5 Important Historical changes to Labor Laws

5 Important Historical Changes to U.S. Labor Laws

Employment laws have changed significantly over time as lawmakers, federal agencies, and courts have addressed wages, workplace safety, hiring practices, and employee protections. Understanding these historical developments helps employers recognize why workplace compliance requirements continue to evolve.

Below are five important developments in U.S. labor law history and their significance for employers. This article provides historical context rather than a statement of current wage rates, penalties, or legal requirements.

1. Minimum Wage Protections for Federal Contractors

In 2014, President Barack Obama signed Executive Order 13658, establishing a minimum wage requirement for workers performing certain covered federal contracts. The initial minimum wage was $10.10 per hour, with annual adjustments beginning in 2016.

The executive order represented an important development in federal contractor wage protections. Subsequent administrations introduced additional changes to federal contractor minimum wage requirements, demonstrating how executive actions can affect employment obligations.

Employers performing federal contracts should review the requirements applicable to their particular contracts rather than relying on historical wage amounts.

2. Changes to Federal Overtime Regulations

The Fair Labor Standards Act (FLSA) establishes federal minimum wage, overtime, recordkeeping, and certain child labor requirements.

In 2016, the U.S. Department of Labor issued a rule intended to increase the salary threshold used for certain executive, administrative, and professional overtime exemptions. The rule would have raised the standard salary threshold to $913 per week, or $47,476 annually.

However, the rule was blocked by a federal court before taking effect and was subsequently invalidated. Later administrations issued additional overtime regulations, some of which also faced legal challenges.

This history illustrates why employers must consider both salary levels and applicable job-duty requirements when evaluating overtime exemptions.

For related workplace posting products, visit our Federal Labor Law Posters category.

3. Federal Fair-Chance Hiring Protections

Fair-chance hiring initiatives, commonly known as "Ban the Box" policies, developed across numerous states and local jurisdictions to limit when employers may inquire about an applicant's criminal history.

The federal Fair Chance to Compete for Jobs Act was enacted in December 2019 as part of the National Defense Authorization Act for Fiscal Year 2020. Its principal hiring restrictions took effect in December 2021.

The law generally restricts federal agencies and certain federal contractors from requesting criminal history information before making a conditional employment offer, subject to statutory exceptions.

State and local fair-chance hiring requirements may differ from federal requirements, so employers should review the laws applicable to their locations and hiring practices.

4. Increases in OSHA Civil Penalties

The Occupational Safety and Health Administration (OSHA) enforces federal workplace safety and health standards for covered employers.

In 2016, federal OSHA civil penalties increased substantially following legislation requiring inflation adjustments. The initial adjustment was significant because maximum penalties had remained largely unchanged for many years.

OSHA penalties are subject to subsequent adjustments, and the applicable amounts depend on the violation classification and the governing requirements.

Employers can support workplace safety awareness by maintaining appropriate safety procedures, employee training, and required workplace notices.

Explore additional Labor Law Compliance Center resources for workplace compliance products and safety information.

5. The Pregnant Workers Fairness Act

The Pregnant Workers Fairness Act (PWFA) represents a significant development in federal workplace protections for employees affected by pregnancy, childbirth, and related medical conditions.

Congress enacted the PWFA in December 2022, and the law took effect on June 27, 2023.

The PWFA generally requires covered employers to provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions unless doing so would impose an undue hardship.

The law builds upon existing federal protections, including Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, and other applicable employment laws.

Employers should review current Equal Employment Opportunity Commission guidance and applicable state laws when developing accommodation policies.

Why Labor Law Changes Matter to Employers

These historical developments demonstrate that employment compliance is not static. Federal regulations, state legislation, local ordinances, court decisions, and administrative actions can all affect workplace obligations.

Employers should regularly review applicable requirements involving wages, employee rights, workplace safety, hiring practices, and mandatory notices.

Labor Law Compliance Center provides State and Federal Combination Labor Law Posters for employers across the United States.

Businesses seeking assistance with maintaining updated workplace posters can also explore our Poster Replacement Plan.

Compliance note: This article discusses historical legal developments. Employers should consult current official agency guidance and applicable laws when determining their present obligations.

Originally published September 5, 2019. Updated October 2026.