SHRM-CP Exam - U.S Laws and Regulations

The Omnibus Budget Reconciliation Act (OBRA) of 1993

reduced the compensation limits in qualified retirement plans, making it more challenging for high-earning employees to maximize their retirement savings within traditional tax-deferred plans.

The Pension Protection Act (PPA) (2006)

focused primarily on pension reform, increasing funding requirements for defined benefit plans and improving transparency in retirement plan reporting

The Portal-to-Portal Act (1947)

clarified compensable work time under the Fair Labor Standards Act (FLSA), specifically addressing pre and post-shift activities

Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)

welfare reform law that changed eligibility for public assistance programs

The Family and Medical Leave Act (FMLA) (2010)

U.S. law providing eligible employees with up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons, like childbirth, adoption, or a serious health condition, while maintaining their health benefits. It applies to public agencies, schools, and private companies with 50+ employees and requires the employee to have worked for the employer for at least a year and meet hour requirements. FMLA ensures job security and allows employees to manage work-life balance during significant life events; specifically prohibits an employee's supervisor from making contact with an employee's medical provider. Eligibility requires at least 12 months of employment and 1,250 hours worked in the past year.

The Sarbanes-Oxley Act (SOX) (2002)

enacted to enforce strict oversight on publicly held companies, ensuring greater corporate transparency and accountability in financial reporting. primarily applies to public companies, certain provisions extend to privately held businesses, particularly those involved in securities fraud or preparing for public acquisition

Fair and Accurate Credit Transactions Act (FACTA) 2003

provides an exemption for employers from notifying employees when they are under investigation for workplace misconduct, specifically related to suspected fraud, misconduct, or a violation of company policies. ensures investigation can be conducted without alerting suspects prematurely, preserving integrity of the process

Immigration Reform and Control Act (IRCA)

requires employers to verify the identity and employment authorization of individuals hired to work in US (complete I-9 form)

-resident or nonresident

-immigrant or nonimmigrant

-documented or undocumented

Drug-Free Workplace Act (1988)

organizations that receive federal contracts or grants valued at $100k+ must maintain a drug-free workplace policy - employee awareness programs and disciplinay actions for violators

The Lanham Act (Trademark Act of 1946)

governs trademarks, service marks, and unfair competition. establishes guidelines for registering, maintaining, and enforcing trademarks to prevent unauthorized use and consumer confusion

Lilly Ledbetter Fair Pay Act

signed into law by President Obama in 2009 - amended federal law by stating that each discriminating paycheck resets to 180-day period for filing a claim, effectively expanding employees' ability to challenge unfair pay practices

The Labor-Management Reporting and Disclosure Act (LMRDA) (1959)

aka Landrum-Griffin Act, requires unions to provide annual financial reports to the Department of Labor to promote transparency and accountability in union financial activities

The Davis-Bacon Act (1931)

requires contractors and subcontractors working on federally funded or assisted construction contracts over $2,000 to pay laborers ad mechanics wages and fringe benefits at rates that are at least equal to those prevailing in the area as determined by the Department of Labor

The Norris-LaGuardia Act (1932)

strengthened workers' rights by restricting the ability of federal courts to intervene in labor disputes through injunctions against peaceful strikes, picketing, and boycotts. also made "yellow-dog" contracts - agreements where employee promise not to join a union - unenforceable

The Uniformed Services Employment and Reemployment Rights Act (USERRA) (1994)

federal law that protects the employment and reemployment rights of military service members. ensures that individuals who leave their civilian jobs to serve in the military can return to their jobs with the same status, pay, and benefits as if they had never left

The Pension Protection Act (PPA) (2006)

improve funding of defined benefit pension plans and enhance transparency. requires employers with underfunded pension plans to pay increased premiums to the Pension Benefit Guaranty Corporation (PBGC), which insures private-sector retirement benefits by holding plan sponsors accountable for adequately funding their plans

The Health Information Technology for Economic and Clinical Health Act (HITECH) (2009)

requires entities handling personal health records to notify individuals if their info is disclosed due to a data breach. was enacted to strengthen privacy and security protections under the Health Insurance Portability and Accountability Act (HIPAA) and ensures transparency in cases where patient data is compromised

The Electronic Communication Privacy Act (ECPA) (1986)

establishes rules for access, use, disclosure, interpretation, and privacy protection of electronic communication, including emails, phone convos, and data transmissions. protects against unauthorized interception and access to electronic communication and provide civil and criminal penalties for violations

IRS Intermediate Sanctions (2002)

penalties imposed by RS on non-profit organizations to prevent excessive compensation and benefits to executives, ensuring that pay is reasonable and aligned with market standards

Consolidated Omnibus Budget Reconciliation Act (COBRA)

ensures employees who lose their jobs have the option to continue their group health insurance coverage for a limited period, typically up to 18 months, as long as they pay premiums

Immigration and Nationality Act of 1952 (INA)

categorizes non-citizens based on:

-resident vs. nonresident

-immigrant vs. nonimmigrant

-documented vs undocumented

The Copyright Act (1976)

protects original works for authorship, including written content, from unauthorized use. content writer must understand this law to ensure their work does not infringe on others' copyrights and to protect their own original creations. this law covers various aspects, such as reproduction rights, derivative works, and distribution

The Securities and Exchange Act (1934)

established the Securities and Exchange Commission (SEC) to regulate the trading of securities, such as stocks/bonds in secondary market. designed to maintain fair and efficient markets and protect investors by enforcing laws against fraud, insider trade, and other financial misconduct

The Wagner-Peyser Act (1933)

created a nationwide system of public employment offices, aka the Employment Service, operating under the U.S Department of Labor's Employment and Training Administration. assist job seekers by providing access to job posts, career counseling, resume assist and reemployment services

The Consumer Credit Protection Act (CCPA)

safeguards employee from termination due to wage garnishment for a single debt. protection does not extend if multiple garnishment in place

Internal Revenue Code (IRC) Section 127

a provision in U.S tax code that allows employees to offer up to $5,250 annually in educational assistance to employees as a tax-free benefit, enhancing recruitment and retention efforts

FAA Modernization and Reform Act (2012)

amended the Railway Labor Act, introducing changes to union certification election process in the railroad and airline industries, including increased oversight of the National Mediation Board - the agency responsible for regulating labor relations in these industries, and introduced changes such as requiring a majority of eligible employees to vote in favor of union representation

The National Labor Relations Act (NLRA) (1935)

U.S. act that protects and encourages the growth of the union movement. The act established workers' rights to organize and bargain collectively with employers.; also known as Wagner Act.

-governs private-sector labor relations

Labor Management Reporting and Disclosure Act (LMRDA)

focuses on financial transparency and democracy with labor orgs rather than certification elections

The Worker Adjustment and Retraining Notification Act (WARN) (1988)

requires employers to provide notice before mass layoffs or plant closings

The Fair and Accurate Credit Transactions Act (FACT)

requires certain businesses, particularly financial institutions and creditors, to establish a written identity theft prevention program

The Clayton Act (1914)

legislation that modified the Sherman Anti-Trust Act by prohibiting mergers and acquisitions that would lessen competition. also prohibited a single person from being a director of two or more competing companies. also restricted the use of injunctions against labor and legalized peaceful strikes, picketing, and boycotss

The Copeland "Anti-Kickback" Act (1934)

This act precludes a federal contractor or subcontractor from inducing an employee to give up any part of his or her wages to the employer for the benefit of having a job.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (2010)

law that offers a very wide range of mandates affecting all federal financial regulatory agencies and most parts of the nation's financial services industry. includes a non-binding vote for shareholders on executive compensation, golden parachutes, and return of executive compensation based on inaccurate financial statements. requirements to report CEO pay compared to the average employee compensation and provision of financial rewards for whistleblowers.

The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) (2001)

modifications to the Internal Revenue Code for adjusting pension vesting schedules, increasing retirement plan limits, permitting pre-tax catch-up contributions by participants over age of 50 in certain plans, and changing distribution and rollover rules

The Employee Polygraph Protection Act (1988)

Federal law that generally prevents employers from using polygraph (lie detector) tests, either for pre-employment screening or during the course of employment, with certain exemptions.

The Employee Retirement Income Security Act (ERISA) (1974)

governs how pension plans are managed once they are established. establishes uniform minimum standards to ensure that employee benefit plans are established and maintained in a fair and financially sound manner. also protects employees covered by a pension plan from losses in benefits due to job changes, plant closings, bankruptcies, or mismanagement, and it protects plan beneficiaries. mostly covers employers engaged in interstate commerce; public-sector and churches are not subject to ERISA

The Equal Pay (EPA) (1963)

Amendment to FLSA and enforced by Equal Employment Opportunity Commission (EEOC). prohibits employers from discriminating o the basis of sex by paying wages to employees at a rate less than the rate paid ot employees of the opposite sex for equal work on jobs requiring substantially equal skill, effort, and responsibility, and performed under similar working conditions.

The Fair Credit Reporting Act (FCRA) (1970)

Required employers to notify candidates that credit reports may be obtained; required written authorization by the candidate and that the employer provide a copy of the report to the candidate before taking an adverse reaction

The Fair Labor Standards Act (FLSA) (1938)

This federal law covers employers engaged in interstate commerce, regulates child labor, maximum hours, and minimum wages. The law, among other things, specifically prohibits children under the age of 14 from most types of work, making exceptions for, e.g., lawn care, newspaper delivery, and entertainment, and restricts the employment of children between the ages of 15-18 in various ways. It also requires employers to pay employees who agree to work more than 40 hours per week no less than one and a half (1½) times their regular pay for all hours over 40.

The Foreign Corrupt Practices Act (FCPA) (1997)

Prohibits American companies from making bribery payments to foreign officials for the purpose of obtaining or keeping business.

The Labor-Management Relations Act (LMRA) (1947)

Also known as the Taft-Hartley Act, this law allows state right-to-work laws, which makes it illegal to require union membership for continued employment. The law prohibits certain unfair union practices, including a closed shop (which requires union membership as a condition of employment), a union shop (which requires union membership as a condition of continued employment), a union's refusal to bargain with an employer, certain types of picketing, and featherbedding (hiring more employees than necessary).

The Mine Safety and Health Act (MSHA) (1977)

Employees must be provided with protective equipment.

Employers engaged in mining operations must inspect their worksites and document the results for record keeping

MSDA has a team of federal inspectors that conduct onsite audits. Violations are 1,00 per day

The National Industrial Recovery Act (1933)

This act authorized the President of the United States to regulate industry and permit cartels and monopolies in an attempt to stimulate economic recovery, and established a national public works program.

The Needlestick Safety and Prevention Act (2000)

Mandated recordkeeping for all needlestick and sharps injuries; required employee involvement in developing safer devices

The Occupational Safety and Health Act (OSHA) (1970)

US federal agency within the Department of Labor whose purpose is to ensure safe and healthful working conditions for American workers by setting and enforcing standards, and by providing training, outreach, education, and assistance. It achieves this by establishing safety regulations, conducting inspections, issuing citations, and empowering workers with rights to a safe workplace free from hazards

The Railway Labor Act (1926)

federal law guaranteeing collective bargaining/organize into labor unions for railroad employees and now airline employees

The Rehabilitation Act (1973)

replaced Vocational Rehabilitation Act; Extended protection to those with physical or mental handicaps

The Retirement Equity Act (REA) (1984)

Provides certain legal protections for spousal beneficiaries of qualified retirement programs. prohibits changes to retirement plan elections, spousal beneficiary designations, and inservice withdrawals without consent of a spouse

The Revenue Act (1978)

Adds two important sections to the Tax Code relevant to employee benefits: Sections 125 and 401(k)

The Service Contract Act (SCA) (1965)

Applying to federal contractors (and subcontractors) offering goods and services to government, calls for payment of prevailing wages and benefit requirements to all employees providing service under the agreement

The Sherman Anti-Trust Act (1890)

first federal action against monopolies; the law gave government power to regulate combinations "in restraint of trade." Until the early 1900s, however, this power was used more often against labor unions than against trusts.

The Small Business Job Protection Act (SBJPA) (1996)

law that increased minimum wage levels and provided some tax incentives to small business owners to protect jobs and increase take-home pay. amended portal-to-portal act for employees who use employer-owned vehicles + created SIMPLE 401k retirement plan to make pension plans easier for small businesses

The Social Security Act (1934)

Established the foundation for federal welfare programs, provided financial assistance to the elderly, unemployed, and disadvantaged. Later amendments introduced Medicare and Medicaid in 1965.

The Tax Reform Act (1986)

simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences

The Taxpayer Relief Act (1997)

Passed to create new savings programs called Roth IRAs and Education IRAs, allowing individuals to achieve a better tax position through these tools

The Unemployment Compensation Amendments Act (UCA) (1992)

established 20% as the amount to be withheld from payment of employee savings accounts when leaving an employer and not placing the funds directly (rolling over) into another tax-approved IRA or 401k

The Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) (1974)

U.S. law that prohibits job discrimination against protected veterans (Vietnam era, disabled, recently separated, wartime) and requires federal contractors and subcontractors to take affirmative action to recruit, hire, and promote them. VEVRAA mandates that contractors list job openings with state workforce agencies and include equal opportunity clauses in contracts, enforcing fair employment practices for veterans and promoting their economic stability.

The Walsh-Healey Act (Public Contracts Act) (1936)

Guarantees prevailing wages to employees of government contractors with contracts of $15,000 each

The Work Opportunity Tax Credit (WOTC) (1996)

federal tax credit for employers who hire individuals from specific groups facing employment barriers. The aim is to help these individuals gain experience and move towards self-sufficiency, while reducing the employer's federal income tax liability. The WOTC is available for eligible employees

Labor-Management Reporting and Disclosure Act (LMRDA) (1959)

law provides for the reporting and disclosure of certain financial transactions and administrative practices of labor organizations and employers to prevent abuses in the administration of trusteeships by labor organizations and to provide standards with respect to the election of officers of labor organizations

Americans with Disabilities Act (ADA) (1990)

Protects individuals with disabilities from being discriminated against in the workplace.

Prohibits discrimination based on disability in all employment practices.

Employers must take steps to accommodate individuals covered by the act.

Civil Rights Act (Title VII) (1964)

prohibits discrimination in employment on the basis of race, religion, color, sex, or national origin

The Civil Right Act (1991)

Any party in a civil suit in which punitive or compensatory damages are sought may demand a jury trial.

The Equal Employment Opportunity Act (EEOA) (1972)

Amends Title VII of Civil Rights Act of 1964; increases enforcement powers of EEOC; adds employees of state and local government and educational institutions.

The Genetic Information Nondiscrimination Act (GINA) (2008)

U.S. federal law that protects individuals from genetic discrimination in health insurance and employment, prohibiting insurers from denying coverage or charging more based on genetic predispositions and barring employers from using genetic information in hiring, firing, or promotion decisions. GINA defines genetic information broadly to include family medical history, genetic tests, and participation in genetic services, also requiring confidentiality and restricting its acquisition and use by employers and insurers

The Pregnancy Discrimination Act (PDA) (1978)

Federal law that amended Title VII of the Civil Rights Act of 1964 by expanding the definition of sex discrimination to include discrimination based on pregnancy.

Uniform Guidelines on Employee Selection Procedures (1976)

issued by U.S. federal agencies, provide a single set of principles for employers to ensure selection processes (like tests, interviews, and application reviews) don't discriminate based on race, color, sex, religion, or national origin, promoting equal employment opportunity (EEO) and setting standards for validation, adverse impact (using the Four-Fifths Rule), and documentation of fairness in hiring, promotion, and other employment decisions

The Age Discrimination in Employment Act (ADEA) (1967)

U.S. labor law that prohibits employment discrimination against people 40 years of age or older, covering aspects like hiring, firing, pay, promotions, training, and benefits. Enforced by the Equal Employment Opportunity Commission (EEOC), it applies to employers with 20 or more employees and ensures equal opportunity, preventing age-based bias in all employment conditions and prohibiting age-related job ad preferences.

The American Recovery and Reinvestment Act (ARRA) (2009)

a massive U.S. economic stimulus package, around $831 billion, signed by President Obama to counter the Great Recession by creating jobs, saving existing ones, and investing in infrastructure, energy, education, and healthcare. Key provisions included tax relief, aid to states (like Medicaid expansion), unemployment benefits, and major investments in smart grid technology, transportation, and health information technology (HITECH) to modernize systems and support the economy

The Older Workers Benefits Protection Act (OWBPA) (1990)

amended the Age Discrimination in Employment Act (ADEA) to protect workers 40 and older from age-based discrimination in employee benefits and require strict rules for waiving ADEA rights, especially in group layoffs or early retirement plans, ensuring benefits are equal or cost-equivalent to younger workers and preventing pressure to sign away age discrimination claims without adequate information and consideration.

Executive Order 11246 - Affirmative Action (1965)

signed by President Lyndon B. Johnson in 1965, mandated affirmative action for federal contractors, requiring them to proactively ensure equal employment opportunity and prohibit discrimination based on race, color, religion, and national origin, with later amendments adding sex, later evolving to include protected categories like sexual orientation and gender identity

The Mental Health Parity Act (MHPA) (1996)

Requires health insurance issuers and group health plans to adopt the same annual and lifetime dollar limits for mental health benefits as for other medical benefits.

The Mental Health Parity and Addiction Equity Act (MHPAEA) (2008)

a federal law requiring group health plans and insurers to provide mental health (MH) and substance use disorder (SUD) benefits with the same level of coverage as medical/surgical (M/S) benefits, preventing more restrictive financial requirements (like higher co-pays) or treatment limitations (like fewer visits/days) for MH/SUD care compared to physical health care. It ensures equal access by prohibiting discriminatory limits and requiring similar cost-sharing, visit caps, and criteria for medical necessity, extending prior parity laws to include substance use disorders and strengthening overall protections

The National Defense Authorization Act (2008)

Provides additional FMLA leave for military families, expanding FMLA to include employees caring for an injured service member as well as those who have a family member called to active duty.

The Patient Protection and Affordable Care Act (PPACA) (2010)

comprehensive U.S. healthcare reform aiming to increase insurance coverage, affordability, and quality by expanding Medicaid, offering subsidies, creating insurance marketplaces, and establishing new rules for insurers, like covering pre-existing conditions and allowing young adults on parents' plans until age 26. Nicknamed "Obamacare," it sought to lower costs, reduce the uninsured rate, and provide guaranteed essential benefits, becoming a significant overhaul of the American healthcare system

The Civil Service Reform Act (1978)

law that replaced the Civil Service Commission with the Office of Personnel Management and the Merit Systems Protection Board. These agencies are responsible for enforcing existing civil service laws, coordinating the testing of applicants, setting up pay scales, and appointing people to federal jobs.

The Congressional Accountability Act (1995)

Requires that any federal employee relations legislation enacted by Congress applies to the employees of Congress as well.

The False Claims Act (1863)

aka "Lincoln Law," is a U.S. federal law enacted during the Civil War to combat fraud against the government, allowing citizens to sue on the government's behalf and receive a share (15-30%) of recovered funds, primarily targeting contractors overcharging or supplying faulty goods, and it remains the government's key tool against fraud in programs like Medicare and defense

The Homeland Security Act (2002)

landmark U.S. law, passed after the 9/11 attacks, that created the cabinet-level Department of Homeland Security (DHS) by merging 22 existing federal agencies to centralize national security efforts, focusing on preventing terrorism, securing borders, coordinating disaster response, and enhancing intelligence sharing to protect the American homeland (E-Verify system resides here)

The Privacy Act (1974)

The Privacy Act requires that agencies give the public notice of their systems of records by publication in the Federal Register. The Privacy Act prohibits the disclosure of information from a system of records absent the written consent of the subject individual, unless the disclosure is pursuant to one of twelve statutory exceptions.

The USA PATRIOT Act (2001)

Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism

-U.S. law passed shortly after the 9/11 attacks, expanding government surveillance and law enforcement powers to combat terrorism, allowing for easier wiretapping, data access (like phone records, email), and information sharing between agencies, while also increasing penalties for terror-related crimes. It aimed to update laws for the digital age, breaking down barriers between intelligence and criminal investigators, but drew criticism for infringing on civil liberties and privacy rights

Section 125 Cafeteria Plans

established by the Revenue Act of 1978, allow employees to choose from a variety of pre-tax benefit options, such as health insurance and flexible spending accounts, thereby reducing their taxable income and increasing take-home pay