State and federal wage

University Degree Business and Administrative studies

State and Federal Systems Paper

The following essay will address the differences and similarities between state and federal systems of government in their application of employment laws. Several examples of employment protections that are provided by state systems but not by the federal system will be also provided.

In order to understand why some federal laws differ from state laws we must first begin by defining the powers of our government. Federalism is the principle that divides the powers between governments and makes provisions for change within the various levels. The United States Constitution divides some powers between state and federal governments, designates which powers are to be shared, and also disallows some power to each level. The three types of power that are delegated to the federal government by the Constitution are defined as expressed, implied and inherent. The majority of federal laws that apply to employment and labor are inherent powers and are those which give the federal government power to carry out the U.S. Constitution. The powers which the Constitution provides to state governments are known as reserved powers. The 10th Amendment defines reserved powers as those not expressly delegated to the federal government or held by the people not prohibited to the states. (Texas Education Agency Social Studies Center http://www.tea.state.tx.us/ssc/teks_and_taas/teks/glossgov.htm#structure)

The federal government has implemented employment laws to equalize situations where it is apparent that the employer and employee do not share a fair or equitable level of rights. These laws apply to employers in every state and supersede any state statute pertaining to employer's rights. For example, the federal government has enacted the following laws to prevent discrimination by employers against employees:

Title VII of the Civil Rights Act of 1964 (Title VII), which prohibits employment discrimination based on race, color, religion, sex, or national origin;

the Equal Pay Act of 1963 (EPA), which protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination;

the Age Discrimination in Employment Act of 1967 (ADEA), which protects individuals who are 40 years of age or older;

Title I and Title V of the Americans with Disabilities Act of 1990 (ADA), which prohibit employment discrimination against qualified individuals with disabilities in the private sector, and in state and ...

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Title VII of the Civil Rights Act of 1964 (Title VII), which prohibits employment discrimination based on race, color, religion, sex, or national origin;

the Equal Pay Act of 1963 (EPA), which protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination;

the Age Discrimination in Employment Act of 1967 (ADEA), which protects individuals who are 40 years of age or older;

Sections 501 and 505 of the Rehabilitation Act of 1973, which prohibit discrimination against qualified individuals with disabilities who work in the federal government; and

the Civil Rights Act of 1991, which, among other things, provides monetary damages in cases of intentional employment discrimination.

(The U.S. Equal Opportunity Commission. http://www.eeoc.gov/abouteeo/overview_laws.html)

Laws involving employment discrimination are enforced by the U.S. Equal Opportunity Commission (EEOC). An employee wishing to file a discrimination claim against an employer may do so by filing a claim with the EEOC. However, EEOC protection is only available to employees who are employed by companies engaging in interstate commerce and that employ at least 15 workers for each working day covering 20 or more calendar weeks in the current or previous year. Power is shared in part by the state and federal government when the state has adopted a 706 agency to respond to federal EEOC complaints. If a 706 agency relationship exists within a particular state, a claimant must first submit the complaint to the 706 agency for attempted resolution and the EEOC defers its involvement for a period of 60 days after the complaint is filed.

An example of how state law can impact employment regulations can be found in the at-will employment doctrine. Each state is free to develop and enact laws governing its version of the doctrine. However, the federal government also allows for exceptions giving employees the ability to challenge at-will employment decisions based upon violation of public policy, breach of implied contract or breach of a covenant of good faith. An employee who is able to prove one of these three recognized exceptions will likely succeed in obtaining a ruling in their favor regardless of what the state statute governing at-will employment reads.

Another section of state employment law that differs from federal law is regulations governing overtime requirements. The states are also given the power to enact rules regarding employment that are occasionally more stringent than the federal requirement. Federal rules are enforced by the U.S. Department of Labor. The minimum wage requirements set forth by the Pennsylvania Minimum Wage Act are enforced by the Pennsylvania Department of Labor and Industry. Federal law (29 USCS § 218) and federal rules (29 C.F.R. 541.4) specifically state that federal law does not affect enforcement of state overtime requirements. Pennsylvania employers are subject to the rules contained in the Pennsylvania Minimum Wage Act (35 P.S. § 333.101 et seq.) and are obligated to comply with Pennsylvania's regulations even though they are more restrictive than the revised federal requirement. The United States Department of Labor issued new regulations governing overtime on August 23, 2004. Under these new regulations overtime requirements for administrative, executive, sales, computer and other professional positions were revised. For example, federal law allows an employer to restrict an employee's overtime wage if that employee earns in excess of $100,000 per year. Under Pennsylvania's Minimum Wage Act, no such restriction is applicable. Therefore, an employer would be obligated to provide overtime wages where applicable regardless of the amount earned by an employee.

Another difference between federal and Pennsylvania employment regulations lies in the rules requiring overtime for computer workers. Under federal rules, employers are not obligated to pay overtime to computer workers. However, Pennsylvania law states that computer workers must be paid overtime as long as there are no other exclusionary laws that apply. (Pennsylvania Department of Labor & Industry http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&q=214574)

The United States Department of Labor regulations also do not usurp state laws that offer employers more protection over employees. For example, under federal law employees must make at least $455 per week or approximately $23,660 per year in order to be exempt from overtime pay. However, in the state of California employees are given a higher salary cap with which to be eligible for this exemption. This exemption is equal to two times the minimum wage, or approximately $28,080 per year, a difference of $4,420. Also, federal law provides for a weekly overtime requirement where in the state of California employees are subject to a daily overtime requirement as well as a weekly overtime requirement. In California employers must pay time and a half to employees who have worked more than 8 hours in one day and double time for more than 12 hours worked in any single day. California law also requires employers to pay double time for any hours over 8 worked on the seventh consecutive day of a given workweek. (The Ison Lawgroup Workplace Law http://www.theisonlawgroup.com/?news%7C1047)

The differences between state and federal employment laws can have a serious impact on both employers and employees. As an employer, it is important to be familiar with the laws that govern employment in different states of operation. Employees should also be aware of how local laws may affect their rights when considering work in different states.

References

Texas Education Agency Social Studies Center. Retrieved from the World Wide

Web on May 6, 2005 at

http://www.tea.state.tx.us/ssc/teks_and_taas/teks/glossgov.htm#structure

The U.S. Equal Opportunity Commission. Retrieved from the World Wide

Web on May 6, 2005 at http://www.eeoc.gov/abouteeo/overview_laws.html

The Pennsylvania Department of Labor & Industry. Retrieved from the World Wide

Web on May 7, 2005 at

http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&q=214574

The Ison Lawgroup Workplace Law. Retrieved from the World Wide

Web on May 7, 2005 at http://www.theisonlawgroup.com/?news%7C1047