The Complexity of Employment Law: Understanding the Web of Regulations and How It Affects Your Business

Employment law is one of the most complex and intricate areas of legal compliance for businesses. Whether you’re a small startup or a large corporation, the regulations governing employment can feel like, and actually is, a tangled web of federal, state, and local laws—each with its own rules, exceptions, and requirements.

At Eckberg Lammers, P.C., we see firsthand how overwhelming it can be for businesses to navigate the numerous legal frameworks that impact the workplace. From wage and hour laws, anti-discrimination protections, and various protected leave laws, the stakes are high when it comes to making decisions about employees. A simple action—like firing an employee—can trigger a host of legal implications across multiple laws.

Below, we will explore how even a straightforward employment issue can implicate multiple laws, and why it’s critical for businesses to understand the complexity of employment law to avoid costly mistakes.


A Real-World Example: The Disciplinary Action Dilemma

Let’s look at a common workplace scenario: an employee has been consistently late to work and their manager decides to issue a formal warning, potentially leading to termination if the behavior doesn’t improve. On the surface, this may seem like a routine management decision. But in reality, this seemingly simple act of disciplining an employee could trigger several different laws, each with its own considerations.

Here’s a breakdown of the laws that could be implicated:

  1. Wage and Hour Laws (FLSA)

Under the Fair Labor Standards Act (FLSA), employers must ensure they’re classifying employees correctly as either exempt or non-exempt. If that employee is classified as exempt, while an employer may be able to require that employee to use paid leave to cover the absence, pay cannot be docked. If the employee is hourly, the FLSA may require accurate recordkeeping of the hours worked to avoid potential claims of wage theft.

  1. Anti-Discrimination Laws (Title VII, ADA, ADEA)

Employment actions, including disciplinary measures, can never be made based on discriminatory factors, such as race, gender, age, disability, or religion. Under Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA), as well as other federal, state, and local laws, employees are protected from discriminatory discipline or termination. If the employee who is being disciplined has a disability, for instance, the employer may need to consider whether the tardiness is related to a disability and if so, whether reasonable accommodations should be offered. In addition, if your company has other employees who have similarly been late that have not been disciplined, this could be strong support that this singular employee is being treated differently. If the person that you are looking to discipline is part of a protected class, but the individual who, under similar circumstances was not disciplined, your risk for liability based on allegations of discrimination increases.

  1. Family and Medical Leave Act (FMLA)

If the employee is taking leave under the Family and Medical Leave Act (FMLA), their tardiness could be protected. Under the FMLA, eligible employees are entitled to up to 12 weeks of unpaid leave for certain family or medical reasons, without the risk of losing their job. If the tardiness is tied to a medical issue or treatment related to an FMLA-covered condition, disciplining the employee for their attendance could result in a violation of their rights under the FMLA.

  1. State and Local Laws

Many states and cities have their own laws regarding employee protections, including paid sick leave, family leave, and anti-discrimination statutes. For example, in states like Minnesota, employers are required to comply with Earned Sick and Safe Time that extends additional protections to employees, including a more expansive definition of protected leaves, the inability to significantly question an employee, and likely inability to request documentation relating to the leave.

  1. Worker’s Compensation Laws

If the employee’s tardiness is related to an injury sustained at work, the employer must be careful not to retaliate under worker’s compensation laws. If the employee is recovering from a work-related injury or illness, disciplining them for tardiness could be seen as retaliatory behavior if there is requested and approved accommodation relating to the injury. In these cases, the employer must ensure that any action taken is strictly related to job performance and not to the worker’s compensation claim.

  1. Retaliation Protections

Beyond anti-discrimination laws, there are various other legal protections against retaliation. For instance, if the employee had previously complained about harassment or safety violations, disciplining them for tardiness could be seen as retaliatory, which is illegal under federal and state retaliation protections. Retaliation claims can arise in a wide range of situations, and employers must ensure that any disciplinary action is unrelated to an employee’s exercise of rights under these laws. For instance, if an employee claimed that last week they were being harassed by their manager, then this week that same manager looked to impose discipline, this creates significant legal risk for the company of retaliation. Similarly, if an employee has never received prior write up for tardiness, informs the employer of a safety concern at work, and then receives the write up, this could be seen as retaliation. Retaliation claims can occur even if they underlying report, such as harassment or safety violation, are found inaccurate.


Why This Matters: The Complex Web of Employment Law

As we can see from this one example, even the most routine employment decision—like disciplining an employee—can trigger a number of different legal requirements. It’s not just about issuing a warning or termination letter; each decision must be made with an understanding of the legal context in which it falls.

The complexity of employment law means that businesses must stay diligent in their compliance efforts. One misstep—whether it’s failing to accommodate an employee’s medical needs, inadvertently violating wage laws, or retaliating against someone for asserting their rights—can lead to costly lawsuits, penalties, and reputational harm.


The Importance of Legal Guidance- You are not Alone!

The complexity of employment law is undeniable, and this simple example only scratches the surface of how various regulations can intersect in everyday workplace situations. That’s where the value of legal counsel comes into play. Businesses that fail to recognize and understand these complexities risk legal exposure, reputational damage, and financial penalties. An experienced employment attorney can help guide businesses through the intricacies of employment law, ensuring that policies and practices are compliant with all applicable laws.

Remember, you are not alone. At Eckberg Lammers, P.C., we understand the challenges businesses face when navigating this complex legal landscape. Our goal is to help employers assess and balance risks effectively, providing clear, concise direction to ensure your organization stays compliant with employment laws. By partnering with us, you can focus on what you do best—running your business—while we help you mitigate the risks associated with potential missteps.