What Is Employment and Labor Law?

Employment law and labor law are related but distinct areas of law governing the relationship between employers and employees.

• Labor law is a subset of employment law focusing specifically on the interactions between employers, workers, and labor unions. Labor law topics include union membership, union dues, and collective bargaining agreements.
• Employment law covers a broader set of employment issues beyond labor union relations and collective bargaining. Employment law topics include wage and hour issues, hiring practices, workplace discrimination, sexual harassment, and retaliation.

The type of legal issue generally determines whether it falls under labor law or employment law. Similarly, the extent to which an attorney focuses their practice on labor union issues or employment issues generally determines whether they are an employment law attorney or labor law attorney. Attorneys might handle multiple topics within employment or labor law or specialize in a particular area, such as workplace discrimination.

Since both employment and labor law deal with the relationship between employers and employees, both areas of law have an employer and an employee focus. Attorneys tend to represent one side or the other. Whether you look at these areas of law from the employer’s or employee’s perspective, it’s essential to understand the relevant laws and regulations.

This article will cover some of the primary statutes and regulations in employment and labor law and help point to further legal resources. For legal advice about employment and labor law, contact a local labor and employment lawyer.

Labor Law

The National Labor Relations Act (NLRA) is the primary federal labor law that applies to labor and worker rights. The National Labor Relations Board (NLRB) regulates the NLRA. The NLRB is an independent agency and not part of the U.S. Department of Labor (DOL). The NLRA:

• Guarantees the right of employees to form or join labor unions
• Guarantees the right of employees to engage in collective bargaining and other activities, securing employee rights and benefits (including health care and protection from arbitrary termination)
• Guarantees employees the right to refuse to join a union or to resign from their union membership at any time

The NLRA secures workers’ right to unionize if they wish. However, it also generally prohibits unions from forcing employees to join as a condition of employment.

Membership is generally not required for union jobs, though some collective bargaining agreements include union security clauses that require employees who opt out of union membership to still pay dues. Employees typically have three dues-paying options:

• Pay regular dues as a full member
• Pay an agency fee that helps cover the cost of union activities but doesn’t give full membership
• Pay a reduced fee that excludes non-representational costs (typically union political activities or charitable giving)

The rationale for union security clauses is that unions are legally required to represent all employees regardless of union membership. But if only members contribute, this could strain union resources and collective bargaining.

The NLRA allows union security agreements. However, Section 14b of the NLRA also allows states to prohibit security agreements. Taking advantage of this provision, 27 “right-to-work” states have prohibited union security agreements. Under the 2018 U.S. Supreme Court decision Janus v. AFSCME, public-sector employees (such as federal employees working for government agencies) cannot be required to pay any union fees and must voluntarily opt in.

Employment Law

Every state has some form of at-will employment. The vast majority of private-sector employees have an at-will employment relationship with their employers. This means that employers can take adverse employment actions—such as firing or reducing pay or hours—at any time and for any reason (or no reason) at all. Similarly, employees can quit at any time.

There are some important exceptions to at-will employment:

• Employment contracts. For employees who work under an employment contract, the contract may give specific protections or procedures in adverse employment actions such as firing or pay reductions. If the employer violates the terms of the agreement, the employee may have a breach of contract claim.
• Unionized workplaces. Employees who are members of a union or work in a unionized workplace benefit from collective bargaining agreement protections from arbitrary termination, in addition to wage and benefits guarantees

Again, working under a contract or in a unionized workplace does not describe most private-sector employees in the United States. However, even for at-will employees who can generally be fired for any reason, there is an important exception. Employers cannot take action against an employee when it violates federal or state law.

The Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a federal law that sets basic requirements for both minimum wage and overtime pay:

• Minimum wage. Employers must pay employees the federal minimum wage (currently set at $7.25 per hour). If state or local minimum wage rates are higher, employers have to pay the higher minimum wage. The majority of states have a higher rate than the federal minimum.
• Overtime pay. Employers must pay employees 1.5 times their regular pay rate for every hour of overtime they work per week. Overtime is anything over 40 hours of work per workweek. The FLSA does not protect employees from having to work overtime. Still, employers must pay employees a higher rate if they do work overtime.

The FLSA also sets regulations on child labor, such as the basic minimum age for employment and working conditions for minors.

Who Does the FLSA Minimum Wage and Overtime Requirements Apply To?

The FLSA’s rules apply to “non-exempt employees.” As the name implies, these employees are not exempt from the FLSA’s minimum wage and overtime wage rules. Non-exempt employees get paid hourly instead of on a fixed salary. Examples include retail workers, contractors, and freelancers.

The FLSA’s requirements do not apply to exempt employees. Specific federal statutes exempt some professions, including:

• Drivers
• Mechanics
• Farmworkers
• Seasonal employees
• Commissioned sales employees

Executive, administrative, or professional employees are also exempt if they meet the following requirements:

• Paid on a salary basis
• As of January 1, 2025, compensation is at least $684 per workweek
• They perform managerial, non-manual administrative, or intellectual tasks

Worker Adjustment and Retraining Notification Act

The federal Worker Adjustment and Retraining Notification Act (WARN Act) requires employers to give employees a 60-day notice before a plant closing or layoff.

The 60-day notice requirement applies to:

• Companies with 100 or more employees
• The company’s closing or mass layoff will result in an employment loss (including 50 percent reductions in employee work hours for each month in a 6-month period)

Occupational Safety and Health Administration

Established by the federal Occupational Safety and Health Act of 1970, the Occupational Safety and Health Administration (OSHA) sets regulations ensuring safe working conditions and healthy working environments for employees. OSHA also provides training on workplace safety and enforces standards.

Employment Discrimination

Several federal laws prohibit employers from discriminating against job applicants or employees:

• Title VII of the Civil Rights Act of 1964. Prohibits employers with 15 or more employees from discriminating based on race, color, religion, sex (including gender identity and sexual orientation), and national origin. Sexual harassment is a form of sex discrimination. Title VII requires employers to make reasonable accommodations for employees in one of these categories.
• Americans with Disabilities Act (ADA). Prohibits employers from discriminating against individuals because of a disability. The ADA applies to private employers with 15 or more employees.
• Rehabilitation Act. Applies to government employers and federal contractors. Employers must make reasonable accommodations for employees with disabilities.
• Age Discrimination in Employment Act (ADEA). Prohibits employers with 20 or more employees from discriminating against applicants or employees who are over the age of 40.
• Equal Pay Act. Prohibits wage discrimination based on sex.
• Immigration Reform and Control Act of 1986 (IRCA). Prohibits employers from discriminating based on an individual’s citizenship or immigration status.

These federal anti-discrimination laws (except the Equal Pay Act and IRCA) require workers to exhaust all “administrative remedies” before bringing a lawsuit. Exhausting legal remedies means that before suing an employer for discrimination, individuals should file a claim with the U.S. Equal Employment Opportunity Commission (EEOC) or their state agency. However, some states allow workers to file discrimination lawsuits before waiting for EEOC investigations.

The EEOC will investigate complaints to identify possible discrimination. It can negotiate with the employer and employee to resolve the complaint, take legal action itself, or allow the employee to take legal action.

Retaliation and Whistleblowers

An employer cannot fire an employee to retaliate against them. When employers fire an employee for protected actions, the employee can file a wrongful termination claim. Retaliation can occur in several circumstances:

• Lodging a complaint. Employers may not fire employees for making a complaint about working conditions or illegal workplace activity (such as sexual harassment or unsafe working conditions).
• Whistleblowing. Employers may not fire an employee for acting in good faith as a whistleblower to expose the employer’s illegal activity.
• Workers’ compensation claim. Employers may not fire employees for filing a workers’ compensation claim for injuries or illness in the course of work.
• Sick leave. The Family and Medical Leave Act (FMLA) allows employees to take up to 12 weeks of unpaid leave per year to deal with serious medical conditions or sick family members. Many states have their own versions of FMLA that provide additional benefits. Employers may not fire employees for being absent when taking leave under the FMLA or state law.
• Violations of public policy. Employers may not fire employees for engaging in constitutionally or statutorily protected activities such as voting, jury duty, or military service.

ERISA and Employee Benefits

The Employee Retirement Income Security Act (ERISA) regulates most employer-established benefit plans, including pensions, retirement plans, and health insurance. ERISA sets minimum standards for notification, participation, and benefits coverage. ERISA does not require employers to offer benefit plans but if they do offer such plans, federal law provides minimum regulations.

State Laws on Labor and Employment

In addition to federal laws, many states have their own employment and labor laws that provide protections or regulations beyond the federal minimum. State and local laws might address:

• Wage laws
• Overtime
• Employment discrimination
• Workers’ compensation
• Medical leave
• Employee benefits
• Notice requirements for cutting hours or pay
• Rest breaks and other workplace health and safety matters
• Workplace privacy issues

Whether you are an employer or employee considering legal action, it is essential to understand your state’s employment and labor laws in addition to federal laws. Consult a local labor and employment lawyer to understand your local workplace laws.

Arbitration

In some situations, employers or employees might prefer to avoid a lawsuit to settle their problems. Arbitration is a type of alternative dispute resolution (ADR). Arbitration uses an impartial intermediary (such as a retired judge or attorney) chosen by both sides to hear arguments and make a binding decision on the issue. The parties agree to abide by the arbitrator’s decision. Because arbitration takes place outside the judicial process, it can save time and money and lead to good results for the parties.

To benefit from collective action in employment issues, California employment law attorney Eric Kingsley says that “the number one thing employees can do is not sign arbitration agreements” that put “arbitration on a one-to-one basis.” Kingsley explains that “in AT&T v. Concepcion (2011), the U.S. Supreme Court held that if employees sign an arbitration agreement, class actions can be arbitrated one-to-one. If you sign an arbitration agreement, it’s really going to be you against the employer, and you won’t get the benefit of any collective actions” for issues such as discrimination or retaliation.

FAQs for a Labor and Employment Law Attorney

Many attorneys provide free initial consultations to prospective clients. These free consultations allow the attorney to hear the facts of your case and for you to determine if the attorney meets your needs. The specific questions you should ask will depend on your situation and the particular legal issues you are dealing with. To see whether an attorney is a good fit, ask informed questions such as:

• What are your attorneys’ fees?
• What are your billing options?
• Do you focus on employment law or labor law?
• Do you have a particular area of expertise within these areas of law?
• Do you represent employers or employees?
• Given my situation, is a lawsuit my best course of action?
• What is the statute of limitations for my legal claims?
• What are the chances of success in a lawsuit or settlement?

Finding the Right Attorney for Your Needs

It is essential to approach the right type of attorney—someone who can give you legal help through your entire case. You can visit the Super Lawyers directory and use the search box to find a labor or employment lawyer based on your location:

• If you are a member of a union or dealing with union-related issues, consider looking for a Labor Law attorney.
• If you are an employer with employment law issues, consider looking for an Employment Law – Employers attorney
• If you are an employee with employment law issues, consider looking for an Employment Law – Employee attorney