A lowdown on the strangest US employment laws you didn’t know existed.
The world of employment law can be a confusing maze to navigate. This is especially true when dealing with US employment laws that may differ from your home country. It can all add up to be a considerable HR task.
Are you an international employer looking to expand your business to the United States? Hiring a US-based employee can be tricky considering the many employment laws in the US. Some of these laws are very atypical. While strange, they are good to know for compliance… and trivia!
Navigating the complexities of these laws can be daunting. That’s why we will explore the five most bizarre employment laws in the US that you may not know. These laws highlight the unique and sometimes bizarre workplace regulations in certain states.
What are US Employment Laws?
US employment laws include regulations set by the local, state and federal government. These laws are enforced by various agencies and courts, depending on the level of law.
For example, the Department of Labor monitors and enforces federal minimum wage and hour laws, health and safety standards, and leave entitlements. On the other hand, the Equal Employment Opportunity Commission (EEOC) enforces anti-discrimination laws at every step of the employee journey from application to termination.
For more information about US employment laws, contact our team of experts at Borderless today. We can help you navigate everything from minimum wage requirements and workers’ rights, to sick leave, contacting the national labor relations board, and more.
Federal vs. State vs. Local US Employment Laws
Generally, there are different types of laws in the US. Federal laws, which are set by the federal government, apply to everyone living in the US, no matter which of the 50 states they live in.
Numerous federal employment laws exist, which require employers to abide by them legally, including:
- Wages and Fair Labor Standards Act (FLSA)
- Immigration and Nationality Act (INA)
- Occupational Safety and Health Act (OSH)
- Americans with Disabilities Act (ADA)
- Family and Medical Leave Act (FMLA)
- Employee Retirement Income Security Act (ERISA)
- National Labor Relations Act (NLRA)
However, US state and local employment laws only apply to people who live in a certain jurisdiction. Local areas include towns, countries, territories, and more. These laws typically govern workers’ injury compensation, local safety, paid rest periods, payday requirements, and more. This is where US employment laws governing certain areas can get a little atypical or strange, too!
If there are several laws about an employment issue, you may be wondering which law comes first. Generally, federal US employment laws precede state and local employment laws. State and local employment laws that are not covered or have no federal precedents are not subjected to federal law.
What is the Importance of US Employment Laws?
US employment laws are essential for protecting the rights of eligible employees and employers. These laws ensure that employees work in safe conditions, are not discriminated against, and receive fair compensation.
Employment laws are also in favor of employers’ rights. They resolve disputes and ensure that employees meet performance expectations. When both parties are protected, it is easier to achieve business success. This fosters trust and a fair and productive environment.
Strangest Employment Laws in the US
On that note, while US employment laws are essential, some laws may have you wondering why they exist. Here is a list of the five strangest and most unique employment laws in the US.
1. Kentucky: No ‘Smoking Status’ Discrimination
Before 1994, employers could hire or fire employees based on their smoking status. That means employers could turn away applicants who smoked. According to a study by Ohio State University, hiring smoking employees costs an estimated USD $6,000 more than non-smoking employees.
When smoking employees were hired, they were also subjected to different health plan contribution rates and other benefits. Until today, Kentucky employers do not have to contribute the same amount to employer-sponsored health care plans for smokers and non-smokers by law. While this is ongoing, they can also offer employees who smoke incentives to participate in smoking cessation programs as part of their company benefits.
Unfortunately, on average, smoking rates are highest among low-income populations – approximately 4.5 million people in Kentucky smoke, about a quarter of its population. These populations also tend to be unhealthy due to a lack of steady and stable employment when employers could hire and fire based on this habit. That is why some people find this practice discriminatory.
For many, this habit isn’t a choice; it’s a nicotine addiction. Kentucky has the worst cancer rates in the US, almost twice the national average! The state also allocates approximately $2 billion of its healthcare budget to smoking-related illnesses. While hiring based on smoker status may encourage Kentucky residents to quit smoking, applicants or employees should not be penalized for this habit.
There are better ways to cut smoking rates and encourage Kentucky residents to live healthier and smoke-free lifestyles. Consequently, smokers are a protected class under this state law, similar to other groups discriminated against in the past.
Indeed, employers hiring in Kentucky cannot discriminate against applicants or employees based on race, age, color, sex, religion, disability, or smoking status. 29 other states have similar smoker protection laws. Employers hiring in the US should keep this US employment law in mind.
2. Michigan: Body Size Anti-Discrimination Law
Michigan is the only US state with an employment law that bans body size discrimination. It is illegal for employers to discriminate based on height and weight. The state's civil rights law guarantees Michigan’s height and weight-protected classes.
While this bias is difficult to prove (which makes the law strange), this policy protects any applicant or employee who suspects adverse treatment based on height or weight. While the modern workplace has come a long way, women, in particular, are still discriminated against for roles based on their looks.
Some industries place more emphasis on looks than others – especially height and weight. According to the Rudd Center for Food Policy and Obesity, weight discrimination occurs as often as racial discrimination. There is often a lack of legal protection for this type of discrimination, but not in Michigan.
This law pushes employers to hire workers solely based on qualifications. Similar to nicotine addiction, obesity is also often chronic and not a choice. About 35% of Michigan adults were considered overweight, and another 32.5% were considered obese.
Hence, Michigan enacted the Elliott-Larsen Civil Rights Act in 1976. This law prohibited discrimination based on weight, height, race, disability, color, age, religion, sex, national origin, and marital status. There is an additional law that prohibits discrimination based on disability, too.
All Michigan employers must comply with this law. The only exceptions are employment by a parent, child, or spouse, and employers who can prove a “bona fide occupational qualification reasonably necessary to the normal operation of the business or enterprise,” which is typical in specific industries. Employers hiring in the US, especially in Michigan, should consider this US employment law.
3. California: No Polygraph Tests
California has been known for its obscure and employee-friendly employment laws. From making non-compete disclosure agreements void to ensuring free workplace drinking water, employers must be aware of California’s state employment laws when hiring in the US.
Indeed, in California, it’s illegal to enforce non-compete agreements. Employers cannot limit an employee’s future job prospects, no matter their industry. Furthermore, employers must ensure employees can access drinking water at the workplace or pay a USD $50 to $200 fine.
It’s also illegal for private companies to put applicants or employees through a polygraph test. That’s right – no lie detector tests allowed. If you are considering screening an applicant with a similar test, think again.
These tests cannot be a condition for continued employment as well. However, public agencies or places of employment are exempt from this. So, if you are hiring from the US, ensure that polygraph tests are not a part of the hiring process to comply with this US employment law!
4. Florida: “Guns-at-work” Laws
In Florida, employees are allowed to bring guns to work as long as they keep them in their car. Guns must be locked inside a private motor vehicle when not at work.
The state's "guns-at-work" law explains that employers cannot prohibit employees from possessing a legally owned firearm if the gun is locked inside a private motor vehicle when employees are customers and those invited on the premises. So, if you plan to establish an entity or open an office in Florida, keep this US employment law in mind!
5. Louisiana: Bone Marrow Donation Leave
The Pelican state has a few unique laws. Did you know sending a surprise pizza in Louisiana is illegal? Surprise pizzas are considered harassment. If you are considering treating your remote team in Louisiana, shelf this idea!
Louisiana also has its own anti-discrimination laws when it comes to hiring and employment. In 2022, Louisiana passed a law prohibiting hairstyle discrimination. This act ensures that employers do not discriminate against employees based on their choice of natural, cultural, and other hairstyles – namely, afros, dreadlocks, braids, curls, and more.
Employees are also entitled to many types of paid leave available in other states, such as jury duty and maternity leave. However, Louisiana has a unique and strange paid leave: bone marrow donation.
All employers with 20 or more employees in Louisiana must provide a 40-hour paid leave for bone marrow donations. Employers can ask for medical proof. If you are hiring in Louisiana, remember to offer bone marrow donation leave to be compliant with this US employment law.
Other US Employment Laws
Anti-Bankruptcy Discrimination
In January 2023, US household debt amounted to $17 trillion. The US debt culture is foreign to other countries, and federal employment laws surround it. These federal laws ensure that debtors do not miss out on job opportunities just because they have a bankruptcy on record.
The Bankruptcy Act prohibits terminating or discriminating against employees who have filed for bankruptcy or are associated with a bankruptcy debtor during employment. Applicants and employees do not need to disclose this information. This is to help debtors start anew.
However, the Act does not prohibit private employers from discriminating in hiring based on a prior bankruptcy. Employers can make this judgment by applicants who decline credit checks or have access to your credit report.
Long Baseball Hours
We don’t often consider how labor law applies to athletes. But, fun fact: Minor league baseball players do not get overtime pay. And neither do employees in the maple sap processing industry. Employees working outside who buy poultry, eggs, cream, or milk, in their raw or natural state are also exempt.
Under the Fair Labor Standards Act of 1938 (FLSA), eligible workers are entitled to overtime pay for the amount of time worked over 40 hours per week. The keyword is eligible workers. So, not everyone can earn overtime pay.
There are, in fact, several exemptions that apply to specific groups. Employers should understand the FLSA to a tee when hiring in the US. Minor league baseball players, for example, are exempt from the FLSA under the Save America’s Pastime Act, enacted by Congress.
The Right to Wear a Hijab
The right to wear a hijab depends on personal circumstances and state or local law. Religious freedom, which is enshrined in the American constitution, includes the right to wear religious garb such as headscarves or hijabs.
Unfortunately, many Muslim women face discrimination in hiring processes and employment when they wear a headscarf or hijab. According to Plaintiff Magazine, Muslims make up only two percent of America's workforce but filed nearly 25% of religious discrimination claims in 2009. Hence, employers need to remember that employers in the US must accommodate hijabs and headscarves reasonably.
Alabama: No Work Sundays
On Sundays, working in Sweet Home Alabama is illegal, with the exceptions highlighted in the Alabama Code. Although companies don’t necessarily expect employees to work on Sundays, especially in tech, it is illegal for employers to ask employees to work on a Sunday.
The 2003 Alabama Code highlights that employers can be fined USD $10 to $100 if they ask employees to work, even if they are paid. The exceptions to this law are:
- Community-related work (usually voluntary)
- Stores open on Sundays
- Operation of public or commercial transportation (railroads, airlines, steamboats, etc.)
- Manufacturing jobs
- Newsstands
- Restaurants, lunch stands, ice cream shops, or parlors
- Florists
- Automobile repair shops
- Motorcycle or automobile racing
So if you are hiring remotely in the land of Dixie, remember that Sunday is a mandated day off!
Remain Compliant with Employment Laws in the US with Borderless
These strange employment laws in the United States serve as reminders that workplace regulations can vary significantly from state to state.
While some laws may seem peculiar, they often have underlying reasons aimed at protecting employees' rights, safety, and well-being. Get up to speed on the latest US employment laws and remain compliant with Borderless Insights.
From minimum wage and job protected leave, to the Consumer Credit Protection Act, National Labor Relations Act, and everything in between, we can help independent contractors and employers alike navigate employment agreements and laws in the United States.
US employment law can get complicated quickly. That’s why working with an Employer of Record (EOR) is essential when expanding your business to the US, no matter which state. Let Borderless handle all the paperwork so you can expand to the US without headaches.
You won’t have to worry about making mistakes. Catch Borderless in action.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
