Federal Reserve Economic Data indicates that employed Americans work on average 1,700 hours per year. This figure, while fluctuating over time, has remained relatively stable since the 1980s. In the context of a 40-hour work week, 85.8 percent of males and 66.5 percent of females exceed this threshold weekly.
With Americans dedicating a significant portion of their lives to work, our quality of life is heavily influenced by employment status and workplace laws. Employment law encompasses all facets of the employer-employee relationship and workplace activities. It is important to note that federal, state, and local laws often vary, with federal restrictions taking precedence over state or local regulations.
Under federal anti-discrimination laws, employers are prohibited from taking adverse actions such as not recruiting, not hiring, terminating employment, failing to train, or failing to promote an employee on the basis of any federally protected characteristic. The Equal Employment Opportunity Commission (EEOC) is the federal agency that regulates workplace discrimination.
Federal law establishes basic protections for certain types of workers, including granting employees rights to ensure they get paid fairly for the amount of time they work. The Wage and Hour Division administers the Fair Labor Standards Act (FLSA), which applies to both full-time and part-time workers in the private and public sectors. The FLSA establishes standards for minimum wages, overtime pay, child labor, and employer recordkeeping. It does not limit an employee’s work hours but requires covered workers who work more than 40 hours in a week to be paid at least 1 1/2 times the regular rate of pay for hours worked in excess of 40 hours. Certain states mandate levels of overtime compensation that exceed the federal standard. For example, some states measure overtime not by the week, but by the day. Workers who work more than 8 hours in a day in those states are entitled to overtime. Almost all employees are entitled to overtime pay, but federal laws exempt farm workers, professional workers, lower-level supervisors under certain circumstances, and some employees in local businesses. Certain sections of the FLSA address workers in particular sectors, such as retail and service. For example, employee discounts provided by the employer do not count towards the minimum wage requirement. Employment contracts outline the rights and obligations of both employers and employees, which may not exist under federal or state law. Employers owe employees with whom they have an employment contract a duty of good faith and fair dealing. Written employment contracts specify the terms of the employer-employee relationship, including job duration, job duties, benefits, grounds for termination, limits on competition or sharing of information after employment ends, and dispute resolution methods. The only way to change the terms of a written employment contract once signed is to renegotiate the terms. While employers can require employees to sign an employment agreement, it is difficult for an employee to waive certain rights under federal statutes, such as Title VII, the Americans with Disabilities Act, and the Equal Pay Act. A valid employment agreement or severance agreement must meet three requirements: (1) offer consideration, such as a lump-sum payment or a percentage of the employee’s salary for waiving the right to sue for discrimination, (2) not require the employee to waive rights that will arise in the future, and (3) comply with state and federal laws.A waiver in a severance agreement signed when an employee leaves will be found valid if an employee knowingly and voluntarily consented to the waiver.
Many employees today are employed at will, that is, without an employment contract. At-will employees may quit or be fired at any time for any reason (except in violation of discrimination laws) or for no reason at all. Last reviewed October 2024
