Both federal and state laws regulate employment practices in the workplace. Because federal and state laws can overlap, many employers are understandably confused about the difference between state and federal laws and which laws apply to their business.
- Congress has enacted the Fair Labor Standards Act, the Equal Pay Act, the Americans With Disabilities Act and other laws that govern workplace standards. Many states have adopted these Acts in their entirety or expanded upon these Acts with their own regulations.
- Federal law is generally applied in situations where the state law does not address the issue at stake, or has lesser standards. For example, if a state's minimum-wage rate is less than the federal rate, then the federal rate will apply to those workers within its scope.
. - Federal and state employment laws may differ on matters such as minimum wage, overtime rate and family and medical leave issues. Many states also have their own laws pertaining to discrimination in the employment and pre-employment process.
- When federal and state employment laws differ, employers are required to comply with the standard that is more favorable to the employee. An employer's failure to comply with applicable state and federal employment laws may open up the employer to lawsuits and result in economic and punitive damages.
- Employment laws differ from state to state. You should consult your state Department of Labor to determine which state and federal employment laws are applicable to your business.
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