State vs. Federal Laws for Employment Disputes

Federal employment law establishes minimum requirements and guidelines for employee rights and workplace disputes. For example, federal law sets a minimum hourly wage that applies across the entire nation. Employers in all states must comply with federal law related to employment and their practices in their workplaces, including minimum wage rules.

State laws must be in accordance with these federal laws, or they may be more generous to employees, e.g., establishing a state minimum wage that is higher than the federal minimum wage. Many states adopt some version of existing federal statutes as their state employment laws. Others may modify federal law to fit the needs of their particular population or their political priorities. Generally, state laws provide greater protection than federal laws.

What Are Some Examples of Differences Between State Versus Federal Employment Claims?

As noted above, one common example of the differences between state and federal employment laws concerns the minimum wage. Federal law sets the national standard for the minimum wage. States are allowed to set minimum wage rates that are higher than the federal minimum wage rate but cannot go lower.

Other areas of difference between state and federal employment laws include the following:

• Right to Work: Many states have statutes that prohibit employers from making employees pay union dues if they work in a unionized workplace. Approximately 22 states have these so-called “right-to-work” laws, but there is no federal right-to-work law;
• Occupational Safety and Health Act (OSHA): The federal “Occupational Safety and Health Act” (OSHA) sets standards for health and safety in workplaces. Many states have enacted their own versions of the OSHA, which establishes stricter standards than the federal OSHA requirements. State standards cannot be more lax than federal safety standards;
• Labor Unions: State and federal laws may also differ with respect to labor unions and their interaction with employees in the workplace. At the federal level, the National Labor Relations Board regulated all aspects of labor unions, union organizing, and the interaction of employers and unions. States may have their own departments of labor that deal with union-related claims in the state;
• The Fair Labor Standards Act (FLSA): This federal act comprises laws that provide standards for many aspects of employment, but most importantly, rules regarding overtime and minimum wage rates. It also sets standards for keeping records of hours worked, wages, and youth employment for workers in both the private and public sectors. Again, states may set more stringent standards;
• The Employee Retirement Income Security Act (ERISA): This act regulates employer-provided pension plans and the fiduciary, disclosure, and reporting requirements for these plans. ERISA does not apply to all private employers and does not require companies to offer plans to workers. However, it does set standards for plans in the event employers do offer them.
• The Family Medical and Family Leave Act (FMLA): The FMLA requires employers with more than 50 employees to give workers as much as 12 weeks of unpaid leave for the birth or adoption of a child, the serious illness of the employee or their spouse, child, or parent, or emergencies related to a family member’s active military service.
  • The leave is job-protected, meaning that the employee has the right to return to the position they left to take their leave. The coverage may be extended for up to 26 weeks of unpaid leave during a 12-month period for an active service member who becomes seriously ill or is injured in the line of duty;
• Civil Rights Acts: There are several laws that ban discrimination on the basis of gender. Among them are Title VII of the Civil Rights Act of 1964, the Equal Pay Act of 1963, and the Civil Rights Act of 1991. Federal law protects workers who are discriminated against because of age, disability, genetic information, national origin, pregnancy, race or skin color, religion, or gender.
• Americans With Disabilities Act (ADA): The ADA makes it illegal for employers to discriminate against job applicants or employees based on disability. In addition, employers must make reasonable accommodations to enable disabled employees to perform the duties of their jobs;
• Consolidated Omnibus Budget Reconciliation Act (Cobra): COBRA gives workers whose employment is terminated the right to continue their health insurance coverage at their own expense;
• The Affordable Care Act – Nursing Mothers: Under the provisions of the ACA, employers must provide nursing mothers with a private room for nursing-related activities and time for them;
• Child Labor Laws: These laws and regulations restrict the type of employment in which children may engage. They also regulate working hours for minors;
• Compensatory Time: These laws regulate when employers can offer paid time off instead of overtime pay for overtime hours worked. Again, federal law sets the standard, and some states may have
• Employee Drug Testing: Depending on a work’s industry, drug testing may be regulated by state and/or federal law;
• Employee or Independent Contractor: There are laws that determine whether a worker is considered an employee or an independent contractor under the law. An employee who is an independent contractor in one state may be an employee in another. The distinction affects earnings, taxes, and other terms and conditions of employment;
• Others: There are many other areas in which state and federal laws and rules affect the workplace and differ. If a person has a problem at work, it is always a good idea to consult an employment law attorney in order to learn whether a state or federal law may help them.

If I Have an Employment Dispute, Do I File With a State or Federal Agency?

Generally speaking, an employee who has a dispute with their employer that may involve both federal and state laws is required to file their dispute claim with the appropriate agency in their state first. If their state does not have its own state laws that apply or an agency that enforces them, then, of course, the employee would file their claim with the appropriate federal agency first.

If a person submits a claim to the appropriate state agency, it conducts an investigation into the claim and may prescribe a possible remedy. In some cases, the state agency may also contact a federal employment agency or the U.S. Department of Labor if it believes that action is required at the federal level.

Each state has a different name for its employment or labor agency or department. For example, in Texas, there is the Texas Workforce Commission (TWC); in California, there is the Department of Fair Employment and Housing (DFEH).

Maryland has a Department of Labor, and Michigan has a Department of Labor and Economic Opportunity. Florida also has a Department of Labor. A person may want to direct their claim to a division of a labor department. All of these departments and commissions have websites where a person can find helpful information.

A person may also need to file their claim with a state agency before they can file a private lawsuit. This can also be true with respect to a federal agency. Federal law may require that a person file a claim with a federal agency first. The agency investigates and

Do I Need the Help of a Lawyer for My State or Federal Employment Laws?

Employment laws can often be complicated, both at the federal and state levels. In addition to legal complexities, there may be special procedures involved in prosecuting a claim. As noted above, both state and federal agencies might be involved.

If you need help with an employment dispute, you want to consult an experienced workplace lawyer in your area. LegalMatch.com can connect you to a lawyer who can tell you how federal laws work and how your state’s laws may also apply to your case. Your lawyer can provide you with advice and guide you through the process of getting the best possible resolution of your claim.