You’re building next week’s schedule, someone asks about overtime, and you’re frantically second-guessing whether you’ve got the right about the rules.
Labor laws probably aren’t the first thing that comes to mind when you think about what makes your organization successful. Even if they don’t show up day-to-day, they make a difference with employee schedules, hiring new staff, and handling time-off requests.
But, labor laws in the U.S. shift depending on where your people work and what their jobs look like.
State and local regulations often change with little warning, and what’s compliant in one location might pose a risk in another. Overlooking these laws carries heavy consequences, including fines, lawsuits, and a loss of employee trust.
Here, we’ll break down key labor laws in the U.S. and give you practical steps to keep your workplace compliant and running smoothly.
Federal labor laws in the U.S.
Think of federal labor laws in the U.S. as the floor. No matter where your employees work, these are the rules you start with before state or city laws add more. These rules guarantee basic rights, and employers need to meet them before considering stricter state or local laws.
Minimum wage laws
Minimum wage compliance isn’t as simple as following one rule. Employers need to check federal, state, and local rates, as they can vary. Here’s what to keep in mind:
- Federal law – The Fair Labor Standards Act (FLSA) sets the national baseline for minimum wage.
- State and local laws – Some areas set higher wages to reflect costs of living and economic needs, so tracking these differences matters.
The key rule of minimum wage laws: Employees must receive the highest rate that applies, whether it’s set locally, by the state, or federally. Overlooking these details can lead to claims for unpaid wages and steep penalties.
Family and Medical Leave Act (FMLA)
The Family and Medical Leave Act (FMLA) supports employees during significant life events by guaranteeing unpaid, job-protected leave for specific family situations. These may include: the birth or care of a newborn, a serious health condition that prevents the employee from working, or caring for a close family member who’s seriously ill.
FMLA comes up more often than you’d think, especially when employees need time away for something serious. Here are the basic eligibility rules:
☑ Work for your organization for at least 12 months
☑ Have put in at least 1,250 hours in the past year
☑ Be at a worksite with 50 or more employees within a 75-mile radius
While you or your team members are on FMLA leave, you’ll need to maintain health insurance under the same terms as active employment. Employees returning from leave are entitled to their original or equivalent position.
Besides meeting legal requirements, FMLA compliance is an opportunity for employers to build a more supportive workplace culture.
ADA and ADEA
The Americans with Disabilities Act (ADA) and Age Discrimination in Employment Act (ADEA) are labors laws that make sure people can do their jobs without being limited by barriers that have nothing to do with performance.
At their core, these age- and ability-focused labor laws in the U.S. protect employees from disability-based discrimination and require employers to provide reasonable accommodations when needed. If an employee needs a modified schedule after surgery, ADA specifically may apply.
| Americans with Disabilities Act (ADA) | Age Discrimination in Employment Act (ADEA) |
| The ADA bans discrimination based on disability and requires reasonable accommodations, such as schedule changes or workspace adjustments, unless they’d impose undue hardship on the organization. | The ADEA protects workers aged 40 and older from discrimination in hiring, promotions, benefits, or layoffs. Employers are expected to base decisions on merit, not age, and make sure policies don’t unfairly disadvantage older employees. |
Building a fair workplace means having open conversations, clear policies, and training so managers can address or prevent discrimination based on age or disability. It also involves ensuring the procedures for different types of leave management and accommodation policies are fair and accessible to all team members, regardless of their age or physical abilities.
Wage and hour restriction laws
Getting payroll right takes more than issuing paychecks. Employers need to meet wage and hour regulations at every level of government. Even a minor oversight can result in payroll errors, financial penalties, and legal issues.
Overtime laws
One of the most common sources of compliance errors starts with inaccuracies in overtime pay. Problems arise when employers aren’t clear on the details, so keep these key points in mind:
- FLSA rules – Covered nonexempt employees must receive 1.5 times their regular pay for hours worked over 40 in one week.
- Exempt vs. nonexempt – Exempt employees (usually salaried, meeting specific criteria) aren’t eligible for overtime. Nonexempt employees are. Misclassifying employees — intentionally or unintentionally — carries significant legal risk.
- State-specific rules – Certain states, such as California, also require daily overtime for hours worked beyond eight in a day. Employers in these states need systems for both daily and weekly tracking.
Regular reviews of employee classifications and accurate time tracking help prevent compliance issues.
State premium pay requirements
Some states require extra pay in certain situations to protect workers facing unusual schedules, like:
- Missed meal or rest breaks (in states such as California)
- A seventh consecutive day worked during a single workweek
- Split shifts that include long unpaid breaks
Premium pay rules can vary widely between states. Staying aware of what’s required where your employees work helps protect your organization from penalties and builds trust among your team.
Minor labor laws
Hiring young workers is a common strategy for filling seasonal shifts or entry-level roles, but it introduces specific regulations you need to navigate carefully. The FLSA at the federal level, alongside state laws, sets strict boundaries to protect the safety and education of minors.
When you bring minors on board, you need to manage three main areas of labor compliance:
- Minimum age requirements – For most non-agricultural jobs, the federal minimum age is 14. However, some states set higher standards or require work permits for employees under 18.
- Work hour restrictions – Laws limits when and how long minors can work. For example, 14- and 15-year-olds typically cannot work during school hours, past 7 p.m. during the school year, or more than 3 hours on a school day. Rules relax slightly for 16- and 17-year-olds but still often cap hours to prioritize school.
- Hazardous occupations – Federal law prohibits anyone under 18 from performing jobs deemed hazardous. This includes operating power-driven machinery (like forklifts or deli slicers), driving motor vehicles, roofing, and excavation work.
Of all the labor laws to keep an eye on, mistakes with child labor laws carry some of the steepest penalties. The Department of Labor permits penalties up to $15,138 for each child labor violation (increasing or decreasing based on severity). Errors with minor labor laws carry major financial and reputational risk, so maintaining disciplined scheduling practices and clear job descriptions is the easiest step to avoid them.
For a detailed breakdown of age groups, prohibited tasks, and state-level nuances, read our full guide on employment rules for minors.
Workplace conditions and safety laws
A safe and respectful workplace is essential for employee well-being and for smooth operations. The following labor laws in the U.S. set standards for scheduling, breaks, and job safety.
Fair Workweek laws
Predictive scheduling, or Fair Workweek laws, help provide hourly workers with more predictable schedules. These laws balance the need for business flexibility with the employee’s need for predictability. You’ll typically see requirements such as:
☑ Giving 7 to 14 days’ notice of work schedules
☑ Offering extra hours to current employees before bringing in new hires
☑ Compensating employees (predictability pay) for last-minute schedule changes
Retail and hospitality teams are usually the first to feel these rules, but more industries are starting to see them expand. As predictive scheduling laws become more popular, employers will need to tailor their scheduling solutions and practices to maintain compliance.
Meal and rest break laws
Meal and rest break requirements can vary widely, especially when your organization spans multiple states. Knowing how these rules work helps you build fair schedules and avoid compliance pitfalls.
Federal guidelines
Under the FLSA, employers aren’t required to provide meal or rest breaks for adult employees. If you choose to offer short breaks (typically five to 20 minutes), those must be paid.
Bona fide meal periods — usually 30 minutes or longer — can be unpaid, but only if the employee is relieved of all duties. Any work, like answering calls during lunch, makes the break compensable.
State-specific regulations
Many states have stricter standards than the federal baseline. Take California, Colorado, and New York, for example:
- California – Employees get a 30-minute unpaid meal break after five hours worked and a paid 10-minute rest break for every four hours. Missed breaks require premium pay.
- Colorado – Employees working more than five consecutive hours are entitled to a 30-minute meal break.
- New York – Meals must be at least 30 minutes for shifts over six hours that cover the midday period, with other requirements based on shift time and job type.
Always check local and state laws to confirm which rules apply. Go with the most protective standard for your employees.
For a breakdown on break and labor laws in the U.S. by state, check out our employee break laws article.
Compliance strategies for labor laws in the U.S.
Labor law compliance can feel overwhelming, especially when rules change faster than your processes do. But it doesn’t have to be a constant uphill battle. The right solutions are built to account for labor rules upfront, so it’s easier to spot issues early and avoid mistakes that turn into fines, rework, or frustrated employees.
Time tracking
A robust time tracking solution makes labor compliance much more manageable for your organization. By accurately recording every clock-in, break, and shift detail, these systems help you meet federal, state, and local requirements with less manual effort.
You’ll find it easier to handle complex overtime calculations, document meal and rest periods, and track accruals — all with reliable records you can count on if an audit or dispute arises.
The right time tracking software can:
☑ Record hours, breaks, and shift details down to the minute
☑ Prompt employees to explain missed or shortened breaks, supporting compliance documentation
☑ Flag overtime risks and wage violations before payroll is processed
☑ Store historical time data, making audits faster and less stressful
Employee scheduling
Scheduling software gives you a direct path to labor law compliance by automating the rules that protect both your organization and your team.
Instead of juggling last-minute changes or manually tracking shifts, you can use purpose-built features to apply state and local rules automatically — everything from Fair Workweek laws to mandatory rest periods.
The right employee scheduling software helps:
☑ Automate notifications and updates to meet advanced scheduling requirements
☑ Flag “clopening” shifts or inadequate rest periods between shifts
☑ Track meal and rest breaks alongside shift assignments for full compliance
☑ Adapt to different requirements across multiple states, cities, or locations
Leave management
Keeping up with leave laws is no small feat, especially if your team spans states or cities that set their own requirements.
Beyond federal protections like FMLA, you might also have to account for specialized leave and unique employee circumstances. A dedicated solution helps you make sense of these overlapping rules without letting anything slip through the cracks.
The right leave management system can help with:
☑ FMLA eligibility tracking
☑ State- and city-specific paid leave mandates
☑ Military, jury duty, or other types of leave
☑ Local accrual rates, carry-over rules, and caps
☑ Employee notice and documentation requirements
Next steps: maintain compliance with labor laws in the U.S.
Think of compliance as more than just a legal box to check or a hurdle to clear.
When you prioritize getting these processes right, the benefits follow a chain reaction beyond simple risk management to higher employee retention and satisfaction, lower turnover rates, and a much stronger reputation as a fair and reliable employer.
Making every team member feel valued and protected starts with understanding labor laws in the U.S. Then, when you know where your strengths and weaknesses fall, you can assess whether your employee scheduling and time tracking solutions are serving you or holding you back with labor law compliance.
TCP Software’s employee scheduling and time and attendance solutions have the flexibility and scalability to suit your business and your employees, now and as you grow.
From TimeClock Plus, which automates even the most complex payroll calculations and leave management requests, to Humanity Schedule for dynamic employee scheduling that saves you time and money, we have everything you need to meet your organization’s needs, no matter how unique. Plus, with Aladtec, we offer 24/7 public safety scheduling solutions for your hometown heroes.
Ready to learn how TCP Software takes the pain out of employee scheduling and time tracking? Speak with an expert today.
