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)
- Equal Employment Opportunity Commission (EEOC)
- Marijuana and Work
- Navigating Employment Litigation
- More Employment Law Tips
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.
For more on FMLA, check out this episode of The JoyPowered® Workspace Podcast:
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.
For more on the EEOC, check out this episode of The JoyPowered® Workspace Podcast:
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.
To learn more, listen to this episode of The JoyPowered® Workspace Podcast:
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.
To learn more about employment litigation, listen to this episode of The JoyPowered® Workspace Podcast:
More Employment Law Tips
In this episode of The JoyPowered® Workspace Podcast, we answer listeners’ questions about employment laws.
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.