Five Pressing Employment Law Issues HR Professionals Should Know

Five Pressing Employment Law Issues HR Professionals Should Know

21 September, 2023

A law-informed HR department can help prevent discrimination; ensure lawful and ethical recruitment and promotion processes; communicate terms and conditions of employment; and protect against harassment. And you don’t have to be a lawyer to help facilitate a viable workplace — it starts with examining the legal relationship between employee rights and employer obligation. Understanding the complexities of this relationship amid constantly changing laws and regulations allows HR professionals to protect their company and its employees.

Having a firm understanding of pressing legal issues in the contemporary workplace can prepare HR professionals to effectively address problems down the line. In this article, we take a look at the current issues HR professionals are facing.

1. Anti-discrimination Law
2. Employee Rights
3. Wages and the Fair Labor Standards Act
4. Non-compete Agreements
5. State Laws

Anti-discrimination laws ensure employees aren’t discriminated against in the hiring process or workplace based on protected characteristics such as race, color, religion, sex, national origin, disability or age. Federal laws such as Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA) ensure that employees are treated fairly in the workplace. If an employee has filed a complaint stating they have experienced discrimination, HR is often the first to hear about it, which is when knowledge of the law becomes especially useful.

While these laws have been around for decades, discrimination continues to be a pervasive issue throughout the country. In an article from the Washington Post and the Center for Public Integrity, it was noted that there were over 1 million discrimination cases filed from 2010 to 2017 alone. HR professionals proficient in antidiscrimination laws can more actively protect their historically underrepresented employees. A legal education, such as a Master of Legal Studies, can enhance an HR practitioner’s knowledge and allow them to competently help both the employees they serve and their company.

Under the ADA, employers must provide reasonable accommodations to employees with disabilities. During the COVID-19 pandemic, many individuals with disabilities realized that remote work options (which were previously denied to them) were not only possible, but actually easy to accommodate for many organizations. In fact, a recent study by Economic Innovation Group found that the employment rate for people with disabilities did not simply reach the pre-pandemic level by mid-2022, but rose far past it to the highest rate in over a decade. Flexibility for employees has always been essential, and our new normal post-pandemic has only highlighted this. HR professionals must understand the intricacies of employee rights to properly assist with accommodation requests.

With the sheer variety of occupations available in a digital economy, there is bound to be a variety in compensation across the job market. Since 2009, there’s been a federal minimum wage of $7.25 per hour, but many states, counties and municipalities have their own minimum wage laws. HR professionals should know when and how these standards are changing. For example, in recent years, some state governments have proposed increases in minimum wage to better align with cost of living and regulations that would create high-quality work environments. Many states have recently raised their minimum wage at the start of 2023 including Massachusetts, Connecticut, Illinois and New York to name a few.

In addition, the classification of exempt versus non-exempt employees for the purposes of overtime is a thorny issue for HR professionals. Non-exempt workers are entitled to certain protections under the Fair Labor Standards Act (including overtime pay). On the other hand, exempt employees are paid a salary of at least $684 a week and typically work in an administrative, professional, executive, computer or outside sales role, and are therefore exempt from overtime pay. In March of 2023, Senator Sherrod Brown introduced the Restoring Overtime Pay Act of 2023, which would raise the minimum salary requirements for exempt status. However, the outcome of the bill is still pending.

It’s worthwhile for HR professionals to remain knowledgeable about the minimum wage laws at the local and federal level. Furthermore, they should have a clear understanding of the Fair Labor Standards Act or they may encounter major legal issues with pay discrepancy.

The Federal Trade Commission recently proposed a rule to ban non-compete clauses and block companies from limiting their employees’ ability to work for a competitor. The goal of the proposed rule is to rein in the power of large companies and raise wages for employees. Because workers aren’t restricted from leveraging job offers, companies would be encouraged to pay their workers more, giving them an incentive to stay in their current position. If this rule goes into effect, it will impact many U.S. industries.

Unsurprisingly, this has forced HR professionals to ideate on how they could best adapt to this amendment. In preparation for this possible rule change, many companies are looking at the non-compete agreements they currently hold to ensure that they couldn’t better protect their company with less burdensome contracts like customer non-solicitation or confidentiality agreements.

It may be too early to implement a detailed compliance plan, but it is never too soon to start understanding how this rule may affect your organization if pushed through. In an interview with the Society of Human Resources Management (SHRM), Michael Greco, regional managing partner of the Denver office at Fisher Phillips, stated, “…employers must get their trade secrets house in order. Identify your trade secrets, and make sure you have proper policies and procedures in place, such as allowing access only to those that need to know, conducting training and implementing technological controls.”

Payroll requirements like tax changes and worker compensation minimums can vary between states. In an article for SHRM, Michael Semes, an attorney with BakerHostetler in Philadelphia expounds on this, saying, “Employees working from home in a state different from the assigned office could subject the employer to sales tax, income tax, and, in some cases, local or city gross receipts taxes that they were not subject to before.”

Privacy and pay transparency are also hot button issues that several states have passed laws to enforce. For example, the California Privacy Rights Act (CPRA) that went into effect at the beginning of 2023 requires that employers inform workers who live in California about any personal information they collect and how that data is used.

While remote work has increased the pool of hireable professionals, it has also brought new compliance challenges for HR practitioners who must stay apprised of these changes in state laws. Conducting your own research is a great way to understand the intricacies of laws that affect your company and remote workers.

How to Prepare for Legal Issues in Human Resource Management With an MLS

The Master of Legal Studies (MLS) is a distinctive program for professionals who do not wish to practice law but would like to use the law as a means to achieve their goals in environments where legal knowledge is an asset. An MLS offers its students the chance to gain knowledge, build their resumé and network with industry practitioners and peers.

Northeastern University’s MLS offers a dedicated concentration for human resources professionals with coursework focused on anti-discrimination law, employee rights and employer obligations, and wages and benefits. Students study the rules governing organizations, including corporations, partnerships, governmental organizations and nonprofits with a focus on rights of workers to be free of discrimination in the workplace, the importance of workplace rules and policies governing the workplace.

About the Master of Legal Studies Program at Northeastern University

Gain a deeper understanding of the law and how it affects your industry with an online Master of Legal Studies from Northeastern University School of Law. A leading institution for experiential and interdisciplinary legal education, the law school received the #1 ranking for practical training from The National Jurist/preLaw.

In this program, you can earn your degree in less than two years as a part-time student. The curriculum offers courses in areas such as law and organizational management, data regulation, compliance, negotiation, advocacy and strategy.

Designed for non-lawyer professionals, the online MLS helps leaders in highly regulated industries gain the knowledge to excel in their careers. Choose a general course of study or select one of five concentration options:

• Business Law
• Health Law
• Human Resources Law
• Intellectual Property Law
• Public Law and Policy

Learn more about our online MLS program.