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LEAB: Employment and Labor Law

LEAB · Work through your exam, one topic at a time.

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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.