US Employment Law Reference Guide

US Employment Law
Plain English

The federal laws that apply to most US employers — explained plainly, with official government links. Employment law in the United States is a combination of federal minimums and state laws that frequently set higher standards. Always check your state in addition to the federal rules below. This page covers informational reference only — not legal advice.

Jump to: FLSA EEOC / Anti-Discrimination I-9 / Work Authorization FMLA ADA At-Will Employment State Law
⚠️ Federal Law Is the Floor — Your State Sets the Real Rules

Federal employment law sets minimum standards. Every state can — and most do — go further. The laws below apply nationwide, but your state obligations may be significantly higher. Always check your state's Department of Labor website in addition to federal requirements.

Minimum WageFederal floor: $7.25/hr. 30+ states are higher. California: $16.90. New York: $16.50. Washington: $17.13. Always pay the higher of federal or state.
Paid LeaveNo federal paid leave requirement. California, New York, New Jersey, Washington, and others mandate paid family and medical leave through state programs.
Non-CompetesCalifornia bans them entirely. Minnesota, North Dakota, and Oklahoma have near-total bans. Most other states enforce them with varying restrictions on scope and duration.
Final PayWhen employment ends, final paycheck timing varies by state — from same day (California) to next regular payday (most states). Check your state law.
Discrimination ProtectionsMany states protect additional characteristics beyond federal law — sexual orientation, gender identity, and others are covered in many states regardless of federal status.
FMLA / LeaveFederal FMLA applies at 50+ employees. Many states have their own family leave laws at lower thresholds — some apply from employee one.
Wages and Hours
Fair Labor Standards Act (FLSA)
Federal minimum wage, overtime pay, recordkeeping, and child labor standards — enacted 1938, enforced by the Department of Labor Wage and Hour Division
Most US employers with $500k+ revenue or interstate commerce

The FLSA sets the federal minimum wage ($7.25/hr — unchanged since 2009, though most states are higher), requires overtime pay at 1.5x the regular rate for hours over 40 per workweek for non-exempt employees, and governs child labor standards. Enforced by the DOL Wage and Hour Division with back pay, liquidated damages, and civil penalties.

What this means for your business
Pay your state minimum wage — it is almost always higher than federal. The most expensive FLSA mistake for small businesses is misclassifying employees as independent contractors or as exempt from overtime. The DOL's economic reality test — not a written agreement — determines whether someone is an employee. Before treating anyone as a 1099 contractor or salaried exempt, verify the classification holds up legally. Track hours worked for all non-exempt employees. Failure to do so makes defending wage claims almost impossible.
Exempt vs Non-Exempt — The Classification Everyone Gets Wrong
To be exempt from overtime, an employee must meet BOTH a salary threshold (currently $684/week federal minimum) AND a duties test — meaning their actual job functions are executive, administrative, or professional in nature. Job title does not determine exemption. Calling someone a "manager" does not make them exempt. When in doubt, classify as non-exempt and pay overtime — the cost of misclassification is always higher.
Anti-Discrimination
Title VII of the Civil Rights Act / EEOC
Prohibits employment discrimination based on race, color, religion, sex, and national origin — enforced by the Equal Employment Opportunity Commission
Employers with 15+ employees

Title VII prohibits discrimination in all aspects of employment — hiring, firing, pay, promotion, job assignments, and training — based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity per Bostock v. Clayton County, 2020), and national origin. The EEOC enforces Title VII and related laws including the ADEA (age, 40+, applies at 20 employees), ADA (disability, 15 employees), EPA (equal pay, all employers), and GINA (genetic information, 15 employees).

What this means for your business
Federal EEOC protections kick in at 15 employees — but your state law almost certainly applies from day one. In hiring: base all decisions on documented, job-related criteria. Never ask about age, marital status, children, pregnancy, disability, religion, or national origin in interviews. Document your selection process — if a decision is challenged, you need to show it was based on legitimate, nondiscriminatory reasons. A written equal opportunities statement in your job postings and employee handbook costs nothing and signals the right intent.
Work Authorization
Form I-9 — Employment Eligibility Verification
Immigration Reform and Control Act (IRCA) 1986 — mandatory work authorization verification for every new hire in the United States
All US employers — no exceptions for size

Every US employer must verify the identity and work authorization of every new employee using Form I-9 — regardless of citizenship status, company size, or industry. The form must be completed within 3 business days of the employee's first day of work. Civil fines for I-9 violations range from $281 to $2,789 per form for first offences (2024 adjusted figures); knowingly hiring unauthorized workers can result in criminal penalties. ICE conducts I-9 audits with no advance notice required.

What this means for your business
Complete I-9 for every new hire — US citizens included. Never selectively verify based on someone's appearance or accent; that is discrimination. Employees choose which acceptable documents to present from the USCIS List of Acceptable Documents — you cannot specify which ones. Retain completed I-9 forms for 3 years from hire date or 1 year after employment ends, whichever is later. Store separately from personnel files. E-Verify (the online federal system) is mandatory for federal contractors and in several states — check your state's requirements.
Leave Rights
Family and Medical Leave Act (FMLA)
Up to 12 weeks unpaid, job-protected leave per year for qualifying medical and family reasons — enforced by the Department of Labor
Employers with 50+ employees within 75 miles

The FMLA entitles eligible employees (12+ months tenure, 1,250+ hours worked in prior year) to up to 12 weeks of unpaid, job-protected leave per year for: the birth or adoption of a child; a serious health condition of the employee; caring for a spouse, child, or parent with a serious health condition; or qualifying military exigencies. Employers must maintain health benefits during leave and restore the employee to the same or equivalent position on return.

What this means for your business
If you have 50 or more employees, FMLA applies. Post the required DOL FMLA notice in your workplace. When an employee requests leave that might qualify, you must provide FMLA paperwork within 5 business days — even if they do not use the word "FMLA." Interfering with FMLA rights or retaliating against an employee for taking FMLA leave is an independent violation. Many states have their own family leave laws at lower thresholds — some apply from your first employee. Check your state.
Disability and Accommodation
Americans with Disabilities Act (ADA)
Prohibits disability discrimination and requires reasonable accommodations in all employment practices
Employers with 15+ employees

The ADA prohibits discrimination against qualified individuals with disabilities in all employment practices — hiring, firing, pay, promotion, and job assignments. Employers must provide reasonable accommodations that allow a qualified person with a disability to perform the essential functions of a job, unless doing so would cause undue hardship. The ADA also restricts when and how employers may make disability-related inquiries or require medical examinations.

What this means for your business
Never ask about a disability or medical condition before making a conditional job offer. When an employee requests an accommodation, engage in the "interactive process" — a documented, good-faith conversation about what accommodation is needed and what is feasible. Reasonable accommodations commonly include schedule modifications, remote work arrangements, assistive equipment, or restructuring non-essential duties. Denying a reasonable accommodation without exploring alternatives is the most common ADA violation for small businesses.
Termination
At-Will Employment Doctrine
Default employment relationship in 49 US states — and why it is not as simple as it sounds
All states except Montana (implied good-cause standard)

At-will employment means either party can end the employment relationship at any time, for any reason — or no reason — with no required notice period. However, there are significant statutory and common-law exceptions: you cannot terminate for a discriminatory reason (EEOC laws); in retaliation for protected activity (OSHA complaints, workers' comp claims, union activity, FMLA leave, whistleblowing); or in breach of an express or implied contract (including promises in offer letters, employee handbooks, or verbal statements).

What this means for your business
At-will does not mean lawsuit-free. Document performance issues, warnings, and disciplinary actions before terminating — even in at-will states. Check your employee handbook language: promises of progressive discipline, "just cause" termination language, or "permanent employment" language can create implied contracts that override at-will. Review handbook language with employment counsel before publishing. California, New York, Massachusetts, and Washington have particularly active plaintiffs' bars — if you operate in these states, documentation is especially important. Always confirm final paycheck timing requirements with your state before the employee's last day.
WARN Act — For Larger Layoffs
If you employ 100+ workers and are planning a mass layoff (50+ employees at a single site) or plant closure, the federal WARN Act requires 60 days' advance written notice to affected employees, state agencies, and local officials. Many states have their own mini-WARN Acts at lower thresholds. WARN Act violations can result in back pay and benefits for each day of violation — up to 60 days.
State-Level Resources
🗺️ Start With Your State Department of Labor

For many employment law questions — minimum wage, final pay, leave, non-competes — your state law is more relevant than federal law. The DOL maintains a directory of all state labor departments.

DOL: State Labor Department Directory State Minimum Wages SCORE — Free Business Mentoring
California (CA-DIR)Among the most employee-protective states in the US. State minimum wage, mandatory paid sick leave, strict non-compete ban, CCPA data rights, CFRA leave at 5+ employees. dir.ca.gov
New York (NYSDOL)State minimum wage higher than federal, paid family leave, strong anti-discrimination law covering more characteristics than federal, strict final pay rules. labor.ny.gov
Texas (TWC)At-will state with fewer state-level additions to federal law. Texas Workforce Commission handles unemployment, wage claims, and workplace discrimination. twc.texas.gov
Florida (FDEO)At-will state, right-to-work state. State minimum wage increases annually. Florida Commission on Human Relations handles state discrimination complaints. floridajobs.org
⚠️
For Informational Reference Only — Not Legal Advice
This page summarises federal employment law for general awareness. It does not constitute legal advice, and does not cover state law, local ordinances, or the specific circumstances of your business. Laws change — always verify at official government sources before acting.
Federal law is the floor. Your state almost certainly sets higher standards for minimum wage, leave, discrimination protections, final pay, and more. Always check your state's Department of Labor in addition to the federal rules above.
Employment law changes. Civil penalty amounts, salary thresholds, and enforcement priorities are updated regularly. Verify current figures at official government sources before relying on them in business decisions.
Get professional advice for your situation. Employment law is highly fact-specific. For specific compliance questions, employment disputes, or contract review — consult a qualified employment attorney. SCORE (score.org) offers free mentoring from experienced business advisors if you need a starting point.
Official resources: DOL.gov · EEOC.gov · USCIS I-9 · FMLA · State Labor Departments · SCORE Free Mentoring
All Tools About Employment Law Contact Privacy Terms
© 2026 Hiring Index Tools · Tools provided for informational purposes only · Terms of Use · Privacy Policy