Employment and Labor Law
What this domain tests
Employment and Labor Law tests the employment relationship, discrimination, wage-hour rules, and collective rights. Expect at-will limits, Title VII analysis, and worker classification.
Core rules and concepts
- At-will employment: Either party may end the relationship at any time, but not for illegal reasons. Exceptions: public policy, implied contract, covenant of good faith (limited states), and statutory retaliation.
- Title VII: Prohibits discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity under Bostock), and national origin. Disparate treatment requires intent; disparate impact requires a neutral policy with adverse effect and no job-related necessity.
- Harassment: Hostile work environment requires severe or pervasive conduct; quid pro quo requires a tangible employment action. Faragher-Ellerth defense requires reasonable care and no tangible action.
- ADA: Reasonable accommodation absent undue hardship. FMLA: 12 weeks unpaid for eligible employees (50 or more employees, 12 months, 1,250 hours).
- FLSA: Overtime at 1.5 times the regular rate beyond 40 hours; exempt duties test. NLRA Section 7 protects concerted activity, including non-union workers.
Worked example
A warehouse policy excludes applicants with lifting restrictions. A qualified applicant with a back impairment is rejected. Under the ADA, the applicant must show she can perform essential functions with or without reasonable accommodation. The employer must show the restriction is job-related and consistent with business necessity or that accommodation is an undue hardship. A blanket exclusion is likely unlawful; individualized assessment is required.
Traps that cost marks
- Saying at-will means any reason is lawful; retaliatory or discriminatory reasons are not.
- Confusing disparate impact with disparate treatment.
- Applying FMLA before the employee meets hours, service, or employer-size thresholds.
- Treating independent contractors as exempt from all laws; misclassification creates liability.