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Objective 6.4Workplace· 2 min read

U.S. Employment Law & Regulations

U.S. Employment Law & Regulations

What you will learn

  • Match each major federal law to what it governs.
  • Know key coverage thresholds (15 employees for Title VII and ADA, 20 for ADEA).
  • Distinguish disparate treatment from disparate impact.
  • Explain employment at will and its exceptions.

This is the exam's only country-specific area, and SHRM-CP tests it even for candidates outside the U.S. You don't need case-law detail, only what each major law governs and whom it covers.

Key federal laws

Title VIIProhibits discrimination based on race, color, religion, sex, and national origin. 15+ employees.
ADEAProtects people 40 and older from age discrimination. 20+ employees.
ADAProhibits discrimination against qualified people with disabilities and requires reasonable accommodation absent undue hardship. 15+ employees.
EPAEqual pay for men and women doing equal work in the same establishment.
FLSAMinimum wage, overtime at time and a half after 40 weekly hours for nonexempt employees, child labor.
FMLAUp to 12 weeks of unpaid, job-protected leave in 12 months for family or medical reasons.
Form I-9 (IRCA)Verifying a new hire's identity and legal eligibility to work.

Disparate treatment vs. disparate impact

Disparate treatmentDisparate impact
IntentIntentional discrimination against an individual because of their groupA facially neutral requirement that disproportionately harms a protected group
DefenseA legitimate non-discriminatory reasonThe requirement is job-related and a business necessity

Employment at will has limits

The relationship may end for any lawful reason or none, but not for discriminatory, retaliatory, or public-policy-violating reasons, or in breach of an express or implied contract. An option saying firing is allowed for any reason including discrimination is always wrong.

What matters on the exam

  • FMLA leave is unpaid and extends to 26 weeks only for military caregiver leave.
  • Political affiliation is not a Title VII protected class.
  • Tax withholding uses the W-4; work eligibility uses the I-9.

Quick check

Answer in your head first, then reveal.

  1. Which law governs overtime?Reveal the answer

    FLSA.

  2. Whom does the ADEA protect?Reveal the answer

    People aged 40 and over.

  3. A fitness test for an office job fails a protected group at a higher rate. Which concept?Reveal the answer

    Disparate impact.

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