Employment Law Definition
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FAQ
Employment law is a broad area encompassing all areas of the employer/employee relationship. Employment law consists of thousands of federal and state statutes, administrative regulations, and judicial decisions. Many employment laws (such as minimum wage regulations) were enacted as protective labor legislation.
Key Takeaways Terms of employment are the benefits and responsibilities that an employee agrees to when they accept a job. Terms may include things like salary, benefits, retirement, company policies, termination, and non-compete agreements.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.
The marketplace and the law hold the most sway in determining a company's conditions of employment. In the free market, employers who compete to hire employees from a limited talent pool must provide appealing conditions of employment to attract and retain them, such as a competitive compensation package.
The U.S. Department of Labor (DOL) administers and enforces most federal employment laws, including those covering wages and hours of work, safety and health standards, employee health and retirement benefits, and federal contracts.
