Whether you’re hiring your next employee or refining your HR policies, understanding the nuances of employment law is a necessity.
While we at Purple Ink are experienced in ensuring organizations are compliant with employment laws, we are not lawyers! We recommend consulting your employment law attorney, too.
In this article:
- Independent Contractors vs. Employees
- Family and Medical Leave Act (FMLA)
- Americans with Disabilities Act (ADA)
- Equal Employment Opportunity Commission (EEOC)
- Marijuana and Work
- Navigating Employment Litigation
- Employment Laws Continue to Evolve
Independent Contractors vs. Employees
Is your organization correctly identifying individuals performing services for you as either employees or independent contractors?
Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.
To determine whether someone should be classified as an employee or a contractor, there are three main rules.
- Behavioral. If your organization has the right to direct and control the work, the worker is an employee. (more details on this rule here)
- Financial. If your organization has the right to control the economic aspects of the worker’s job, like how they’re paid, whether expenses are reimbursed, etc., they are an employee. (more details on this rule here)
- Type of Relationship. If your organization and the worker perceive your relationship as that of an employer and employee (for example, you offer them employee-type benefits like insurance and PTO), they’re an employee. (more details on this rule here)
If the IRS finds that your organization is misclassifying employees as independent contractors, you will need to pay back-taxes as well as penalties for income taxes, Social Security, Medicare, and unemployment taxes. Depending on the position, you may also need to provide the newly designated employee with their rightful benefits. It’s never an issue to classify someone as an employee.
Family and Medical Leave Act (FMLA)
The Family and Medical Leave Act (FMLA) is a law that guarantees eligible employees to be able to take leave with no threat of job loss for up to 12 work weeks. The leave may be taken consecutively or leave may be intermittent. Organizations with more than 50 employees must comply with FMLA.
To be eligible for FMLA leave, employees must have worked for the employer for a minimum of 12 months and 1,250 hours during the last 12 months, and have:
- A serious medical condition; or,
- An immediate family member with a serious medical condition; or,
- The birth or adoption of a child; or,
- A spouse, child, or parent called to active military duty
An employee should get FMLA leave paperwork if:
- They disclose one of the eligibility conditions listed above (pregnancy, medical condition, etc.)
- You learn of an eligibility condition through any other means, such as:
- An emergency occurring
- Another employee learning of the condition and disclosing it
- The employee being absent 3+ days in a row
- The employee having an overnight stay in a hospital or other medical facility
Always notify HR immediately of any FMLA request. If you’re unsure whether an employee should get FMLA leave paperwork, talk to HR.
When the period of leave ends, usually there is no defined policy and multiple things can happen depending on the specific situation. In the majority of cases where an employee is unable to return to work at or around 12 weeks of leave, you may need to let them go. Knowing ahead of time how you will handle these situations, adequately preparing, and remaining transparent throughout the process will make these sensitive matters easier and help all parties involved stay respectful.
Americans with Disabilities Act (ADA)
The Americans with Disabilities Act (ADA) protects qualified employees and job candidates from disability-related discrimination and requires covered employers to provide reasonable accommodations when needed. The law applies to employers with 15 or more employees and covers both physical and mental impairments that substantially limit major life activities.
One of the biggest misconceptions about ADA accommodations is that they are always expensive or difficult to implement. In reality, many accommodations are simple, low-cost adjustments that help employees perform the essential functions of their jobs. Examples may include modified schedules, additional breaks, adaptive equipment, or adjustments to workplace processes.
When an employee requests assistance or an employer becomes aware that an accommodation may be needed, the organization should begin what’s known as the interactive process. This collaborative conversation helps identify potential accommodations and determine whether they are reasonable and effective. Employers should avoid making assumptions about what can or cannot be accommodated before gathering information and exploring options.
As workplace conversations around mental health continue to increase, employers should also recognize that certain mental health conditions may qualify for ADA protection. Creating an environment where employees feel comfortable discussing workplace needs can help organizations stay compliant while supporting employee well-being.
Equal Employment Opportunity Commission (EEOC)
The Equal Employment Opportunity Commission (EEOC) enforces federal laws that make it illegal to discriminate against a job applicant or an employee because of the person’s race, color, religion, sex, national origin, age, disability, or genetic information. Most employers with at least 15 employees are covered by EEOC laws.
Employers should also recognize that employment discrimination risks continue to evolve. As organizations increasingly use technology in recruiting and hiring, federal agencies have expressed growing interest in how artificial intelligence, automated screening tools, and other technologies may unintentionally create barriers for protected groups. Employers should regularly review hiring practices and selection processes to help ensure fair and consistent treatment of applicants and employees. Additionally, age discrimination remains an important area of enforcement focus as many experienced workers remain active in the workforce longer than previous generations.
Marijuana and Work
As marijuana legalization continues to expand across states, employers face growing complexity in balancing compliance with federal law, state regulations, and workplace safety. While some states protect off-duty marijuana use, federal law still classifies it as a Schedule I drug, meaning employers can legally prohibit its use and enforce drug-free workplace policies.
However, the landscape is shifting. Employers must now consider whether their policies align with state-specific protections, especially in cases involving medical marijuana. For example, some states require reasonable accommodations for registered medical marijuana users, unless doing so would pose a safety risk or violate federal funding requirements.
Clear communication is key. Employers should ensure their drug policies are up-to-date, consistently enforced, and clearly communicated to employees. They should also be prepared to navigate accommodation requests thoughtfully, particularly when disabilities are involved.
Ultimately, staying informed and proactive helps organizations maintain compliance while fostering a fair and inclusive workplace.
Navigating Employment Litigation
Employment litigation can be costly—not just financially, but in terms of time, morale, and reputation. One of the most effective ways to reduce risk is by fostering a workplace culture grounded in fairness, consistency, and clear communication. Many lawsuits stem from employees feeling blindsided or unheard, especially when disciplinary actions or terminations occur without documented feedback or prior conversations.
Employers should prioritize thorough documentation, especially when performance issues arise. This includes maintaining records of coaching conversations, performance reviews, and any corrective actions taken. It’s also critical to ensure that policies are applied consistently across the organization to avoid claims of discrimination or favoritism.
Often, litigation risk increases when leaders are unaware of legal boundaries or fail to follow internal procedures. Equipping managers with the tools and knowledge to handle sensitive situations—like accommodations, complaints, or terminations—can make a significant difference.
Ultimately, proactive communication, consistent practices, and strong documentation aren’t just legal safeguards—they’re pillars of a respectful and inclusive workplace.
Employment Laws Continue to Evolve
One challenge for employers is that compliance is not a one-time task. Federal, state, and local employment laws change regularly, and organizations must continually review policies to stay current. Changes in areas such as pregnancy accommodations, paid leave requirements, employee classification, restrictive covenants, and workplace protections can create new obligations for employers.
Organizations with remote employees should pay particular attention to state-specific requirements, as employment laws are often based on where employees work rather than where the company is headquartered. Periodic policy reviews, manager training, and consultation with legal counsel can help employers identify risks before they become costly compliance issues.
Staying informed doesn’t require reading every legal update. Reliable resources such as the Department of Labor, EEOC, SHRM, employment law firms, and trusted HR publications can help organizations monitor important changes.
Do you need help with compliance? Learn more about our consulting services here! Send us a message here, and we’ll guide you to the right path.