Supervisor Essentials

Performance Management and the Law 210

This class introduces some of the most influential federal employment laws affecting personnel management. In the U.S., relationships between employees, employers, and unions are governed by the Civil Rights Act of 1964, the National Labor Relations Act, the Occupational Safety and Health Act, the Fair Labor Standards Act, and many other laws. These laws establish requirements for safe and efficient workplaces, leave, pay, and other conditions. Federal laws impact all aspects of employment and can be supplemented by state or local laws and company policies.

After completing this class, learners should understand the basics of major federal employment laws, as well as related concerns like employment status. For anyone with direct reports, knowledge of federal employment law is critical for protecting their own job and their organization from legal risk and for treating their team with dignity and respect.

  • Difficulty Intermediate

  • Format Online

  • Number of Lessons 18

  • Language English

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Course Outline
  • Performance Management
  • Performance Management and the Law
  • Public- vs. Private-Sector Employment
  • Contract and Temporary Employment
  • Review: Background and Employment Types
  • Anti-Discrimination Laws
  • Leave and Attendance: FMLA
  • FMLA Exceptions and Additions
  • Leave and Attendance: USERRA
  • Review: Anti-Discrimination and Leave Laws
  • Wage and Hour Laws
  • Exempt vs. Non-Exempt Employees
  • Labor Relations: NLRA
  • Labor Relations: Collective Bargaining Agreements
  • Labor Relations: WARN
  • The Occupational Safety and Health Administration
  • OSHA Requirements and Rights
  • Review: Labor Relations and Safety Laws
Objectives
  • Describe performance management.
  • Describe the relationship between performance management and federal employment law.
  • Describe public- and private-sector employment.
  • Describe contract and temporary employment statuses.
  • List key federal anti-discrimination laws.
  • Describe FMLA.
  • Describe exceptions and additions to FMLA.
  • Describe USERRA.
  • Describe common wage and hour laws.
  • Contrast wage and hour laws for exempt and non-exempt employees.
  • Describe the NLRA.
  • Describe collective bargaining agreements.
  • Describe the WARN Act.
  • Describe OSHA.
  • List the employer requirements and employee rights established by OSHA.
Glossary
Vocabulary Term
Definition

accommodation

A modification or adjustment to a job, work environment, or workplace policy that enables someone with a disability or a religious belief to perform essential job functions, including adjusted schedules, assistive technology, and modified dress codes. Under the Americans with Disabilities Act (ADA) and Title VII of the Civil Rights Act, employers are legally required to provide such accommodations unless doing so imposes an "undue hardship" on business operations or puts the employee in danger.

Age Discrimination in Employment Act

ADEA. A U.S. federal law that prohibits discrimination against employees and applicants age 40 or older in hiring, promotion, termination, compensation, and other employment decisions, for eligible employers. The Age Discrimination in Employment Act prohibits age-based harassment, assumptions about ability, or forced retirement.

Americans with Disabilities Act

ADA. A U.S. federal law prohibiting discrimination against individuals with disabilities in all areas of public life, including employment. The Americans with Disabilities Act requires eligible employers to provide reasonable accommodations and prohibits decisions based on stereotypes or assumptions about disabilities.

apprenticeship

A structured program that combines on-the-job training with classroom instruction so an employee can learn a skilled trade. Apprenticeships typically allow employees to earn wages while gaining experience and/or certification.

at-will

An employment status that allows employees to resign or be terminated from their job at any time, for any legal reason, without advance notice. At-will employees work under the default employment arrangement in most U.S. states.

bargain

To negotiate terms and conditions of employment, such as wages, hours, and benefits. Bargaining is typically conducted collectively through worker representatives or unions.

blue-collar

Relating to manual labor or industry work. Blue-collar roles include most production-level employees in manufacturing, construction, and other industries or trades.

buy-in

An employee's agreement with and commitment to a company's goals, values, or initiatives. Buy-in reflects engagement and willingness to support organizational strategies and changes.

career-altering

Referring to events, decisions, or actions that have a significant impact on an employee's professional trajectory. Career-altering performance decisions include major promotions, demotions, terminations, or performance evaluations that affect future opportunities.

Centers for Disease Control and Prevention

CDC. A U.S. agency that develops and applies disease prevention and control, environmental health, and health promotion and education policies. The Centers for Disease Control and Prevention is part of the Department of Health and Human Services.

certification

An organization's requirements for employees who submit FMLA requests. In order for leave requests to be approved, certification requirements may include completing government forms or submitting documentation from a healthcare provider about relevant medical information, leave duration, and other considerations.

child labor

The employment of minors in work that is illegal, exploitative, or harmful to their health, education, or well-being. Child labor laws restrict the hours and types of jobs minors may perform.

citations

A legal order to appear before a judge or committee or to pay a fine. Citations are issued by OSHA for noncompliance with safety standards.

Civil Rights Act of 1964

CRA (1964). A landmark U.S. federal legislation that prohibits discrimination on the basis of race, color, religion, sex, national origin, and other traits in employment, education, and public accommodations. The Civil Rights Act of 1964 includes Title VII, which specifically addresses employment discrimination and established the Equal Employment Opportunity Commission (EEOC) to enforce the law.

civil service

Work within government agencies that are filled based on merit and competitive exams rather than political appointment. Civil service employment often provides job protections and benefits under civil service laws.

collective bargaining agreement

CBA. A legally-binding contract between an employer and a labor union that outlines wages, benefits, work rules, and other employment conditions. The collective bargaining agreement is negotiated on behalf of employees through the collective bargaining process.

color

Skin color, complexion, or tone. Color is a protected class under Title VII and may or may not be related to race or national origin.

concerted activity

An action taken by two or more employees to improve wages, working conditions, or workplace rights. Under U.S. law, many forms of concerted activity are protected, even if workers are not unionized.

confined space

An area that is large enough for a worker to enter but is not designed for continuous occupancy and that has a limited means of entry or exit. Confined spaces are potentially hazardous and safety requirements must be followed when entering them.

conflict

Any disagreement over tasks, responsibilities, priorities, or interpersonal issues. Conflicts can be constructive when moderated appropriately, but otherwise, they result in disrupted workflow, tension, and hostility.

constructive

Intended to improve performance or behavior. Constructive feedback focuses on specific actions, offers guidance, and is delivered in a positive, actionable manner.

contingent

Employment based on temporary, project-based, or flexible basis, without long-term guarantees. Contingent employees includes freelancers, contractors, and seasonal workers.

contract

A legally-binding work agreement that defines the terms of employment, including job duties, duration, pay, and benefits. A contract may cover union employees, independent contractors, temporary staff, apprentices, and other employees and can shape or limit performance management decisions.

cumulative service limit

The total amount of time an employee is absent from a civilian job due to military service. Cumulative service limits under USERRA determine an employee's eligibility for reemployment rights and are generally capped at five years.

Davis-Bacon Act

A U.S. federal law that requires contractors on federally-funded construction projects to pay employees prevailing wages and benefits. The Davis-Bacon Act protects local wage standards and prevents underpayment.

Department of Transportation

DOT. A department of the U.S. government concerned with transportation, including the movement of people and goods from one location to another. The Department of Transportation regulates how hazardous materials are transported.

disability

A physical or mental impairment that substantially limits one or more major life activities. Disabilities include conditions like mobility impairments, visual or hearing impairments, chronic illnesses, and mental health disorders.

discrimination

Treating someone unfairly based on race, gender, age, religion, disability, or other protected characteristics. Discrimination is prohibited under federal and state employment laws.

disputes

A disagreement between workers and employers over employment terms, conditions, or rights. Disputes may involve issues such as pay, scheduling, safety, or discipline.

downtime

A period when production equipment or operations are not functioning, resulting in lost productivity. Downtime can be caused by maintenance, equipment failure, personnel issues, and other disruptions.

duties test

A check to determine whether a role is exempt from overtime pay under the FLSA. To be considered exempt, the duties test requires that someone's primary, daily work be composed of executive, administrative, professional, computer, or outside sales tasks.

eligible employees

An employee who meets specific legal or employer-defined requirements to qualify for certain benefits or protections. Under federal laws like FMLA, eligibility is based on factors such as hours worked, length of employment, and employer size.

employability

The set of skills, experience, qualifications, and behaviors that make a worker capable of obtaining and maintaining employment. Performance management decisions can have long-term consequences for someone's overall employability.

employment laws

A legal regulation that governs the rights and responsibilities of employers and employees. Employment laws cover wages, working hours, discrimination, workplace safety, benefits, termination, and many other conditions.

employment status

The classification of an employee based on their type of work arrangement, rights, and benefits. Common employment status classifications include full-time, part-time, temporary, or contract.

Environmental Protection Agency

EPA. The U.S. federal government agency that carries out federal research, monitoring, standard-setting, and enforcement activities to ensure a clean, healthy environment. The Environmental Protection Agency maintains standards for the disposal of hazardous waste.

Equal Employment Opportunity Commission

EEOC. A U.S. federal agency responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee based on the protected classes in Title VII of the Civil Rights Act (1964). The Equal Employment Opportunity Commission investigates discrimination complaints, mediates disputes, and files lawsuits to protect individuals' rights.

Equal Pay Act of 1963

A U.S. federal law that prohibits employers from paying men and women differently for performing the same work in the same workplace. The Equal Pay Act of 1963 attempts to address sex- and gender-based wage disparities and applies regardless of job title.

exempt

A category of employees who are not entitled to overtime pay under the Fair Labor Standards Act. Exempt status is based on job duties, salary level, and how the employee is paid.

Fair Labor Standards Act

FLSA. A U.S. federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards. The Fair Labor Standards Act applies to most public- and private-sector employees.

Family and Medical Leave Act

FMLA. A U.S. federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per 12-month period for qualifying family and medical reasons. The Family and Medical Leave Act also requires continuation of group health insurance coverage during the leave.

FLSA

Fair Labor Standards Act. A U.S. federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards. The FLSA applies to most public- and private-sector employees.

FMLA

Family and Medical Leave Act. A U.S. federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per 12-month period for qualifying family and medical reasons. The FMLA also requires continuation of group health insurance coverage during the leave.

fraudulently

With intentional deception or misrepresentation for personal or financial gain. In employment law, fraudulently requesting leave can include knowingly providing false information to obtain leave, benefits, or protections.

full-time

Working a standard number of hours, set by individual organizations, per workweek. Full-time employment is commonly 30-40 hours per week and is often the baseline for earning full benefits.

gender identity

Whether someone associates themselves with the roles, behaviors, and identities associated with being male, female, both, or neither. Under Title VII, discrimination based on gender identity, including nonconformity with gender norms, is prohibited.

General Duty Clause

A statement within the Occupational Safety and Health Act that establishes that OSHA protections apply even to situations for which there are no specific standards. The General Duty Clause requires employers to provide places of employment that are free from recognized health and safety hazards.

Genetic Information Nondiscrimination Act

GINA. A U.S. federal law enacted in 2008 that prohibits discrimination based on genetic information in health insurance and employment. The Genetic Information and Nondiscrimination Act prohibits employers from using DNA test results or family medical history to make decisions about hiring, promotions, or coverage.

government

Related to federal, state, or local public agencies, often based on an elected public office. Government positions often provide job security, regulated pay scales, and specific benefits.

grievances

A formal complaint raised by employees or unions regarding violations of workplace policies, contracts, or labor agreements. Grievances are usually addressed through an established grievance and resolution process.

grievous economic injury

Significant financial harm that would seriously impact an employer's operations. Grievous economy injury, according to FMLA, is a standard employers may use to deny reinstatement to certain highly compensated employees.

guidelines

An optional OSHA recommendation that suggests further safety practices beyond the requirements in a standard. Guidelines do not incur penalties for non-compliance.

harassment

Any unwelcome conduct based on a protected characteristic, such as race, color, religion, sex, national origin, age, disability, or genetic information, that creates a hostile, intimidating, or offensive work environment. Under Title VII, harassment is a form of discrimination.

hazardous material

Hazmat. A substance that poses a risk to health, safety, property, or the environment. Hazardous material may be chemical, biological, physical, or radiological in nature.

hazards

A source of danger or possible injury. Hazards can be physical hazards like falling objects or health hazards like chemical exposures.

hourly

An employee paid based on the number of hours they work. Hourly employees are typically non-exempt under the FLSA and eligible for overtime pay for hours worked over 40 per week.

human resources

HR. The department in an organization responsible for managing employee relations, policies, hiring, and workplace compliance. Human resources professionals often address and escalate harassment and discrimination complaints.

inspections

The examination or observation of a workplace or process to ensure that it meets all requirements in relevant OSHA standards. Inspections ensure worksites meet safety and health standards and address any lapses in compliance.

layoffs

A temporary or permanent termination of employees due to business conditions like reduced demand, cost-cutting measures, or restructuring. Layoffs are generally not based on employee performance but on economic or operational needs of the employer.

leave of absence

An approved period when employees are temporarily away from work for personal, medical, military, or family reasons. A leave of absence may be paid or unpaid and may be protected by law or employer policy.

measurable

Able to be quantified or objectively assessed. Measurable criteria in employee management help to fairly and consistently evaluate employee productivity and effectiveness.

minimum wage

The lowest hourly rate that employers are legally allowed to pay workers. Minimum wage is set by federal, state, or local law, though no state or local minimum wage may be lower than the federal rate.

mining

An industry focused on the extraction of valuable minerals and other geological materials, such as coal, metals, and non-metallic substances, from the Earth. Mining plays a critical role in providing raw materials for manufacturing, energy production, and construction.

minors

An individual under the age of eighteen. U.S. labor laws place special protections and restrictions on the type and amount of work minors can perform, including prohibiting most non-agrarian employment for all children under age fourteen.

misconduct

Any action that violates company policies, safety regulations, or legal standards. Workplace misconduct includes harassment, discrimination, bullying, violence, theft, and other behaviors.

morale

The overall emotional and mental state of employees, shaped by job satisfaction, trust in leadership, and a sense of being valued and respected. Morale can be maintained or improved through respectful workplace practices that prevent harassment and discrimination.

National Labor Relations Act

NLRA. A foundational U.S. labor law enacted in 1935 that protects employees' rights to organize, bargain collectively, and engage in concerted activities. The National Labor Relations Act established the National Labor Relations Board to enforce these rights.

national origin

A person's country of birth or ancestry. Discrimination based on national origin is prohibited under Title VII, including treating someone unfavorably because of their ethnicity, accent, language, or cultural customs.

NLRA

National Labor Relations Act. A foundational U.S. labor law enacted in 1935 that protects employees' rights to organize, bargain collectively, and engage in concerted activities. The NLRA established the National Labor Relations Board to enforce these rights.

non-exempt

A category of employees who are entitled to overtime pay under the Fair Labor Standards Act. Non-exempt employees must receive overtime pay for hours worked beyond 40 in a workweek.

objective

Based on observable, measurable facts rather than opinions or personal judgments. Objective feedback ensures fairness and clarity in performance evaluations.

Occupational Safety and Health Act

OSH Act. A law passed in 1970 to assure safe and healthy working conditions. The Occupational Safety and Health Act established the Occupational Safety and Health Administration (OSHA) and its authority to oversee workplace safety and health through standards, enforcement, research, education, and training.

Occupational Safety and Health Administration

OSHA. A government agency under the U.S. Department of Labor that sets the standards for safe working conditions in the United States. The Occupational Safety and Health Administration ensures that employees work in safe and healthy environments.

oil and gas

An industry focused on the exploration, extraction, refining, and distribution of petroleum and natural gas resources. Oil and gas is a major sector for energy production and contributes significantly to the economy through jobs, exports, and energy supplies.

organize

The act of employees coming together to form or join a union to advocate for improved workplace conditions. Organizing often involves collective action, outreach, and legal processes.

OSHA

Occupational Safety and Health Administration. A government agency under the U.S. Department of Labor that sets the standards for safe working conditions in the United States. OSHA ensures that employees work in safe and healthy environments.

overtime pay

Additional compensation required for non-exempt employees who work more than 40 hours in a workweek. Under federal law, overtime pay is typically paid at one and one-half times the regular rate of pay.

partial wage replacement

Providing an employee with a portion of their regular earnings while they are on leave or unable to work. Partial wage replacement is commonly offered through state paid leave programs, disability insurance, or employer benefits.

part-time

Regularly working fewer hours than what a company defines as full-time, which is commonly 30 to 40 hours per week. Part-time employees may have limited access to benefits compared with full-time workers.

performance management

The ongoing process of evaluating, guiding, and improving employee performance to meet organizational goals. Performance management includes goal setting, feedback, coaching, and performance reviews, as well as related decisions like promoting or terminating employees.

personal protective equipment

PPE. Any piece of clothing or device used to minimize exposure to hazards and prevent injuries. Personal protective equipment may include safety glasses, hard hats, and steel-toed shoes.

post-return protections

A set of safeguards that protect military service members from workplace discrimination or retaliation after they return to civilian employment. Post-return protections prohibit termination except for just cause for up to a year, depending on the service member's length of absence.

PPE

Personal protective equipment. Any piece of clothing or device used to minimize exposure to hazards and prevent injuries. PPE may include safety glasses, hard hats, and steel-toed shoes.

Pregnancy Discrimination Act

A 1978 amendment to Title VII that prohibits discrimination based on pregnancy, childbirth, or related medical conditions. The Pregnancy Discrimination Act mandates that eligible employers treat pregnancy-related conditions as they would any other temporary medical condition by providing reasonable accommodations and leave as required and ensures that employees are not demoted, denied opportunities, or terminated due to pregnancy.

private sector

A business or organization that is privately owned and operated. Employment in the private sector is generally driven by profit and is not government-funded.

protected classes

A trait that is safeguarded from discrimination under federal or state law. Protected classes under Title VII of the Civil Rights Act (1964) include race, color, religion, sex, pregnancy, gender identity, sexual orientation, national origin, age, disability, and genetic information.

public sector

An office, business, or organization of the government at the federal, state, or local level. Employment in the public sector is funded by taxpayer dollars and often comes with structured benefits and job protections.

race

A group of people who share certain distinctive physical traits. Race is a protected class under Title VII of the Civil Rights Act (1964), which prohibits discrimination and unequal treatment of protected classes.

recall rights

An employee's entitlement to be rehired by a former employer after a layoff when business conditions improve and before the company hires new employees. Recall rights are often defined by union contracts, company policies, or state labor laws.

reductions in force

RIFs. An employer-initiated layoff intended to reduce workforce size due to economic conditions, restructuring, or organizational changes. Reductions in force typically involve eliminating positions rather than terminating employees for performance or misconduct reasons.

retaliation

Any adverse action taken against someone for legally protected actions, including reporting or participating in an investigation about workplace misconduct or union organizing. Retaliation can include demotion, termination, exclusion, or any behavior that would discourage a person from taking a legally protected action.

retraining

Providing employees with new skills or education to help them transition to different jobs or industries after displacement. Retraining is commonly supported by employers, government programs, or workforce development agencies.

RIFs

Reductions in force. An employer-initiated layoff intended to reduce workforce size due to economic conditions, restructuring, or organizational changes. RIFs typically involve eliminating positions rather than terminating employees for performance or misconduct reasons.

salaried

Paid a fixed amount of money on a regular schedule, regardless of hours worked. Salaried employees usually receive pay weekly, bi-weekly, or monthly.

salary threshold

A minimum annual salary, determined by the U.S. Department of Labor, that acts as a cutoff between exempt and non-exempt employees. Earning less than the federal salary threshold is one criterion that could make an employee non-exempt, or eligible for overtime pay, under the Fair Labor Standards Act.

scrap

A material or product that is rejected during the production process because it does not meet quality or specification standards. Scrap may sometimes be recycled or reworked, but it represents wasted resources and added cost for the manufacturer.

seasonal

Hired to work during specific times of the year, often aligned with holidays, peak business periods, or weather-dependent industries. Seasonal employment ends when the season or peak period concludes.

seniority

An employee's length of service with an employer or within a bargaining unit. Seniority is often used to determine promotions, layoffs, scheduling, or benefits.

severance pay

Compensation provided to employees upon termination or layoff, typically based on length of service or position. Severance pay is not required under federal law but may be offered through company policy, contracts, or collective bargaining agreements.

sex

The chromosomal biology that determines whether someone is male, female, or intersex. Sex is a protected class under Title VII of the Civil Rights Act (1964), as well as other U.S. labor laws.

sexual orientation

Who a person is emotionally, romantically, or sexually attracted to, including heterosexual, homosexual, bisexual, and asexual orientation. In 2020, the U.S. Supreme Court ruled in Bostock v. Clayton County that Title VII's protections against sex discrimination include sexual orientation.

stability

A person's overall economic outlook, including consistent income, access to benefits, and the ability to meet financial obligations. Stability is influenced by job continuity, reliable wages, and predictable work conditions.

staffing agencies

A third-party organization that recruits, hires, and places workers with companies on a temporary, contract, or permanent basis. Staffing agencies, which are sometimes called "temporary agencies" or "temp agencies," help employers meet fluctuating labor demands while managing recruitment, payroll, and compliance responsibilities.

standards

An established policy regarding a particular practice or method. Standards created by the Occupational Safety and Health Administration (OSHA) are legally binding.

strike

A collective action in which employees intentionally stop working to protest working conditions, wages, benefits, or management practices. A strike is typically used as a negotiation tool to pressure an employer into reaching an agreement with a labor union or workforce.

temporary

Hired for a limited period to fill short-term needs, such as absences, projects, or special assignments. Temporary employees may be directly employed or provided through staffing agencies.

terminations

The formal ending of an employee's job by the employer. Terminations can be voluntary, as in the case of resignation or retirement, or involuntary, such as layoffs, firings, or performance-based dismissals.

Title VII

A section of the Civil Rights Act (1964) that prohibits employment discrimination based on race, color, religion, sex, national origin, or other protected traits. Title VII applies to employers with 15 or more employees and covers all aspects of employment, including hiring, terminations, promotions, and compensation.

Toxic Substance Control Act

TSCA. A U.S. law enacted in 1976 that gives the Environmental Protection Agency the authority to regulate the manufacturing, importation, use, and disposal of chemicals. The Toxic Substances Control Act protects human health and the environment by ensuring that chemicals are tested for safety and handled with care throughout their lifecycle.

training agreement

A formal arrangement between an employer and employee outlining terms of workplace training, skill development, and sometimes the commitment to remain with the employer after completion. A training agreement is common for employees seeking apprenticeships or specialized professional training.

turnover

The rate at which employees leave an organization and are replaced. Turnover rates can reflect employee satisfaction and stability.

unemployment benefits

A temporary financial payment provided to eligible employees who lose their jobs through no fault of their own. Unemployment benefits are administered by states and funded through employer payroll taxes.

union

An organization of employees that represents its members in negotiations with employers over wages, benefits, and working conditions. Union membership can influence employment status through collective bargaining agreements.

unionize

The act of employees forming or joining a labor union to collectively negotiate with their employer. Unionization gives employees a unified voice in addressing wages, benefits, and workplace conditions.

USERRA

Uniformed Services Employment and Reemployment Rights Act of 1994. A U.S. federal law that protects the job rights of individuals who voluntarily or involuntarily leave employment to serve in the uniformed services. USERRA prevents employers from discriminating against past or present service members in hiring, promotion, retention, or benefits, and requires that they provide a supportive and respectful work environment that is free from bias based on military obligations.

wage theft

An employer's failure to pay employees all wages they are legally owed. Wage theft can include unpaid overtime, minimum wage violations, or requiring off-the-clock work.

whistleblower protections

A federal labor law that protects employees who reveal a person or organization's illegal practices. Whistleblower protections prevent most employees who expose safety violations from being retaliated against by their employer.

white-collar

Relating to work performed in an office or other professional environment. White-collar roles include administrative and professional employees like managers, executives, and engineers.

Worker Adjustment and Retraining Notification Act

WARN Act. A U.S. federal law that requires employers with at least 100 employees to provide advance notice of mass layoffs or plant closings when a reduction in force will affect at least 50 employees at any single site. The purpose of the Worker Adjustment and Retraining Notification Act is to give workers and communities time to prepare for job losses and seek alternative employment or training.