Common Illegal Practices in Employment

There are some employment practices which are illegal but remain very common especially in the low-market sector where there is a widespread belief that workers are dispensable.

These are some employment violations that are so common to the extent that many workers and employers have considered these as social norms:

Wage Violations: Non-Payment of Salaries and Overtime

The Fair Labor Standard Act (FLSA), which establishes the standard for minimum wage and overtime pay, is one of the most commonly violated employment laws because many employers think that small businesses are not covered by these wage provisions.

But contrary to popular belief, FLSA applies to almost all employers since this law covers businesses with an annual profit of $500,000 and higher and companies which are engaged in interstate commerce.

Most courts interpret interstate commerce as transporting and selling goods from one state to another and making phone calls and sending emails to another jurisdiction.

Unlawful Termination of At-Will Workers

Because at-will employment agreement allows companies to terminate workers without a valid reason, many employers think that they will not be liable for unlawful termination lawsuit.

However, under the employment law, at-will workers are protected from termination based on discrimination, retaliation, harassment, and immigration status (as long they are allowed to work in the country).  In addition, they cannot be terminated for practicing their rights such as filing a worker’s compensation or lawsuit against their employers; also, they cannot be terminated for performing their legal duties such as participating in federal or state investigation and serving in a jury. 

Illegal Deduction of Wages

Most states prohibit employers from making wage deductions to cover losses and damages which are part of running a business.  For example, a restaurant owner cannot deduct wages from his waiters if some guests walk out of the restaurant without paying their bills.But generally, damages and losses caused by fraud and extreme negligence are not considered as part of any business operation which means that wage deductions may be allowed.

Illegal Job Advertisement

Under federal and state law, it is illegal to discriminate workers based on age and gender.  This means that the seemingly harmless job advertisement which says "looking for employees aged 20 to 30" or "preferring male employees" is already discriminatory in nature.When making job advertisement, employers should base their requirements on work-related reasons rather than unreasonable grounds that usually lead to discrimination.