Employment Regulations
According to XpertHR, state and federal legal requirements can address the same subject matter but set varying levels of obligation on the employer. For example, federal law may impose a higher minimum wage rate than state law. Or, state law may require employers to retain certain records for a longer time period than federal law. In general, employers must comply with both state and federal law, which basically means following the law that offers the greatest possible rights or benefits to the employee.
Often, there are areas that are not explicitly outlined in either federal or state law. In such a case the terms will depend more upon the employment contract. HR Daily Advisor comments that in these areas, employers must be careful to set out the terms clearly to avoid ‘implied agreements’. For example, having a probationary period may be an implied agreement that there will be an increased level of job security after the period ends.
allBusiness states that because laws regulating the employment relationship can come from different federal, state, or local sources, and it can be confusing to figure out which ones are applicable to employers. It depends on a range of factors such as where offices are located, how many people are employed, annual revenue, and the minimum number of employees specified in the particular employment law statute. Claims made and lawsuits (or arbitrations) brought by employees against their employers or former employers are among the most prevalent types in the USA—-maybe number one, according to GBD Law. Thus, before entering any employment contract with an employee, the employment law of the particular U.S. state(s) concerned should also be considered before any agreement should be drafted by a state lawyer.
Key Factors to Consider When Employing in United States:
There are several key areas to be aware of within the USA’s employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department. These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.
Contracts
Contracts are not required for employment, but may be offered to senior level employees or specialists with specific compensation requirements.
Employee Entitlements
Statutory Working Hours
40 hours
Specific Regulations about Overtime
Any hours exceeding 8 hours per workday are considered overtime. Overtime hours are paid at 1.5 times the normal pay rate.
Paid Public Holidays
For companies, paid public holidays are determined by the company policy. This is because employers are not required to pay employees for time that they have not worked according to the Fair Labor Standards Act (FLSA).
The following days are usually paid public holidays:
- New Year’s Day (1 January)
- Memorial Day (27 May)
- Easter
- Independence Day (4 July)
- Labor Day (2 September)
- Thanksgiving Day (28 November)
- Christmas Day (25 December)
It is not uncommon for companies to offer the following paid public holidays:
- Martin Luther King, Jr. Day (21 January)
- President’s Day (18 February)
- Emancipation Day (16 April; for Washington only)
- Good Friday
- Veterans’ Day (11 November)
- Columbus Day (14 October)
- Friday after Thanksgiving (29 November)
- Christmas Eve (24 December)
- New Year’s Eve (31 December)
Note: The above dates relate to the year 2019.
Public Holiday Pay Rate
By law, companies are not required to pay their employees overtime or holiday pay for working on a holiday, or to pay them at all. Companies may have policies that provide for holiday pay.
Disclosure and Confidentiality of Personal Information
Employees’ personal data is protected by data privacy laws. This includes data that may identify, or is linked to an identifiable living individual e.g. name or Social Security Number.
Federal statutes which protect personal data include the Health Insurance Portability and Accountability Act, protecting health-related information, the Genetic Information Nondiscrimination Act, protecting genetic information, and the Fair and Accurate Credit Transactions Act, protecting consumer credit information.
Most U.S. states have laws concerning data security and what to do in the case of a breach. Many of these laws impose an obligation to protect Social Security Numbers and other personal data against authorised use or disclosure. In Massachusetts, companies are required to adopt a written data security policy that meets certain standards to protect personal data collected from customers and employees.
Medical Leave
The Federal law for Sick Leave is the Family and Medical Leave Act (FMLA), and requires employers with 50 or more employees to provide up to 12 weeks of unpaid, job-protected leave for serious illness of the employee or a spouse, child or parent, to eligible employees.
For example, in Delaware, XpertHR reports that In Delaware, private employers are not required to provide employees with sick or vacation leave, either paid or unpaid. However, while Delaware law does not currently require employers to provide a state family and medical leave, employers with 50 or more employees will likely be required to adhere to the federal FMLA
Annual Leave Accrual Entitlement
According to HR site, BLR, In Delaware, the law does not require private sector employers to provide employees with vacations, paid or unpaid, However, if employers “promise” vacation terms, they are legally bound to provide it as promised. Employers are free to devise their own system for vacation accrual. Most employers offer employees some form of vacation leave. The standard annual leave in the USA is two-weeks (10 work days), plus national holidays. Longer leave may be given to long-term employees or senior management.
Maternity Leave in United States
According to the US Department of Labor the Federal law stipulates that an employer may not discriminate against an employee over pregnancy-related conditions. The employer must treat her the same as any other temporarily disabled employee. An employer also may not have a rule that prohibits an employee from returning to work for a predetermined length of time after childbirth. Employers must hold open the employee’s position during any pregnancy-related absence for the same length of time they would hold jobs open for employees on sick or disability leave. If an employer provides any benefits to workers on leave, the employer must provide the same benefits to those on leave for pregnancy-related conditions.
The Federal Family and Medical Leave Act (FMLA), requires employers with 50 or more employees to provide up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child.
For example, in Delaware, XpertHR reports that Delaware law requires accommodations for pregnant employees, which may include time off to recover from childbirth
Probation Period
There is not a clear preference towards laws on probation in federal laws, and a probation period would only apply if written into the employment contract.
In Delaware, there appears to be no specific rules on probation periods.
