Most Common Breach of Employment Law Businesses Make

Many business owners breach employment laws a lot of times. Lawsuits against them are hardly rare. However, some breaches happen more often than others.

Breach of employment law article image 1111nnWe have carefully outlined common breach of employment law by businesses below.

Employment discrimination

Many business owners breach employment laws that relate to discrimination, retaliation, and harassment. Most employees are protected from acts of harassment and discrimination in the workplace by federal anti-discrimination laws, which include, the Civil Rights Act, which bars employers of labor from discriminating against employees based on race, color, religion, national origin, and sex.

There is also the Pregnancy Discrimination Act that prevents business owners from discriminating against a pregnant woman because of any other related conditions. Unfortunately, most business owners don’t obey these laws unless an employment lawyer or consultant is brought in. According to the employment and customer team at, the Equal Pay Act requires business owners to pay both men and women the same weekly pay if they perform the same task in a given workplace.

The Age Discrimination in Employment Act also prohibits business owners from discriminating against workers aged 40 and above because of their age. The Disabilities Act (ADA), prohibits discrimination against disabled persons who are qualified.

Despite all of these laws that prohibit discrimination, it’s quite alarming that many employers still breach this employment law.

Wrongful termination

This means firing an employee or worker in violation of the law of the land. A lot of claims regarding wrongful termination against business owners are based on allegations of employment discrimination. For instance, if a 45-year-old employee is fired, the employee can subsequently file a lawsuit for wrongful termination against her employer.

Employees must know the law so that they can always fight for their rights. A lot of employers also breach this employment law, claiming several reasons, including low productivity due to the old age of the employee.

Violation of wage law

Several lawsuits have been filed against business owners based on allegations of violation of federal, state, or local wage law. Collectively, these laws are known as wage and hour laws.

The Federal Labor Standards Act sets the federal minimum wage. This federal law governs overtime pay, child labor, and record-keeping. The law creates two categories of employees: exempt worker and nonexempt worker. Nonexempt employees are eligible to be paid for overtime while exempt workers are not eligible to be paid for overtime. Many municipalities and states have passed their laws on overtime pay and wages.

Many businesses fail to pay the minimum wage or overtime pay as stipulated in the FLSA. Some business owners also avoid paying for overtime by classifying them as independent contractors – a person contracted to perform a task for another entity as a non-employee.


Some employees file suits against businesses based on torts. This is a violation of the civil rights of a person. Torts that can lead to lawsuits against employers are divided into two: the unintentional or negligence torts and intentional torts.

Negligence enacted by an employer or employee can result in an accident that injures a worker or damages property. The injured person may sue the employer or the worker for bodily injury or damage to property. Intentional torts include wrongful eviction and false arrest that can also cause lawsuits against employers.

General liability policy may cover claims against an employer for property damage and bodily injury. Several businesses commit this breach of employment laws in the country, and workers are never tired of filing lawsuits against them.

Breach of contract

Breach of employment law article image 111vv1nnBusinesses generally breach contractual agreements between them and the employee. This results in the worker filing a lawsuit against the business. An employer breaches an employment contract when he or she refuses to comply with its contractual terms.

A typical example is when Dickson Electric, a contractor, signs a contractual agreement with John Duck Builders, a general contractor. In the agreement, Dickson Electric agrees to supply and install lighting in a particular building that John Duck builders are constructing. Dickson refuses to work on the agreed project, so John Duck sues the subcontractor for a contract breach.

Several business owners also breach contractual agreements with workers regarding remuneration and many other employment terms.

The employer can sue an employee for breach of contract. For example, the employer could sue the employee or, if there is a clause in the employee’s contract allowing this, there is an attachment of earnings order made by the court or it is allowed by statute, the employer can withhold payments due to the employee, to compensate the employer for any loss flowing from the employee’s breach of contract.

Aside from employees suing employers, Employers may sue an employee if such employee resigns without giving working notice and the employer suffers a financial loss as a result of the employee’s sudden resignation.


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