State vs. Federal: Which Law Applies?

In our previous tips of the week, we have discussed how many labor and employment laws have multiple layers.  These layers are attributable to the different levels of government that have the authority and responsibility for passing laws that address the employment relationship.

Generally, federal laws are the floor, with state and local laws creating the ceiling.  When we use terms like “floor”, we are referring to baseline and basic laws that must be followed by all employers in all states.  State laws are often passed in states that have a different approach to the employment relationship and, generally, provide additional protections for employees based on the values and priorities of the state and its residents. 

Finally, local ordinances can be based – usually in large, major metropolitan areas – where the local government has determined that they need to provide additional protections or benefits for workers who are employed within the environs of the locality.  The most common example of a local ordinance is a higher minimum wage, which is typically driven by the higher cost of living in that locality. 

Over the last year or two, there have been a number of changes in the manner in which federal laws are interpreted or enforced by federal agencies.  Many of these changes can be attributed to executive orders issued under the current administration.  Employers have seen these changes particularly in the federal government’s approach to immigration, employment discrimination, union organizing, and wage and hour laws.  Changes have been made to reporting requirements, such as the annual EEOC reports.  There have been modifications to federal contract requirements that more closely adhere to the ideology and stated priorities of the existing administration.  In some cases, the changes that have been made by federal agencies or by executive order have been challenged in the courts and employers are often left with an unclear understanding of their obligations under existing federal laws. 

The purpose of this tip of the week is to assist employers as they deal with the uncertainties and changes that are occurring in labor and employment law on the federal level.  Given the current state of affairs, it is important for employers to remember that, with the exception of immigration law, the federal law is not the only source of law relating to the employment relationship.  Employers must also be cognizant of and compliant with the state and local laws that apply to their operations.  As noted, in most cases, state and local laws are more stringent than federal law, so compliance with those laws will likely mean compliance with the federal laws. 

The worker and employer relationship is highly regulated and human resources managers must ensure that they are fully informed and compliant with all laws that govern the employment relationship.  myHRcounsel can assist employers in ensuring that they are meeting their obligations under federal, state and local laws and regulations.