Once you’ve entered the US market, you need to be aware of several important regulations to ensure compliance and fair hiring practices.

Why it’s important to understand employment regulations in the US

1. Compliance – failure to comply with employment laws and regulations can result in costly legal penalties, lawsuits, and reputational damage for recruitment companies.
2. Protection of reputation – violations of employment laws can tarnish a recruitment company’s reputation, leading to loss of trust from clients, candidates, and the public.
3. Client expectations – clients expect recruitment companies to follow best practices and legal requirements when sourcing and hiring candidates on their behalf.

What are some key regulations in the US to familiarize yourself with?

1. Title VII of the Civil Rights Act of 1964

It prohibits discrimination based on race, color, religion, sex, or national origin in all aspects of employment, including recruitment, hiring, and promotion.

2. Equal Employment Opportunity Commission (EEOC) Guidelines

These guidelines provide further detail and interpretation of Title VII and other anti-discrimination laws, offering guidance on how to avoid discriminatory practices in recruitment and hiring.

3. Americans with Disabilities Act (ADA)

Effective as of July 1990, the ADA prohibits discrimination against qualified individuals with disabilities in all employment practices, including recruitment and hiring. Recruiters must make reasonable accommodations for applicants with disabilities during the hiring process.

4. Age Discrimination in Employment Act (ADEA)

This prohibits discrimination against individuals who are 40 years of age or older in employment decisions, including recruitment and hiring.

5. Fair Credit Reporting Act (FCRA)

If recruiters conduct background checks or use consumer reports for hiring decisions, they must comply with the FCRA, which regulates the collection, dissemination, and use of consumer information, including credit reports and criminal background checks.

6. Immigration Reform and Control Act (IRCA)

This requires employers to verify the identity and employment eligibility of all employees hired after November 6, 1986, by completing Form I-9.

7. Family and Medical Leave Act (FMLA)

This grants eligible employees up to 12 weeks of unpaid leave for certain family and medical reasons and requires employers to maintain health benefits during the leave and restore the employee to their same or equivalent position upon return.

8. Fair Labor Standards Act (FLSA)

This establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments. Recruiters must ensure compliance with FLSA regulations when determining wages and hours for employees.

9. State and Local Employment Laws

In addition to federal laws, recruiters must be aware of state and local employment laws, which may include additional protections or requirements for employees. These laws can vary significantly from state to state and even within municipalities.

10. Occupational Safety and Health Administration (OSHA) Regulations

These regulations require employers to provide a safe and healthy work environment for employees, including proper training, hazard communication, and recordkeeping.

You can stay compliant by working with a specialist EOR – get in touch with the team today.