Posted on: April 20, 2026                                                                                                  

Employers must comply with a myriad of complex and constantly changing federal, state and local laws and regulations governing the employment relationship. We’ve broken these requirements down into some key areas and provided more information on 17 problematic employment practices to avoid.

Hiring

X  1. Avoid failing to disclose pay ranges when required.

Several states and local jurisdictions require private sector employers to disclose the pay range for a position to an applicant or employee. These laws generally have one or more of the following requirements:

1. Employers must provide the salary range upon the request of an external/internal applicant.

2. Employers must provide the salary range to applicants automatically at a certain point in the hiring process (e.g., at the time a job offer is made).

3. Employers must include salary range information in any job posting.

Check your state and local laws for details.

X  2. Avoid seeking an applicant's salary history when prohibited.

Many states and cities have enacted laws that generally prohibit employers from asking applicants about their pay history. These laws are intended to help address pay discrimination, since the discriminatory pay practices of a previous employer could result in lower wages in a new job. Make sure you understand what, if any, restrictions apply to you.

X  3. Avoid asking about criminal history when off limits.

Many states and local jurisdictions have enacted laws that restrict employers from asking an applicant about their criminal background on application forms. Some go even further, restricting these types of questions until after the employer makes a conditional job offer and/or requiring employers to take certain steps before considering an individual’s criminal history. These restrictions are often referred to as "ban the box" or “fair chance” laws.

While there is no federal law specifically prohibiting employers from asking applicants if they've ever been convicted of a crime, the Equal Employment Opportunity Commission (EEOC) recommends employers avoid asking for this information on an application form. If employers do ask about convictions later in the selection process, the inquiries should be job-related and consistent with business necessity.

X  4. Avoid asking interviewees questions that are off-limits.

Interviews are critical for finding the right candidate for a job, but they must be conducted carefully and consistently in order to stay within the bounds of federal, state and local laws. Employers should avoid interview questions that are expressly prohibited by law, as well as other inquiries that may directly or indirectly reveal an applicant is a member of a protected group. For example, asking an applicant what year they graduated high school could elicit, or could be used to estimate, the applicant's age. If there are minimum age requirements for a job to comply with a law or for insurance purposes, you may ask whether the applicant meets those requirements.

Pay and overtime

X  5. Avoid failing to pay employees for rest breaks, training and travel.

Under the federal Fair Labor Standards Act and many state laws, employers must pay employees not only for time actually spent working, but also for certain nonproductive time, such as time spent on rest breaks, in training, or traveling for work. Make sure you understand and comply with federal and state rules on compensable time.

X  6. Avoid classifying employees as exempt from overtime based on job title.

An employee's job title doesn't determine whether they may be classified as exempt from overtime. And just because an employee receives a salary doesn't mean they aren't entitled to overtime.

Under the FLSA, to be classified as exempt from overtime, an employee must:

• Meet the minimum salary requirement (currently $684 per week for the professional, administrative and executive exemptions);

• Receive their full salary in any week they perform work, regardless of the quality or quantity of the work; and

• Meet certain primary duties criteria.

Several states have their own tests for overtime exemption, some of which have higher minimum salary requirements and/or duties tests that are more difficult to satisfy. Before classifying an employee as exempt from overtime, apply all applicable federal and state tests.

X  7. Avoid prohibiting employees from discussing their pay.

Section 7 of the National Labor Relations Act (NLRA) gives employees the right to act together, with or without a union, to improve wages and working conditions. Most employers are covered by the NLRA, regardless of whether their employees are unionized. The National Labor Relations Board (NLRB), which enforces the NLRA, and many courts have found that rules that prohibit employees from discussing their pay (or other terms and conditions of employment) violate the NLRA. Some states also have enacted laws protecting employees who discuss their pay with co-workers.

X  8. Avoid averaging hours over two workweeks when determining whether overtime is due.

Under the FLSA, non-exempt employees must receive 1.5 times their regular rate of pay for all hours worked over 40 in a workweek (some states require overtime in additional circumstances and at a different rate). The FLSA doesn’t allow employers to average an employee's work hours over two or more workweeks. Therefore, if an employee works 50 hours in one workweek, the employee is entitled to overtime for that workweek even if the employee works 30 or fewer hours in the following/preceding workweek.

X  9. Avoid incorrectly calculating an employee's regular rate of pay.

Under the FLSA, an employee's regular rate includes not only their hourly rate but also the value of nondiscretionary bonuses, shift differentials, and certain other forms of compensation. Failing to include these other types of compensation can result in inaccurate overtime pay calculations.

X  10. Avoid failing to pay 'unauthorized' overtime.

If a non-exempt employee has worked overtime, they must be paid an overtime premium, regardless of whether the overtime was pre-authorized. A policy that no overtime work is permitted unless authorized in advance doesn't relieve the employer of this requirement. Employers may subject the employee to disciplinary measures for working unauthorized overtime, but in no case may the employer withhold overtime pay.

Leave

X  11. Avoid assuming leave laws don't apply to small employers.

States and local jurisdictions are increasingly requiring employers of all sizes to provide leave to employees, including paid sick leave and paid family and medical leave. Make sure you understand which leave laws apply to you.

X  12. Avoid counting job-protected leave against an employee.

Many federal, state and local laws give employees the right to job-protected leave and prohibit retaliation against employees who exercise their rights to take leave. If an employee takes protected leave under one of these laws, the employer may not count this time against the employee when assessing their attendance or performance. Review your attendance and performance practices to ensure they aren't violating these laws.

X  13. Avoid requiring a doctor's note for every sick day when prohibited.

Most leave laws allow employers to ask employees for reasonable documentation of the need for leave. However, many laws do have restrictions. For example, some paid sick leave laws prohibit employers from requesting documentation unless the employee has taken sick leave for more than three consecutive days. Even in the absence of a restriction, consider what, if any, documentation would be reasonable, and apply your policy consistently.

Recordkeeping

X  14. Avoid keeping all records in an employee's personnel file.

Some laws specifically call for certain records to be kept in a separate confidential file. The following information should NOT be kept in personnel files:

• Any information reflecting an employee's membership in a protected group, such as their voluntary self-identification of gender, ethnicity or race, veteran's status or as an individual with a disability.

• Any document relating to an employee's health or medical condition, including doctors’ notes and medical certification forms, drug test results, and leave of absence requests based on an employee's injury or disability.

• Form I-9 and supporting identity and work authorization documents. It is a best practice to store all I-9 forms together in one file, since they must be produced promptly following an official request.

• Records concerning workplace investigations (written statements from all relevant parties, interview notes, final investigation report, etc.) should be kept in a separate workplace investigation file.

X  15. Avoid asking for a specific document for the Form I-9.

All employers must complete and retain a Form I-9 for each employee at the time of hire to verify their identity and work authorization. The employee has the right to choose which document(s) to present, provided they are on the I-9's List of Acceptable Documents (see the last page of the form). The employer can't dictate which specific documents the employee needs to show to verify employment eligibility.

Termination

X  16. Avoid withholding final pay until company property is returned.

Federal law requires employees to receive their final pay by the next scheduled payday. Many states have shorter timeframes, such as at the time of termination. Employers must meet final pay deadlines, regardless of whether the employee has returned company property.

X  17. Avoid failing to pay out unused vacation time when required.

Whether the employee’s final paycheck must include pay for earned but unused vacation time depends on the state and company policy. States generally handle unused vacation and paid time off in one of three ways:

• Employers must pay employees for unused vacation time at the time of separation;

• Employers can exclude unused vacation time from final pay if they have a written policy that explicitly states employees will not be paid for any accrued, unused time upon separation; or

• Employers can exclude unused vacation time from final pay, unless they have a policy that says otherwise.

Check your state law to determine which one applies to you.

Conclusion

These are just some of the areas in which employers can run afoul of the law. Make sure you understand all of the laws and regulations that apply to your business and ensure that your policies and practices comply.