Employment Laws
IA&B closely monitors employment law and provides not only what the law changes are, but how to address them within your agency. This area provides a summary of major federal employment laws with links to government websites for further detailed information. The laws are arranged by compliance levels based on number of employees.
| Act & Website Resource | Requirements | Coverage | Enforcement Agency | Regulatory Forms |
| Consumer Credit Protection Act of 1969 | Regulates the garnishment of employee wages and protects employees from being discharged due to its debt | All employers | Wage & Hour Division (WHD) of US Dept of Labor | |
| Employee Polygraph Protection Act of 1988 (EPPA) | Prohibits employers, with certain exemptions, using lie detector tests either for pre-employment screening or during the course of employment | Most private employers (All IA&B Members) | Wage & Hour Division (WHD) of US Dept of Labor | |
| Employee Retirement Income Security Act of 1974 (ERISA) | Establishes minimum standards for employee participation, funding and reporting information of employer sponsored retirement, health and welfare plans | Employers with established retirement, health and welfare plans for the benefit of employees | Internal Revenue Service and Employee Benefits Security Administration (EBSA) of the US Dept of Labor | |
| Equal Pay Act of 1963 (EPA) | Requires that men and women performing equal jobs in same establishment receive equal pay | Employers engaged in interstate commerce | Equal Employment Opportunity Commission (EEOC) | |
| Fair and Accurate Credit Transactions Act of 2003 (FACTA) | Further enhances FCRA protection of personal information, its use, access and accuracy and limits use and sharing of medical information | All employers | Federal Trade Commission (FTC) | |
| Fair Credit Reporting Act of 1970 (FCRA), amended May 22, 2009 | Prohibits obtaining a credit report on an applicant or employee without prior written notification to and authorization by the applicant or employee | All employers | Federal Trade Commission (FTC) | |
| Fair Labor Standards Act of 1938 (FLSA), amended Dec. 1, 2016 |
Requires employers to pay covered employees at least federal minimum wage and overtime pay for hours worked at one and one-half the regular rate. Note that states can have a higher minimum wage: |
Most employers (All IA&B Members) | Wage & Hour Division (WHD) of US Dept of Labor | |
| Genetic Information Non-Discrimination Act of 2008 (GINA) | Prohibits discrimination on the basis of genetic information with respect to health insurance and employment | All employers | Equal Employment Opportunity Commission (EEOC) | |
| Immigration Reform and Control Act of 1986 (IRCA) | Amends INA. Prohibits employers from hiring illegal aliens. Prohibits employer with 4 to 17 employees from discriminating on the basis of national origin & prohibits citizenship discrimination | All employers | Equal Employment Opportunity Commission (EEOC) | Form I-9 |
| Jury System Improvements Act of 1978 (U.S. Code, Title 28, s. 1875) | Prohibits employers from taking action against permanent employees for performing jury duty in any court in the US | All employers | Judicial System. Employers who violate the Act may be sued. | |
| Mental Health Parity Act of 1996 (MHPA) | Health plans may not impose lifetime or annual dollar limits different from other medical/surgical benefits | Employers with established health plans that include mental health coverage. Excludes substance abuse or chemical dependency | Employee Benefits Security Administration (EBSA) of the US Dept of Labor | |
| Newborns’ & Mothers’ Health Protection Act of 1996 (NMHP) | Requires plans that offer maternity coverage to pay for at least a 48 hours hospital stay following child birth (96 hours stay for cesarean section) | Employers with established Group health plans beginning on or after January 1, 1998 | Employee Benefits Security Administration (EBSA) of the US Dept of Labor | |
| Occupational Safety and Health Act of 1970 (OSHA) | The employer “shall furnish … a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” | All employers; NOTE: Insurance industry is generally exempted from recordkeeping requirements, unless notified in writing by OSHA, Bureau of Labor Statistics or other agency | Occupational Safety and Health Administration (OSHA) of US Dept of Labor | Form 300, Form 300A, Form 301 |
| Older Workers Benefit Protection Act of 1990 (OWBPA) | Amends ADEA to prohibit age discrimination in employee benefits. Establishes minimum standards for an employee’s voluntary waiver of an ADEA claim | Employers with sponsored benefit plans | Equal Employment Opportunity Commission (EEOC) | |
| Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) | Requires reporting of certain information of newly hired employees within 20 days to designated state agency | All employers | Administration for Children & Families of the US Dept of Health & Human Services | |
| Pregnancy Discrimination Act of 1978 (PDA) | Treats discrimination based on pregnancy-related conditions as illegal sex discrimination | All employers with employees covered by Title VII of the Civil Rights Act | Equal Employment Opportunity Commission (EEOC) | |
| Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) | Requires rehiring of employees who are absent for military service, with training and accommodations as needed | Employers that employee Veterans and members of reserve components | Veterans’ Employment and Training Service of the US Dept of Labor | |
| Violent Crime Control and Law Enforcement Act of 1994 (VCCLEA) | Prohibits individuals convicted of a felony for dishonesty or breach of trust or other related offense from employment in insurance industry without meeting specific conditions | Insurance industry employers | State Insurance Department | |
| Women’s Health & Cancer Rights Act of 1998 (WHCRA) | Protects individuals who elect breast reconstruction in connection with a mastectomy | Employers with group health plans and health insurance issuers providing benefits with respect to mastectomies must also cover certain post-mastectomy benefits | Employee Benefits Security Administration (EBSA) of the US Dept of Labor | |
| Health Insurance Portability & Accountability Act of 1996 (HIPAA) | Limits which types of conditions that can be subject to a pre-existing exclusion, sets a maximum pre-existing condition exclusion period, allows individuals to receive credit for recent prior health coverage and protects private health information | Employers who sponsor group health plans with 2 or more employees | Employee Benefits Security Administration (EBSA) of the US Dept of Labor |
15 or more employees
| Act & Website Resource | Requirements | Coverage | Enforcement Agency | Regulatory Forms |
| Americans with Disabilities Act of 1990 (ADA) | Prohibits discrimination against individuals with disabilities | Employers with 15 or more employees | Equal Employment Opportunity Commission (EEOC) | |
| Americans with Disabilities Amendments Act of 2008 (ADAAA) | Broadens definition of term disability to make it easier for an individual seeking protection under the ADA to establish that he or she has a disability with the meaning of the Act | Employers with 15 or more employees | Equal Employment Opportunity Commission (EEOC) | |
| Civil Rights Act of 1991 (CRA) | Amends Title VII, ADEA & ADA to allow jury trials & recovery of compensatory & punitive damages in intentional employment discrimination cases | Employers with 15 or more employees working 20 or more weeks per year, labor unions, employment agencies | Equal Employment Opportunity Commission (EEOC) | |
| Equal Employment Opportunity Act of 1972 (EEO) | Amends Civil Rights Act of 1964, and expands enforcement, lowers number of employees to 15 from 25 for employer to be covered by the Act. Forbids discrimination in hiring and employment and requires certain reporting of 100 or more employees | Employers with 15 or more employees working 20 or more weeks per year, labor unions, employment agencies | Equal Employment Opportunity Commission (EEOC) | EEO-1 (100 or more employees) |
| Title VII of Civil Rights Act of 1964 | Forbids discrimination based on race, color, religion, sex or national origin | Private employers with 15 or more employees working 20 or more weeks per year, labor unions, employment agencies | Equal Employment Opportunity Commission (EEOC) |
Less than 20 employees
| Act & Website Resource | Requirements | Coverage | Enforcement Agency | Regulatory Forms |
|
Delaware
Mini-COBRA: Provides temporary extension to workers and their families from losing
group health benefits under certain conditions.
|
Employers with 1-19 employees who sponsor an insured health plan. | Delaware Department of Insurance | Model notice for continuation | |
| Maryland Health Insurance Continuation: Provides health plan continuation to employers to small businesses | Insured group health plans sponsored by employers of less than 20 employees. | Maryland Insurance Administration | Model notice for continuation | |
| Pennsylvania Mini-COBRA: Effective July 10, 2009 and provides health plan continuation to small businesses | Insured group health plans sponsored by employers of 2 to 19 employees. | Pennsylvania Insurance Department | Model notice for continuation |
20 or more employees
| Act & Website Resource | Requirements | Coverage | Enforcement Agency | Regulatory Forms |
| Age Discrimination in Employment Act of 1967 (ADEA) amended 1986 | Prohibits discrimination in employment against individuals 40 years of age and older | Private employers with 20 or more employees, state and local governments (including school districts), employment agencies and labor organizations. | Equal Employment Opportunity Commission (EEOC) | |
| Consolidated Omnibus Reconciliation Act of 1985 (COBRA) | Provides temporary extension to workers and their families from losing group health benefits under certain conditions | Group health plans sponsored by employers of 20 or more employees | Employee Benefits Security Administration (EBSA) of the US Dept of Labor |
50 or more employees
| Act & Website Resource | Requirements | Coverage | Enforcement Agency | Regulatory Forms |
| Family Medical Leave Act of 1993 (FMLA) | Provides eligible employees up to 12 weeks of unpaid, job-protected leave for birth or adoption of a child or serious illness of employee or a spouse, child or parent | Employers of 50 or more employees | Wage & Hour Division (WHD) of US Dept of Labor | WH-381, WH-382, WH-380-E, WH-380-F, WH-384, WH-385,WH-385-V |
51 or more employees
| Act & Website Resource | Requirements | Coverage | Enforcement Agency |
| Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) | Requires group health plans’ and insurers’ financial requirements (co-pays, deductibles) and treatment limitations that apply to mental health or substance use disorder benefits are no more restrictive than medical/surgical benefits | Insured and self-insured health plans beginning on or after July 1, 2010 of employers with more than 50 employees. | Employee Benefits Security Administration (EBSA) of the US Dept of Labor |
NOTE: The following sites provide specific resources, regulations, forms and compliance information for employers who do business in Delaware, Maryland and Pennsylvania. Refer to these resources when developing policy or procedures related to employment and to assure compliance with changes in the law as they occur from time to time.
This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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