Employment Laws and Regulatory Compliance

The government mandates employment laws and the regulations for compliance.

The U.S. government establishes labor laws to protect the rights of job seekers and wage earners. Additionally, employment tax laws are established to ensure employer and employee payroll tax compliance.

Statutory Agencies

The Department of Labor is the agency responsible for setting federal labor laws. It administers more than 180 labor laws that affect most public- and private-sector employment. The Internal Revenue Service is the agency responsible for enforcing employment tax laws. It processed more than 236 million tax returns in 2009.

Related Laws

Some key employment laws are those concerning wages and hours, which regulate the minimum wage, overtime pay, child labor and record-keeping standards; workplace safety and health; workers' compensation; employee benefit security; wage garnishment; plant closings and layoffs; and industries, such as transportation, mining and construction. Employment tax laws include the standards for withholding taxes from employee wages, and payroll tax reporting and payment.

Considerations

To comply with federal employment tax laws, the employer must follow the instructions in the IRS' Employer's Tax Guide (Circular E). It can check the Labor Department's website for federal labor compliance regulations. Notably, some states have their own labor and employment tax laws. The employer can check with its state labor board for state employment regulations and with its state revenue/taxation agency for state employment tax regulations.

References

• U.S. Department of Labor: Summary of the Major Laws of the Department of Labor
• IRS: The Agency, its Mission and Statutory Authority

Resources

• IRS 2010 Circular E
• State Labor Offices
• State Revenue Sites