-half for hours worked over eight in a single day and double-time for hours worked beyond 12 in a day.
– Anti-Discrimination Protections: At the federal level, Title VII of the Civil Rights Act prohibits discrimination on the basis of race, color, national origin, sex, and religion. Some state and local governments, however, offer broader protections. For example, many states and some cities explicitly prohibit discrimination based on sexual orientation, gender identity, and marital status, even though these categories are not universally covered under federal law.
What Businesses Can Do to Stay Compliant
1. Conduct Regular Audits: Employers should routinely audit workplace policies and practices to ensure they align with federal, state, and local requirements. This includes reviewing pay practices, employee classifications, and leave policies.
2. Seek Expert Guidance: Establishing a partnership with an HR consultant can ensure businesses receive expert guidance.
3. Standardize Record-Keeping: Maintaining detailed and accurate records—such as time sheets, payroll logs, and signed employee handbooks—can protect businesses in the event of an audit or lawsuit.
Employers that invest in proactive compliance strategies will not only reduce their legal risks but also foster healthier, more productive workplaces.
Marzano Human Resources Consulting works with businesses nationwide in developing risk mitigation strategies. Contact us for a no-cost initial consultation.