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History of U.S. Employment Laws

A Quick History

Laws governing the relationship between employers and employees have changed dramatically over the past 200 years. Before 1938, employment in the United States was almost entirely “at-will” — employers could terminate an employee for any reason, including reasons that would be considered discriminatory today. During this era, there were no worker safety programs and no formal job protections.

The New Deal era brought the first major shift. The Fair Labor Standards Act (FLSA), passed in 1938, established the country’s first federal minimum wage and overtime standards. Around the same time, labor relations legislation gave employees the right to form and join labor unions.

The 20th Century

The Civil Rights Act of 1964 marked the next major turning point, extending workplace protection to employees facing discrimination and harassment based on race, color, religion, sex, and national origin. Over the following decades, protections expanded further: minorities and individuals with disabilities gained additional workplace rights, and new laws — including the Family and Medical Leave Act (FMLA) and various state leave-of-absence laws — began protecting employees’ ability to balance work and home life.

The 21st Century

The 21st century has seen continued expansion of 20th-century laws, including amendments to the Americans with Disabilities Act, along with entirely new legislation that has extended even more protection to employees.

Some Important Thoughts

Employment laws are generally designed to create equality in the workplace. The role of government in this system is twofold: to ensure all parties “play by the rules,” and to interpret the laws that have been written. Different courts and judicial districts can interpret the same law differently — part of why employment law can create complex legal challenges for employers, even when they believe they’re following the rules correctly.