---
name: employment-law-basics
description: |
  Provides an overview of fundamental employment law concepts including at-will employment, employee vs. contractor classification, wage and hour basics under the FLSA, workplace discrimination protections, and wrongful termination. Helps employees understand their rights and prepare informed questions for an employment attorney.
  Use when the user has questions about their employment rights, wants to understand at-will employment, needs to know about wage and hour laws, or is concerned about workplace discrimination or wrongful termination.
  Do NOT use for reviewing a specific employment contract (use employment-contract-reader), filing EEOC complaints, employer-side HR guidance, or legal advice on specific workplace disputes.
license: Apache-2.0
metadata:
  author: foundry-skills
  version: "1.0.0"
  tags: "legal-literacy contracts guide research"
  category: "legal-civic"
  subcategory: "business-legal"
  depends: ""
  disclaimer: "not-legal-advice"
  difficulty: "intermediate"
---
# Employment Law Basics

> **Disclaimer:** This skill provides general legal literacy and educational information to help you understand legal concepts and processes. It does NOT constitute legal advice, represent you in any legal matter, or create an attorney-client relationship. Laws vary by jurisdiction and change over time. Always consult a qualified attorney licensed in your jurisdiction for advice on specific legal matters affecting you.

## When to Use

**Use this skill when:**
- The user wants to understand whether they are an at-will employee and what exceptions to at-will employment might protect them
- The user suspects they are misclassified as an independent contractor when their working relationship looks more like employment
- The user has questions about overtime eligibility, minimum wage, unpaid wages, or whether their pay practices comply with the FLSA
- The user is concerned about workplace discrimination, harassment, or retaliation based on a protected characteristic and wants to understand what the law covers
- The user believes they may have been wrongfully terminated and wants to understand whether their situation fits any recognized legal category
- The user wants to understand FMLA rights, whistleblower protections, or non-compete enforceability before taking any action
- The user is preparing questions and background knowledge for a consultation with an employment attorney and wants to arrive informed

**Do NOT use when:**
- The user wants to review a specific employment contract, offer letter, or severance agreement -- use `employment-contract-reader` for document-specific analysis
- The user is ready to file an EEOC or state agency complaint and needs step-by-step procedural guidance -- that process requires jurisdiction-specific procedural knowledge and attorney assistance
- The user is an employer, HR professional, or business owner seeking compliance guidance -- the legal framework, incentives, and obligations are fundamentally different from the employee perspective
- The user needs immediate legal advice about a time-sensitive workplace situation (imminent termination, active lawsuit, deposition scheduled) -- direct them to an employment attorney immediately
- The user is outside the United States -- employment law is deeply jurisdiction-specific, and this skill covers U.S. federal and state law only; Canadian, UK, EU, and other systems require entirely different frameworks
- The user wants to negotiate a severance package -- while background knowledge here is relevant, negotiation strategy is a distinct skill involving leverage analysis and document review
- The user needs guidance on union organizing, collective bargaining, or the National Labor Relations Act -- NLRA rights and union procedures are a specialized subfield

---

## Process

### Step 1: Identify the User's Employment Situation and Core Concern

Before explaining any law, gather enough context to make the explanation relevant. Ask directly:

- **Employment classification:** Are you currently working as a full-time employee, part-time employee, independent contractor (1099), temp agency worker, seasonal worker, intern, or something else?
- **Employer size:** Approximately how many employees does your employer have? (This determines which federal and state laws apply -- thresholds at 1, 15, 20, 50, and 100 employees trigger different protections)
- **State of work:** What state do you physically perform your work in? (Not the employer's state -- where you work determines applicable law for remote workers)
- **Duration of employment:** How long have you worked for this employer? (Relevant for FMLA eligibility, statute of limitations, and implied contract arguments)
- **Written agreements:** Do you have a written employment contract, offer letter with specific language, or employee handbook? Have you signed a non-compete, non-disclosure, or arbitration agreement?
- **The specific issue:** What happened, or what are you concerned might happen? (Termination, unpaid wages, harassment, denial of leave, classification dispute)

Use the answers to focus the explanation. Do not dump all employment law topics at once -- identify the one or two most relevant areas and explain those with precision.

### Step 2: Determine the Applicable Legal Framework

Employment law operates in layers. For every issue, identify which laws potentially apply before explaining them:

**Federal floor -- applies nationwide to qualifying employers:**
- FLSA (Fair Labor Standards Act): Minimum wage, overtime, child labor -- applies to virtually all employers with $500,000+ in annual revenue or engaged in interstate commerce (which covers nearly every commercial employer)
- Title VII of the Civil Rights Act: Race, color, national origin, sex (including pregnancy, gender identity, sexual orientation per Bostock v. Clayton County, 2020), religion -- employers with **15+ employees**
- ADA (Americans with Disabilities Act): Disability discrimination and reasonable accommodation -- employers with **15+ employees**
- ADEA (Age Discrimination in Employment Act): Age 40+ discrimination -- employers with **20+ employees**
- Equal Pay Act (EPA): Pay disparities based on sex for equal work -- virtually **all employers**
- GINA (Genetic Information Nondiscrimination Act): Genetic information in employment -- employers with **15+ employees**
- FMLA (Family and Medical Leave Act): 12 weeks unpaid job-protected leave -- employers with **50+ employees** within 75 miles; employee must have worked **12+ months** and **1,250+ hours** in the prior year
- OSHA: Workplace safety -- most private sector employers regardless of size

**State law -- often provides stronger protections:**
- Many states extend anti-discrimination protections to smaller employers (e.g., New York covers employers with **4+ employees** for most protections)
- California, New York, Washington, and Massachusetts have significantly higher salary thresholds for overtime exemption and broader leave entitlements
- Some states add protected categories: marital status, political activity, source of income, credit history, criminal history (ban-the-box laws), gender expression, weight/height
- State wage and hour laws often have longer statutes of limitations than the FLSA's 2-3 year window (California allows 3 years for Labor Code claims; New York allows 6 years under its Labor Law)
- State whistleblower laws often protect a broader range of disclosures than federal statutes

**Always note:** Federal law sets a floor, not a ceiling. State law can be more protective but not less. The employee generally benefits from whichever law provides the greater protection.

### Step 3: Explain At-Will Employment and Its Exceptions

The at-will doctrine is widely misunderstood -- both overestimated by employers and underestimated by employees.

**The rule:** In 49 states (all except Montana), employment is presumed to be at-will. Either party can end the relationship at any time, for any reason (or no reason), with or without notice.

**Montana exception:** The Montana Wrongful Discharge From Employment Act (WDEA) is the only state statute requiring "good cause" for termination after the employer's probationary period (or 6 months if no probationary period is defined). Good cause means "reasonable job-related grounds."

**The four major exceptions to at-will -- these are where wrongful termination claims arise:**

1. **Statutory exceptions (discrimination and retaliation):** Federal and state anti-discrimination and anti-retaliation statutes carve out specific forbidden reasons for termination. A termination motivated by a protected characteristic or protected activity is actionable regardless of at-will status.

2. **Contract exceptions:** An express written employment contract that limits termination grounds overrides at-will presumption. More subtly, implied contracts can arise from:
   - Employee handbook language promising progressive discipline, "just cause" termination, or specific termination procedures
   - Oral promises made during hiring ("you'll have a job here as long as you perform")
   - Offer letters containing specific language about employment duration or termination
   - Courts in most states will recognize implied contract claims, but the specific threshold for handbook language to create a contract varies by state. Many employers include explicit disclaimers in handbooks to preserve at-will status.

3. **Public policy exceptions (tort claims):** Recognized in most states, this exception prohibits termination for:
   - Refusing to perform an illegal act at the employer's direction
   - Performing a statutory duty (jury duty, military service, voting)
   - Exercising a statutory right (filing a workers' compensation claim, taking FMLA leave)
   - Reporting illegal activity (whistleblowing, reporting OSHA violations)

4. **Implied covenant of good faith and fair dealing:** A minority of states (notably California, Massachusetts, Alabama, Alaska, Arizona, Delaware, Idaho, Nevada, Utah, Wyoming) recognize this as an additional at-will exception, allowing claims where an employer terminates in bad faith specifically to deprive an employee of earned benefits (e.g., firing a salesperson just before a large commission vests).

### Step 4: Explain Employee vs. Independent Contractor Classification

Misclassification is among the most litigated and financially significant employment law issues. Workers misclassified as independent contractors may be owed back wages, overtime, employee benefits, and employers face tax liability plus penalties.

**Why classification matters:**
- Employees receive: federal minimum wage, FLSA overtime, workers' compensation insurance, unemployment insurance, employer portion of FICA taxes (7.65%), anti-discrimination protections, FMLA eligibility, ADA reasonable accommodation
- Independent contractors receive none of these by default; they pay self-employment tax (15.3%) on the full amount of income

**Three distinct classification tests -- the applicable test depends on the legal context:**

**IRS 3-Category Test (for federal tax purposes):**
The IRS uses three broad categories with roughly 20 sub-factors:
- *Behavioral control:* Does the company control how the work is done (not just the result)? Does it set work hours, dictate methods, require specific tools, provide training?
- *Financial control:* Does the worker have significant unreimbursed business expenses? Is the worker available to work for multiple clients simultaneously? Did the worker make a significant investment in tools or facilities? Can the worker realize a profit or loss?
- *Type of relationship:* Is there a written contract calling it a contractor relationship? Are benefits provided? Is the relationship indefinite or project-based? Is the work performed a key aspect of the employer's regular business?

No single factor is determinative. The IRS weighs the overall picture.

**DOL Economic Reality Test (for FLSA purposes):**
The Department of Labor uses an "economic reality" framework asking whether the worker is economically dependent on the employer or genuinely in business for themselves:
1. Is the work integral to the employer's business?
2. Does the worker have opportunity for profit or loss based on managerial skill?
3. Has the worker made investment in facilities and equipment?
4. Does the work require special skill and initiative?
5. Is the relationship permanent or indefinite?
6. Does the employer exercise control over meaningful aspects of the work?

In 2024, the DOL revised its economic reality rule, restoring a multi-factor totality-of-circumstances approach and emphasizing economic dependence as the core inquiry. The revised rule makes it harder to classify workers as independent contractors.

**ABC Test (used for various purposes in California, New Jersey, Massachusetts, Connecticut, Vermont, and others):**
This is the most worker-protective test. Workers are presumed to be employees unless the hiring entity proves ALL THREE of:
- **(A)** The worker is free from the control and direction of the hiring entity in connection with the performance of the work, under the contract and in fact
- **(B)** The worker performs work that is outside the usual course of the hiring entity's business
- **(C)** The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed

The B prong is particularly powerful -- a programmer hired by a software company cannot satisfy it, regardless of how the contract is written.

**California's special framework (AB 5):** California codified the ABC test in 2019 via AB 5, then amended it with AB 2257 to create dozens of industry-specific exemptions (doctors, lawyers, licensed insurance agents, real estate agents, etc.). California workers should consult a California employment attorney because the carve-outs are complex.

**If misclassification is suspected:**
- Workers can file a Form SS-8 with the IRS requesting a determination of worker status
- Workers can file a complaint with the DOL Wage and Hour Division
- Many states have their own administrative complaint processes
- Private lawsuits for unpaid minimum wage and overtime are available under the FLSA's collective action mechanism, allowing similarly situated workers to join together

### Step 5: Explain Wage and Hour Law in Depth

**Federal minimum wage:** $7.25/hour since 2009. Many states and cities have set substantially higher minimums. As of recent years, examples include: California ($16/hour statewide, higher in some cities), New York ($16/hour in NYC/Long Island/Westchester, $15/hour elsewhere), Washington ($16.28/hour), Massachusetts ($15/hour). Always verify the current rate for the specific jurisdiction -- these figures change annually in many states.

**FLSA overtime mechanics:**
- Overtime rate is 1.5x the employee's "regular rate of pay" for all hours worked over 40 in a workweek
- The workweek is any fixed, regularly recurring 168-hour period -- employers set the workweek but must maintain it consistently
- The "regular rate" is not simply the hourly wage -- it must include most additional compensation: non-discretionary bonuses, shift differentials, commissions. Purely discretionary bonuses, gifts, and certain expense reimbursements are excluded.
- Comp time (trading overtime hours for time off) is generally illegal in the private sector -- only state and local government employers can use comp time under specific conditions
- **California and some other states add daily overtime:** In California, non-exempt employees earn 1.5x for hours 8-12 in a single workday, 2x for hours beyond 12, and 1.5x for the first 8 hours on the seventh consecutive day in a workweek, 2x beyond 8 hours on the seventh day

**Exempt vs. non-exempt classification -- the two-part FLSA test:**

Both the salary basis test AND the duties test must be met for an exemption to apply:

*Salary basis test (current federal threshold):*
- White collar exemptions: $684/week ($35,568/year) -- note this threshold was subject to a DOL rulemaking in 2024 that attempted to raise it significantly; verify the current operative threshold as litigation affected implementation
- Highly compensated employees (HCE) exemption: $107,432/year total annual compensation (with at least $684/week paid on salary or fee basis)
- Several states have higher salary thresholds: California requires $1,240/week ($64,480/year for 2024), Washington requires $1,302.40/week ($67,724.80/year for 2024), New York requires $1,200/week in New York City and Long Island/Westchester, $1,124.20/week elsewhere

*Duties tests (the five white-collar exemptions):*
- **Executive exemption:** Primary duty is managing the enterprise or a recognized department; regularly directs the work of 2+ full-time employees (or equivalent); has authority to hire/fire or whose recommendations are given particular weight
- **Administrative exemption:** Primary duty is office/non-manual work directly related to management or general business operations; primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. This is the most litigated exemption -- the "discretion and independent judgment" requirement is frequently misapplied.
- **Professional exemption:** Primary duty is work requiring advanced knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction (learned professional), OR primary duty is work requiring invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor (creative professional)
- **Computer employee exemption:** Must be employed as a computer systems analyst, programmer, software engineer, or similar skilled worker; must meet the salary threshold OR earn at least $27.63/hour; duties must involve systems analysis, design, development, documentation, testing, or modification of computer programs
- **Outside sales exemption:** Primary duty is making sales or obtaining orders; customarily and regularly works away from the employer's place of business. No salary requirement for this exemption.

**Common FLSA violations to flag:**
- "Off the clock" work: Pre-shift duties (opening procedures, booting up systems, putting on required safety equipment) and post-shift duties (closing procedures, filing required reports) may be compensable work time
- "Donning and doffing" specialized equipment: Putting on and taking off certain protective gear at the beginning and end of shifts may be compensable (varies based on whether time is de minimis and whether it is integral to the job)
- Improper meal period deductions: A meal break is only non-compensable if the employee is completely relieved of duties for the entire break period (DOL minimum is 30 minutes for a bona fide meal period). If an employee is required to stay at their workstation, remain on-call, or handle tasks during a "break," it is likely compensable time.
- Rounding practices: Employers may round time entries but only if the rounding practice is neutral -- it must not consistently round in the employer's favor. Many automatic rounding systems have been challenged successfully.
- Piece-rate overtime: Workers paid by the piece must still receive overtime at 1.5x their regular rate for hours over 40. The regular rate calculation for piece-rate workers uses total piece-rate earnings divided by total hours worked in the workweek.
- Salary deductions: An employer who makes improper deductions from a salaried employee's pay (deducting for partial day absences, for example, when no PTO is available) may destroy the "salary basis" and cause the entire exemption to fail for that period.

**FLSA recordkeeping:** Employers must maintain time and pay records for non-exempt employees for 3 years. Employees should keep their own records -- personal time logs, screenshots of scheduling systems, saved pay stubs -- because in FLSA litigation, if an employer's records are inadequate, the employee's records or testimony can be used to establish hours worked, and the burden shifts to the employer to disprove the employee's evidence.

**Statute of limitations for wage claims:**
- FLSA: 2 years for non-willful violations; 3 years for willful violations. Willfulness is defined as knowing or reckless disregard for FLSA requirements -- courts examine whether the employer took affirmative steps to verify compliance.
- State wage laws often provide longer windows: California allows 3 years for Labor Code violations and up to 4 years under the Unfair Competition Law; New York allows 6 years under its Labor Law; Illinois allows 3 years.
- Filing under state law may allow recovery of more back wages than the FLSA alone.

### Step 6: Explain Discrimination, Harassment, and Retaliation Protections

**Protected characteristics under federal law:**

| Statute | Protected Characteristics | Employer Size Threshold |
|---------|--------------------------|------------------------|
| Title VII (1964) | Race, color, national origin, sex (including pregnancy per PDA 1978; gender identity and sexual orientation per Bostock 2020), religion | 15+ employees |
| ADEA (1967) | Age 40 and over | 20+ employees |
| ADA (1990) | Physical and mental disability | 15+ employees |
| Equal Pay Act (1963) | Sex (in compensation for equal work) | All employers |
| GINA (2008) | Genetic information (including family medical history) | 15+ employees |
| Title II of ADA / Rehabilitation Act | Disability (federal contractors, government entities) | Varies |
| PWFA (2023) | Pregnancy, childbirth, and related medical conditions (reasonable accommodations specifically) | 15+ employees |

**Types of discrimination -- important to distinguish:**
- **Disparate treatment:** Intentional discrimination. The employer treated the employee differently because of a protected characteristic. Proven through direct evidence (discriminatory statements) or circumstantial evidence using the McDonnell Douglas burden-shifting framework: employee establishes a prima facie case → employer articulates a legitimate, nondiscriminatory reason → employee demonstrates the reason is pretextual.
- **Disparate impact:** A facially neutral policy or practice has a disproportionate adverse effect on a protected group, and the employer cannot demonstrate business necessity. Classic example: a minimum height requirement that screens out more women and Asians proportionally than white men, without being job-related.
- **Hostile work environment:** Harassment based on a protected characteristic that is severe or pervasive enough to alter the conditions of employment and create an abusive working environment. Two key dimensions: severity (a single extremely serious incident can suffice) OR pervasiveness (a pattern of less severe incidents can cumulatively create a hostile environment). The conduct must be both objectively hostile (a reasonable person standard) and subjectively perceived as hostile by the victim.
- **Quid pro quo harassment:** A supervisor conditions employment benefits (hire, promotion, raise, favorable schedule) on submission to unwelcome sexual conduct. A single incident can constitute actionable quid pro quo harassment.
- **Failure to accommodate:** Under the ADA, employers must provide reasonable accommodations for known disabilities unless doing so would impose an undue hardship. Under Title VII, employers must reasonably accommodate sincerely held religious beliefs and practices unless it causes more than de minimis hardship. The undue hardship standard is higher for disability accommodation (significant difficulty or expense) than for religious accommodation.

**The EEOC administrative process -- critical deadlines:**
Before filing a federal civil lawsuit under Title VII, ADEA, ADA, or GINA, an employee must exhaust administrative remedies by filing a charge with the EEOC. Failure to do so within the deadline forfeits the right to sue.

- **180-day deadline:** Applies in states without a state fair employment practices agency (FEPA) -- currently rare, as most states have state agencies
- **300-day deadline:** Applies in "deferral states" that have their own FEPA (the majority of states). The EEOC automatically cross-files with the state agency.
- **The clock starts running on the day the discriminatory act occurs** -- for termination, it is the date of notification, not the last day of work. For a hostile work environment (continuing violation), the charge must be filed within the deadline of the last act contributing to the hostile environment.
- After the EEOC issues a "right to sue" letter, the employee has **90 days** to file a federal lawsuit. Missing this deadline is typically fatal to the federal claim.
- **Equal Pay Act claims** do not require EEOC exhaustion before suit -- they can be filed directly in court within 2 years (3 years for willful violations).
- **State agency deadlines** vary and may be different from the EEOC deadlines -- in some states, state agency filing deadlines are shorter. This is a critical reason to consult an attorney promptly.

**Retaliation protections -- among the strongest protections in employment law:**
Retaliation claims are now the most frequently filed claim type at the EEOC, exceeding race and sex discrimination claims. Federal anti-discrimination statutes all contain anti-retaliation provisions. Key points:
- Protected activity includes: filing an EEOC charge, participating in an EEOC investigation or proceeding, opposing unlawful discrimination (making an internal complaint, reporting to a supervisor), requesting reasonable accommodation, filing a workers' compensation claim, taking FMLA leave, reporting OSHA violations, refusing to participate in illegal activity
- An adverse action is retaliation if it would dissuade a reasonable employee from engaging in protected activity. This extends beyond termination to include: demotions, pay cuts, reduced hours, unfavorable schedule changes, lateral transfers to less desirable positions, increased scrutiny, negative performance reviews issued shortly after protected activity, exclusion from meetings, and changes to job duties.
- **Temporal proximity** between the protected activity and the adverse action is the most common circumstantial evidence of retaliation. Courts look at whether the timing is "very close" -- generally within a few weeks, though longer gaps combined with other evidence can also support a retaliation claim.
- Employees who believe they are experiencing retaliation should document everything in real time: write a contemporaneous memo to themselves with dates, times, what was said, who witnessed it, and how it differed from prior treatment.

### Step 7: Explain Specific Statutory Rights Often Confused

**FMLA in detail:**
- *Employer coverage:* 50+ employees within 75 miles of the employee's worksite for 20 or more workweeks in the current or preceding calendar year
- *Employee eligibility:* Worked for the employer for at least 12 months (not necessarily consecutive); worked at least 1,250 hours during the 12 months preceding the leave; works at a location where the employer has 50+ employees within 75 miles
- *Leave entitlements:* 12 workweeks per year for: birth/adoption/foster placement of a child; serious health condition of the employee; serious health condition of a spouse, child, or parent; qualifying military exigencies. 26 weeks for military caregiver leave.
- *Leave can be intermittent:* Employees can take FMLA leave in blocks as small as one hour if medically necessary. Employers cannot penalize attendance for FMLA-qualifying absences.
- *Job protection:* Employee must be restored to the same or an equivalent position upon return. Equivalent means: same pay, benefits, shift, schedule, location, and substantially similar duties and responsibilities.
- *Notice requirements:* Employee must provide 30 days advance notice when the need is foreseeable; when not foreseeable, as soon as practicable (same day or next business day). The employee does not need to invoke the magic words "FMLA" -- they need only provide enough information for the employer to recognize the leave may be FMLA-qualifying.
- *Medical certification:* Employers can require medical certification within 15 calendar days. They can require second and third opinions (at employer expense) and recertification under certain conditions.
- *State analogs:* California (CFRA), New York (NYPFL), New Jersey (NJFLA), Oregon, Washington, Massachusetts, and others have state leave laws that may apply to smaller employers, cover a broader range of family members, or provide paid leave benefits. State leave laws often run concurrently with FMLA.

**Whistleblower protections -- key federal statutes:**
- *Sarbanes-Oxley (SOX):* Protects employees of publicly traded companies and their subsidiaries and contractors who report violations of SEC rules, mail fraud, wire fraud, bank fraud, or securities fraud. Complaints filed with OSHA within **180 days** of the retaliation. Remedies include reinstatement, back pay, and attorneys' fees.
- *Dodd-Frank Act:* Protects employees who report securities law violations to the SEC. No OSHA filing required -- can go directly to SEC. Includes a financial rewards program: 10-30% of monetary sanctions over $1 million collected by the SEC. Six-year statute of limitations from the retaliation, or three years from when the employee knew or reasonably should have known of the retaliation (capped at 10 years).
- *False Claims Act (qui tam):* Employees who report fraud on federal government contracts can file suit on behalf of the government and receive 15-30% of recovered funds. Anti-retaliation protection for employees who assist in an FCA investigation.
- *OSHA Section 11(c):* Protects employees who report workplace safety and health violations. 30-day filing deadline with OSHA -- one of the shortest whistleblower deadlines in federal law.
- *State whistleblower statutes:* California Labor Code Section 1102.5 (among the broadest -- covers reporting any federal, state, or local law violation to any government agency or internally), New York Labor Law Section 740, and many other states provide additional protections.

### Step 8: Provide Concrete Action Steps and Documentation Guidance

After explaining the relevant law, always translate the information into practical next steps:

**Documentation the user should immediately preserve:**
- Any written communications (emails, texts, chat messages, Slack, Teams) related to the issue -- download/export and save to personal (non-company) storage immediately; company systems may be revoked upon termination
- Performance reviews and any prior positive feedback (contradicts sudden termination for "poor performance" after a complaint)
- Pay stubs, direct deposit records, W-2s, and 1099s
- The employee handbook (most recent version), offer letter, and any signed employment agreements
- Any written record of complaints made to HR or management (date, method, content, response)
- Contemporaneous journal entries describing incidents with dates, times, locations, exact words used, names of witnesses, and how the user felt at the time
- Documentation of medical care sought if physical or mental health was affected

**Key questions to ask an employment attorney:**
- What laws apply to my specific situation given my state, employer size, and employment classification?
- Do I have claims worth pursuing, and what is the likely range of outcomes?
- What are the relevant filing deadlines I need to meet?
- Should I file an administrative charge (EEOC or state agency) first, or can I proceed directly to court?
- Is there a risk that taking any particular action could hurt my claims?
- What is the attorney's fee structure -- contingency, hourly, or hybrid?

---

## Output Format

```
## Employment Law Overview: [Specific Issue]

> **Disclaimer:** This information is general legal literacy, not legal advice.
> Laws vary by jurisdiction. Consult a licensed employment attorney for advice
> specific to your situation.

---

### Your Situation Summary
| Factor | Detail |
|--------|--------|
| Employment type | [Full-time employee / Part-time / Independent contractor / Temp] |
| State of work | [State -- determines which laws apply] |
| Employer size | [Approximate number of employees -- triggers specific statutes] |
| Duration of employment | [Months/years -- FMLA eligibility, SOL windows] |
| Written agreements | [Employment contract / Offer letter / Handbook / None known] |
| Core issue | [One-sentence description of the legal concern] |

---

### Applicable Legal Framework

| Law / Protection | Threshold Met? | Relevance to Your Situation |
|-----------------|---------------|----------------------------|
| FLSA | [Yes / Likely / Verify] | [Specific relevance] |
| Title VII | [Yes / Likely / Verify -- employer has 15+ employees?] | [Specific relevance] |
| ADA | [Yes / Likely / Verify -- employer has 15+ employees?] | [Specific relevance] |
| ADEA | [Yes / Likely / Verify -- employer has 20+? User is 40+?] | [Specific relevance] |
| FMLA | [Yes / Likely / Verify -- employer 50+? User worked 12 mo / 1,250 hrs?] | [Specific relevance] |
| State law | [State name -- may provide broader protection] | [Specific state protections relevant to issue] |

---

### Core Legal Concepts Relevant to Your Situation

**[Concept 1 -- e.g., At-Will Employment and Its Exceptions]**
[3-5 sentences explaining the concept with specific application to the user's facts]

**[Concept 2 -- e.g., Executive Exemption Duties Test]**
[3-5 sentences explaining the concept with specific application to the user's facts]

**[Concept 3 if applicable]**
[3-5 sentences]

---

### Your Rights in This Situation

**What the law generally provides:**
- [Specific right with the specific statute that creates it]
- [Specific right with the specific statute that creates it]
- [Specific right with the specific statute that creates it]

**Important limitations and caveats:**
- [Limitation 1 -- e.g., employer size threshold not met for Title VII]
- [Limitation 2 -- e.g., at-will exception requires proving motive]
- [Limitation 3 -- e.g., salary threshold met but duties test uncertain]

---

### Red Flags in Your Situation
(Factors that, if accurate, may indicate a legal violation worth investigating further)
- [ ] [Specific factual indicator -- e.g., written complaint to HR filed 2 weeks before termination]
- [ ] [Specific factual indicator]
- [ ] [Specific factual indicator]

---

### Action Steps
1. [Immediate action -- usually documentation and preservation]
2. [Second action -- verify specific state law protections for your situation]
3. [Third action -- specific to the issue type]
4. [Consult an employment attorney -- note timing urgency if a deadline is approaching]
5. [Optional: administrative agency complaint if appropriate]

---

### Documentation to Preserve Right Now
- [ ] [Specific document type and why it matters for this situation]
- [ ] [Specific document type]
- [ ] [Specific document type]
- [ ] [Specific document type]
- [ ] Written contemporaneous notes (date, time, location, exact words, witnesses, your response)

---

### Critical Deadlines
| Deadline | Timeframe | Starts Running | Consequence of Missing |
|----------|-----------|---------------|----------------------|
| EEOC charge (if discrimination claim) | 180 days (no state agency) or 300 days (deferral state) | Date of discriminatory act or last act in continuing violation | Right to sue under Title VII/ADA/ADEA/GINA forfeited |
| OSHA whistleblower complaint | 30 days (Sec. 11(c)); 180 days (SOX); 180 days (Title VII retaliation) | Date of retaliatory act | Administrative remedy forfeited |
| FLSA lawsuit | 2 years (non-willful); 3 years (willful) | Date each paycheck was due | Unpaid wages before cutoff unrecoverable |
| State wage claim | [State-specific: 2-6 years] | [Specify: each payday or termination date] | Back wages before cutoff unrecoverable |
| FMLA lawsuit | 2 years (non-willful); 3 years (willful) | Date of alleged violation | Claim time-barred |
| Right to sue after EEOC issues letter | 90 days | Date of right-to-sue letter | Federal lawsuit forfeited |

---

### Resources for Next Steps
| Resource | Purpose | Contact Method | Timing |
|----------|---------|----------------|--------|
| EEOC | File discrimination charge; get right to sue | eeoc.gov; 1-800-669-4000 | Before 180/300-day deadline |
| DOL Wage and Hour Division | FLSA wage complaints | dol.gov/agencies/whd | Within 2-3 year SOL window |
| State labor/employment agency | State wage and discrimination claims | [State agency name] | Per state deadlines |
| Employment attorney | Legal evaluation of specific facts and claims | State bar referral service | As soon as possible; before any deadlines |
| NLRB | Concerted activity / union issues | nlrb.gov | Within 6 months of unfair labor practice |

---

### Jurisdiction Note
This analysis applies federal law as a baseline. [State if provided] may provide broader protections. Key state-specific factors to verify with a local employment attorney:
- Whether your employer meets any lower state employee-count thresholds
- Whether your state adds protected categories relevant to your situation
- The state statute of limitations for your claim type (often longer than federal)
- Whether your state has a higher overtime salary threshold or daily overtime rules
- Whether your state has paid family or medical leave entitlements beyond FMLA
```

---

## Rules

1. **Always lead with the disclaimer and reinforce it before drawing any near-conclusion.** Legal literacy content that sounds too confident can lead users to delay consulting an attorney or take premature action. Frame all substantive explanations with "generally," "under federal law," "courts have held," or "may constitute" -- never "your employer violated the law."

2. **Never advise the user to quit, resign, or explicitly recommend taking any action that cannot be undone.** Resignation can affect unemployment insurance eligibility, constructive discharge claims, and the ability to negotiate severance. Presenting options and their trade-offs is appropriate; recommending a course of action is not.

3. **Always present BOTH the employer-size threshold AND the substantive protection together.** Explaining Title VII without noting the 15-employee threshold, or FMLA without the 50-employee / 12-month / 1,250-hour requirements, creates dangerous misunderstanding about whether the law applies.

4. **When discussing overtime exemption, never accept at face value that a salaried employee is exempt.** The exemption requires both the salary threshold AND a duties test. A manager title does not create the executive exemption; actual job duties -- and specifically whether the employee "regularly directs 2+ full-time employees" and has genuine hiring/firing authority -- determine exemption status. Prompt the user to analyze actual daily duties.

5. **Always specify which EEOC deadline window applies (180 vs. 300 days) by reference to whether the user's state has a state fair employment practices agency.** Virtually all states are "deferral states" with state agencies, meaning 300 days typically applies. But if the user cannot confirm, note both deadlines and emphasize acting as soon as possible. Missing an EEOC filing deadline is jurisdictionally catastrophic.

6. **When discussing independent contractor classification, always identify which legal test applies** -- IRS test (federal tax), DOL economic reality test (FLSA purposes), or state ABC test (state wage law) -- because these tests can yield different results and different remedies. Never conflate them.

7. **Never characterize a hostile work environment claim as viable based solely on the user feeling uncomfortable or treated unfairly.** Hostile work environment requires harassment based on a legally protected characteristic that meets the severe OR pervasive threshold. Unfair treatment unrelated to a protected characteristic, even if genuinely unfair, is not actionable under federal anti-discrimination law. Explain this clearly without discouraging the user from consulting an attorney.

8. **When discussing FMLA, always verify all three eligibility factors** -- employer size (50+ employees within 75 miles), employee tenure (12+ months), and hours worked (1,250+ hours in the prior 12 months) -- before explaining FMLA rights. An employee who works for a 45-person company has no FMLA rights; incorrectly suggesting they do causes concrete harm if they rely on it.

9. **For any retaliation concern, always flag the proximity-in-time issue and instruct immediate contemporaneous documentation.** Evidence of retaliation degrades rapidly -- witnesses' memories fade, electronic records are deleted, and without a contemporaneous record, the timeline is reconstructed from memory alone. Emphasize that a memo written to oneself on the day of an incident is far more credible evidence than one written months later.

10. **Always recommend consulting an employment attorney before taking any action that could affect legal rights or employment status** -- including filing an EEOC charge, making a formal internal complaint, accepting a severance agreement, or signing any release of claims. A release of claims signed without consulting an attorney may waive valuable rights, including ADEA rights that require 21 days to consider (45 days for group layoffs) and a 7-day revocation period under the Older Workers Benefit Protection Act.

---

## Edge Cases

**User is a gig worker or platform worker (rideshare, food delivery, freelance marketplace):**
This is one of the most contested classification battlegrounds in employment law. Platform workers are almost universally classified as independent contractors by the platforms, but the classification is legally contested in multiple states. In California, Prop 22 (2020) created a third category specifically for app-based transportation and delivery workers with some -- but not all -- employee-like protections (a minimum earnings floor, healthcare subsidies, occupational accident insurance). Prop 22 is itself being litigated. In New York, rideshare drivers have access to the state's Unemployment Insurance program. The legal landscape is shifting rapidly. Explain the classification tests (particularly the ABC test in California before Prop 22's carve-out) but emphasize that this area is actively being litigated and legislated, and the user should consult an employment attorney in their state for a current assessment.

**User signed an arbitration agreement and wonders if they can still pursue claims:**
Many employment agreements require arbitration of employment disputes, waiving the right to a jury trial and, often, the right to bring class or collective actions. These agreements are broadly enforced by federal courts under the Federal Arbitration Act (FAA), including for wage and hour collective actions (Epic Systems Corp. v. Lewis, 2018). However, important exceptions exist: Title VII sexual harassment and assault claims are now excluded from mandatory arbitration under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (2022), which allows victims of sexual harassment or assault to bring their claims in court regardless of arbitration agreements. California has additional restrictions on arbitration agreements for employment disputes (though federal preemption issues are ongoing). The user should: (1) locate the arbitration agreement and read what claims are covered and what rules govern the arbitration (AAA, JAMS, or other provider); (2) note that NLRB administrative charges and EEOC charges cannot be arbitrated away -- the administrative processes remain available; and (3) consult an employment attorney before assuming arbitration is their only option.

**User is in the tech industry and received stock options or RSUs that vested partially before termination:**
Equity compensation vesting schedules, cliff vesting provisions, and post-termination exercise windows are contractual matters governed by the equity plan documents, grant agreements, and possibly state contract law -- not primarily employment law. However, if termination occurred shortly before a significant vesting event and there is evidence the timing was deliberate (constructive discharge, pretext termination), this may implicate the implied covenant of good faith and fair dealing in states that recognize it. Additionally, if a defined benefit or deferred compensation plan is involved, ERISA may provide additional protections. Flag this as a situation requiring both an employment attorney and a tax advisor, as equity awards have complex tax treatment (ISOs vs. NSOs, 83(b) elections, AMT implications) that intersects with employment law claims.

**User is a domestic worker, agricultural worker, or home care worker:**
These workers have historically been excluded from some federal protections. The FLSA originally excluded domestic workers and agricultural workers from overtime protections; those exclusions have been substantially modified over time. Current FLSA coverage for home care workers (home health aides, personal care attendants) was expanded in 2015 -- these workers now generally receive minimum wage and overtime protection under the FLSA unless they meet a narrow "companionship services" exemption. Agricultural workers remain subject to different rules: they are covered by FLSA minimum wage but overtime exemptions are broader (small farm exemptions based on man-days of labor). Many states have enacted their own domestic worker bills of rights (New York, California, Illinois, Hawaii, Connecticut, Massachusetts, Nevada, New Mexico, Oregon, and others) that provide protections beyond federal law including paid rest days, advance notice of termination, and harassment protections. Always check state law for these workers because their federal protections are more limited and state protections vary widely.

**User received a severance agreement and wants to understand what rights they might be waiving:**
A severance agreement is a contract that typically releases the employer from all claims -- including wage claims, discrimination claims, and wrongful termination claims -- in exchange for severance pay. Key legal requirements to explain: Under the Older Workers Benefit Protection Act (OWBPA), a waiver of ADEA claims must: be written in plain language, specifically mention ADEA rights, not waive claims arising after the agreement is signed, provide consideration beyond what the employee is already entitled to, advise the employee in writing to consult an attorney, give the employee at least 21 days to consider (45 days in a group layoff), and allow 7 days to revoke after signing. A waiver that fails any of these OWBPA requirements is void as to ADEA claims. Other claims (Title VII, ADA, state law) require knowing and voluntary waiver but do not have the OWBPA's specific procedural requirements. Never advise the user to sign or not sign a severance agreement -- instead, strongly encourage them to have an employment attorney review it before signing, noting that the review period (21 or 45 days) is a legal right they should use.

**User works remotely for an employer in a different state:**
The general rule is that the employment laws of the state where the employee physically performs the work apply, not the employer's headquarters state. This can significantly benefit the employee: a remote worker based in California who works for a Texas employer is entitled to California's extensive wage and hour protections (daily overtime, meal and rest break requirements, higher minimum wage, Private Attorneys General Act penalties) not merely Texas law. However, the employment contract may contain a choice-of-law clause designating a different state's law. Such clauses are generally enforceable but courts may disregard them if applying the chosen state's law would violate a fundamental policy of the state with a materially greater interest in the dispute -- California courts routinely refuse to apply other states' law to California-based workers under this principle. The user should verify: (1) which state their employer considers their official work location; (2) whether their employment agreement has a choice-of-law clause; and (3) what state's labor agency has jurisdiction over their wage complaints. Consult a local employment attorney.

**User is a manager or HR employee who witnessed discrimination or harassment against another employee:**
Third-party witnesses have rights and obligations in discrimination matters that are often overlooked. An employee who reports discrimination they witnessed (as opposed to discrimination directed at them) engages in protected activity under the anti-retaliation provisions of Title VII and state equivalents. If that employee subsequently suffers adverse action, they may have a retaliation claim even though they were not the direct victim of the underlying discrimination. This principle was reinforced in Crawford v. Metropolitan Government of Nashville (2009), where the Supreme Court held that an employee who answered questions during an internal harassment investigation engaged in protected "opposing" activity. Advise the user that: making internal reports, cooperating with EEOC investigations, and answering questions in the course of employer investigations are all protected activities; document any retaliatory treatment following cooperation; and consult an employment attorney if adverse action follows.

---

## Example

**Input:** "I've been a customer service representative at a call center for 3 years. I'm Black and my supervisor has been making racially insensitive comments for about 8 months -- things like saying I should be 'used to' certain types of difficult customers, making jokes about my hair, and twice referring to me and my coworker (also Black) as 'you people.' Last month I reported it to HR. Two weeks later, HR said they couldn't substantiate my complaint. The week after that, I was placed on a performance improvement plan (PIP) for the first time in 3 years. I feel like this is retaliation. What are my rights?"

---

## Employment Law Overview: Racial Harassment and Retaliation

> **Disclaimer:** This information is general legal literacy, not legal advice. Laws vary by jurisdiction and change over time. Consult a licensed employment attorney for advice specific to your situation before taking any action.

---

### Your Situation Summary
| Factor | Detail |
|--------|--------|
| Employment type | Full-time employee (customer service representative) |
| State of work | Not specified -- jurisdiction will affect state law analysis |
| Employer size | Call center (likely 15+ employees -- verify; Title VII threshold matters) |
| Duration of employment | 3 years (well beyond FMLA's 12-month threshold if applicable) |
| Written agreements | Unknown -- ask about employee handbook, arbitration agreement |
| Core issue | Racial harassment by supervisor over 8 months; HR complaint filed; PIP issued 2 weeks later |

---

### Applicable Legal Framework

| Law / Protection | Threshold Met? | Relevance to Your Situation |
|-----------------|---------------|----------------------------|
| Title VII -- Race discrimination | Likely yes (verify 15+ employees) | Prohibits race-based hostile work environment and retaliation for complaints |
| 42 U.S.C. § 1981 | Yes -- applies to all employers regardless of size | Prohibits race discrimination in employment contracts; no EEOC exhaustion required; 4-year SOL |
| State anti-discrimination law | Verify -- often covers smaller employers and may have additional protections | Many states add categories and lower employer-size thresholds |
| Title VII anti-retaliation | Likely yes | Prohibits adverse action against employees who oppose discrimination |
| FLSA | Yes | No wage/hour issues identified, but relevant to employment status |

---

### Core Legal Concepts Relevant to Your Situation

**Racial Harassment as a Hostile Work Environment**
Title VII prohibits race-based harassment that is severe or pervasive enough to alter the conditions of employment and create an abusive working environment. Your situation involves approximately 8 months of race-based comments from a supervisor -- including the phrase "you people" used twice, comments about your hair, and racially coded assumptions about your role with customers. Courts evaluate both the frequency and severity of conduct. Eight months of a pattern of racially charged comments from a supervisor, including the phrase "you people" directed at Black employees as a group, is the type of ongoing conduct that has supported hostile work environment claims. The key legal elements are: (1) the harassment was based on race -- this appears satisfied; (2) it was subjectively and objectively hostile -- the pattern suggests this; (3) it was attributable to the employer -- supervisor harassment is automatically attributable if it results in a tangible employment action, and even without a tangible action, employers can be liable if they fail to take prompt and appropriate corrective action after notice.

**HR's "Unable to Substantiate" Response**
An employer's failure to take corrective action after receiving a harassment complaint is central to employer liability for supervisor harassment under the Faragher/Ellerth framework. You reported to HR. HR investigated and "could not substantiate" the complaint. The adequacy of that investigation -- how many witnesses were interviewed, whether the supervisor was questioned, whether the investigation was documented -- matters to any subsequent legal claim. If the investigation was cursory or the outcome was predetermined, that may itself be evidence relevant to the employer's liability. Document everything HR told you about the investigation process and its conclusions.

**Retaliation: The PIP Two Weeks After Your Complaint**
Retaliation under Title VII requires: (1) protected activity -- making an internal complaint about race discrimination is protected opposing activity; (2) adverse employment action -- a PIP can constitute an adverse action if it is materially adverse, meaning it would dissuade a reasonable employee from complaining (Burlington Northern & Santa Fe Railway Co. v. White, 2006 -- the standard is broad and not limited to termination or demotion); and (3) causal connection between the protected activity and the adverse action. A PIP issued two weeks after a harassment complaint, with no prior negative performance history in 3 years, is almost textbook circumstantial retaliation evidence. The proximity in time (two weeks) plus the three-year clean record creates a strong inference of causal connection that courts have found persuasive in many cases.

---

### Your Rights in This Situation

**What the law generally provides:**
- Under Title VII (assuming your employer has 15+ employees), you have the
