Whenever you work for or run a company, there are legal requirements that must be followed. Some of these take the form of federal laws, while others take the form of state laws. They all fall under the umbrella of labor and employment laws.
Labor laws are a set of rules that employers must abide by if they wish to avoid legal issues. These laws regulate compensation, such as how much an employer must pay their employee and when overtime is required. Labor laws also provide rules surrounding hiring and firing. and determine whether a working environment is considered safe for its employees. This is to ensure that no employees, no matter their industry or job, are exposed to unsafe working conditions or are put at risk for serious health problems.
Labor laws are very important because they provide a set of protections for employees and employers.
The purpose of the labor law is to govern all aspects of employment including:
These laws not only protect employees, but employers as well. Employees are required to follow rules, show up on time, adhere to company policy, and provide steady output.
There are many federal labor laws that dictate how employers must run a company. Federal laws typically refer to things like health and safety requirements, as well as maximum hours a person can work in a day or a week, and what the minimum wage is.
That said, most states have similar labor and employment laws, which may or may not trump federal laws in some scenarios. For example, if the federal law requires a 30-minute meal break but does not require compensation, but state law mandates a paid 30-minute meal break,then the break must happen in accordance with both federal and state laws, and the compensation must be paid because of state law.
Employees have many rights, such asthe right to a fair hiring process, which means not being subject to discrimination when applying for a job. Employees also have the right to file workers’ compensation grievances or reports about an unsafe work environment without being retaliated against.
In some states, employees can be mandated to work overtime, but compensation is also required from the employer. If your business offers benefits at the time of hiring or at any point during your contract, they are required to honor those benefits.s. Benefits might include healthcare, dental care, vacation days, sick days, retirement benefits, and more.
Some companies offer retirement programs as part of the benefits package, which means they must follow through with the terms of the compensation features, such as matching deposits into your retirement account. All companies are also required to pay into Social Security and are usually required to withhold taxes from your paycheck. Employees have the right to see a breakdown of their compensation, not just for a given work week, but for any extra benefits like health insurance or retirement.
There are many examples of a labor law, such as those that mandate equal pay, or requirements an employer must provide within the workplace so that employees are safe throughout their work day.
Labor laws determine how much an employer has to pay an employee when they work overtime. Overtime pay refers specifically to any hours worked above and beyond a given amount.
For example: Marco is a full-time employee. Marco works 40 hours per week. Any hours he works above that 40 hour mark qualifies for overtime pay, which is typically time and a half. Mark makes $10 per hour, so any hours over his 40 hour work week are compensated at $15 per hour. If Mark is a salaried employee, his salary gets divided by the average 40 hours per week, and that amount gets converted to an hourly rate to determine time and a half.
Employment laws regarding overtime pay also refer to compensation given for anything beyond a certain number of hours that are worked in one day. Using the example above, if Marco typically works eight hours per day, but 2 days per week he works 12 hours, he is entitled to overtime compensation for any hours worked beyond eight hours in one day. In this case, he would be entitled to four hours of compensation.
As mentioned, there are situations where laws or rules provide legal requirements for a job at a federal level and at a state level.
Minimum wage is a great example of when a federal law comes first followed by a state law. All states must provide compensation that meets the minimum wage requirement put forth by the federal government. However, states can decide to raise the state-level minimum wage, and all applicable employers must abide by state minimum wage laws rather than the federal law.
For example: Federal minimum wage is $7.25 per hour which means that all companies who are required to abide by that law cannot provide compensation less than $7.25 per hour. In California, the minimum wage is $14 per hour, which means all employers operating in the state of California who must abide by this law cannot provide compensation lower than $14 per hour.
In Wisconsin, an adult employee can work an unlimited number of hours in one day and per week. Wisconsin does not have a limit on how many hours you can work. A workweek refers to 168 hours or 7 days in a row.
Wisconsin state law does not require all employers to give their employees time off for holidays except in the case of federal holidays, nor does state law require compensation for individuals who work on a holiday. However, private employers can choose to offer compensation above and beyond the standard rate, but they are not legally required to do so.
Yes, a private employer can compel you to work on a holiday such as Christmas or New Year’s and only pay you the standard minimum wage if you work 8 hours. If you work more than 8 hours on a holiday, then the extra hours are subject to federal overtime.
The state minimum wage in Wisconsin is the same as the federal minimum wage. Employers are required to offer compensation of $7.25 per hour. However, in Wisconsin, employers must also offer overtime compensation at a rate of 1.5x the employee’s regular hourly wage if they work more than 40 hours in one week.
In Wisconsin, employers can allow their employees to work 7 days in a row but as the employee, you have to state in writing that you are voluntarily choosing to do so without being given the state-stipulated 24 consecutive hours off. Your employer can obtain this signed document from you at any time during the course of your employment.