Current Employment Laws and Penalties Employment Laws and Regulations Who is Affected? Summary Explanation Penalty FLSA Generally, businesses with 2 or more employees The Fair Labor Standards Act of 1938 requires employers to compensate employees a minimum hourly wage (prevailing wage rate). FLSA also specifies that employers must compensate eligible employees 1 1/2 times their wage for hours worked in excess of 40 hours (more stringent state laws may apply). Employees may be eligible for double back wages for a period of 2 years; 3 years for willful violations, plus attorney’s fees. Title VII Companies with 15 or more employees Title VII of the Civil Rights Act of 1967 prohibits discrimination in employment (hiring, firing, advancement & determining wages) on the basis of race, color, religion, sex, national origin or sexual orientation. All employees The 1972 Equal Employment Opportunity Act strengthens the Civil Rights Act of 1964 and provides for affirmative-action programs. Companies with 20 or more employees The Age Discrimination in Employment Act of 1967 prohibits discrimination, failure or refusal to hire or discharge against any individual with respect to compensation, terms, conditions or privileges or employment due to the individual's age. ADEA prohibits printing or publishing notices or advertisements for employment indicating preference, limitation, specification, or discrimination on the basis of age. Back pay, value of lost benefits, reinstatement and attorney’s fees for prevailing party. Companies with 20 or more employees COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1987, requires employers to offer same group health insurance benefits to employees upon termination of employment for up to 18 months, at the employee's expense. Coverage may be extended to an employee as a result of a "qualifying event". Examples of qualifying events include the death of an employee; employee becoming eligible for Medicare; divorce or legal separation; or change in child's dependent status under the plan due to age, marriage, or completion of schooling. Penalties for failure to comply may result in fines of $100 per day, per violation. Penalties may be charged to the employer or any person who is responsible for the plan which caused the noncompliance. ADA Companies with 15 or more employees The Americans with Disabilities Act of 1990, Title I & V, prohibits discrimination against persons with disabilities in employment. Employers are required to make "reasonable accommodations" for disabled persons who are qualified to work. Reasonable accommodations means an employer must make accommodations for disabled workers without causing undue hardship (financial) on the employer. Damages (compensatory and punitive) up to $300,000 in addition to hiring, reinstatement, promotion, back pay, benefits and attorney’s fees to the prevailing party. FMLA Companies with 50 or more employees (10 or more, for government contractors) The Family and Medical Leave Act of 1993 requires employers with at least 50 employees within a 75-mile radius to allow employees up to 12 weeks of unpaid, protected job leave in any 12-month period for childbirth or adoption, serious health condition of the employee or serious health condition of an employee's immediate family member (parent, spouse or child), active duty leave or service member family/caregiver leave. An employee may bring suit against an employer in State or Federal court for a violation of the Act to recover lost compensation, reinstatement or promotion and attorney’s fees. EEOA ADEA COBRA TRUSTED HR SOLUTIONS FOR “INSERT COMPANY NAME” Damages up to $300,000 including reinstatement, promotion, back pay, benefits, attorneys’ fees for the prevailing party. Did you know that the cost of a single EEOC claim can cost you two years in back wages, plus attorney’s fees? 4