The landscape of federal and state employment laws is undeniably complex and ever-evolving, especially regarding corporate governance. From legal challenges that arise from compliance with labor regulations and employee rights, to challenges surrounding multi-jurisdictional laws, business leaders and human resources (HR) professionals are under a great deal of pressure to establish and maintain ethical, compliant workplaces.
For those striving to further their understanding of employment laws in corporate governance while learning how to better handle employment disputes and minimize legal risks, enrolling in a Master of Legal Studies (M.L.S.) degree program could be an ideal route. Specifically, an online M.L.S. degree with a general legal studies track from the University of Miami School of Law can help build your foundation of legal understanding as you enhance your critical thinking, problem-solving, and other essential skills.
Understanding the Importance of Employment Law in Corporate Governance
Employment law and corporate governance are closely interconnected. Whereas corporate governance is more focused on the creation of practices and rules that direct a company and its relations with stakeholders, customers, and employees, employment law inevitably comes into play in the creation of ethical and compliant workplaces.
Not only do employment laws play a central role in overall business operations, but businesses can also face severe consequences if they fall out of compliance.
The Role of Employment Laws in Business Operations
Both state and federal employment laws affect nearly every aspect of a company's operations. These employment laws exist not just to protect workers' rights but also to create fair workplaces and help businesses avoid legal issues (such as discrimination lawsuits). Employment laws can affect how much businesses must pay their employees, how often they can require them to work, and how employees should be treated.
Some examples of notable employment laws include:
- Family and Medical Leave Act (FMLA) – This law allows eligible employees to take unpaid leave for personal medical reasons without having to worry about losing their jobs or benefits.
- Fair Labor Standards Act (FLSA) – This sets strict minimum wage requirements at the federal level (although individual states may enact their own minimum wage laws) while regulating work conditions and overtime pay requirements.
- Occupational Safety and Health Act (OSHA) – This law enacts requirements for workplace safety and provides workers with protection against retaliation for whistleblowing.
- Age Discrimination in Employment Act of 1967 – This protects employees and job applicants over the age of 40 from discrimination based on age.
The Consequences of Non-Compliance
When businesses fail to comply with federal and state employment laws, the consequences can be serious. For one, businesses can face hefty financial fines and penalties if they are found to be operating outside of compliance with employment laws. The costs of these fines can vary depending on the severity of the violation, the number of instances that have been documented, and other factors.
When workplaces fail to comply with employment laws, this can increase tension among employees in the workplace as well. Workers may feel they are not being valued or treated fairly, which can have a negative impact on job performance and may lead to higher rates of turnover. In a worst-case scenario, employees (or former employees) may even take legal action against employers for violating employment laws.
Of course, there is the simple fact that non-compliance is a bad look for business. Companies with a reputation for compliance issues may have a challenging time regaining the trust of their customer base, which can be difficult to recover from.
The Value of an M.L.S. in Corporate Governance
For those working in law-adjacent business roles — such as human resources professionals and business leaders — a Master of Legal Studies degree can provide valuable resources and help professionals enhance their expertise in corporate governance law, federal and state employment laws, and more.
Below are a few ways in which an M.L.S. degree program can help business leaders and HR professionals with corporate governance issues.
Equipping Professionals with Legal Expertise
An M.L.S. degree delves into both federal and state employment laws and corporate governance law. This includes dedicated coursework on the foundations of law and regulation in the United States, foundations of risk compliance, essentials of employment law, and legal issues in the employer-employee relationship.
With a deeper understanding of employment law and corporate governance law, professionals in law-adjacent business and HR roles can be better equipped to maintain compliance while fostering ethical and safe workplaces for all. This level of legal understanding is not something that can typically be achieved with a background and/or education in human resources alone. Instead, completing a law-adjacent degree program (like a Master of Legal Studies) provides HR professionals with the legal expertise and knowledge they need to take their own work to the next level.
Developing Compliance Strategies
It is one thing to know and understand the laws; however, it is another thing entirely to keep a business of any size in compliance with employment and corporate governance laws. Thankfully, the comprehensive curriculum of an M.L.S. degree program can provide HR and business professionals with the necessary skills and tools to develop effective compliance strategies within their respective companies.
For example, in the University of Miami School of Law's M.L.S. program, students have the opportunity to take courses on relevant topics such as:
- Ethical Foundations of Risk and Compliance
- Employee Benefits and Compensation Compliance
- Advanced Communication Skills for Compliance Professionals
The knowledge and skills gained from these courses may help business leaders and HR professionals more effectively craft compliance strategies that will help businesses avoid penalties and fines while maintaining better relationships with employees and building a positive public image.
Enhancing Problem-Solving Skills
As part of an M.L.S. degree program, business leaders and HR professionals will also have the opportunity to develop their problem-solving and critical thinking skills — both of which are key to addressing legal challenges in employment law and corporate governance. Additionally, professionals in an M.L.S. program will take coursework on advanced communication as a means of strengthening their verbal and written communication skills, which can be useful when it comes to sharing critical compliance information with C-suite executives, regulators, lawyers, and others.
Navigating Multi-Jurisdictional Laws
Another challenge that HR professionals and business leaders face in keeping workplaces compliant is the inherently complex nature of navigating multi-jurisdictional employment laws and corporate governance laws. With a better understanding of these laws, professionals can apply their knowledge and skills to build ethical and more compliant workplaces.
The Importance of Understanding Multi-Jurisdictional Laws
HR professionals and business leaders are tasked with navigating laws that can vary greatly across states and federal regulations. One of the most common examples of this is minimum wage law. At the federal level, the minimum wage is $7.25 per hour as of 2024. However, many states have passed their own minimum wage laws. In Washington, D.C., for instance, the minimum wage is $17 per hour. Meanwhile, states like South Carolina and Tennessee do not have any minimum wage laws and thus defer to the federal minimum wage.
Another area of employment law that can become complicated across different jurisdictions is job application law. In some states (such as Maine and Colorado), laws have been passed that prevent employers from asking job applicants about their criminal history on an application. While this is still a legal practice at the federal level, employers operating in states where it has been banned may need to make changes to their application processes to remain in compliance.
Staying privy to both federal and state regulations is crucial to avoiding compliance issues, so HR professionals and other business leaders need to understand varying laws and how to handle them within their own businesses.
Building Ethical, Compliant Workplaces
Anyone who works in HR understands that their primary function is to cultivate and maintain ethical, compliant workplaces. Without an extensive understanding of employment law and corporate governance law, though, this is easier said than done.
When HR professionals and business leaders have a strong understanding of both federal and state employment laws as well as corporate governance law, they can put their expertise to work in fostering a culture of compliance and ethics within organizations. This, in turn, can create more harmonious workplaces where employees feel valued and are truly satisfied in their jobs.
Handling Employment Disputes
Even with the right compliance strategies in place, employment disputes can arise from time to time. This remains true not just within larger companies but also within smaller businesses. Unfortunately, these disputes have the potential to escalate into more serious legal issues if they are not addressed and rectified sooner rather than later.
HR professionals and other business leaders, then, have a critical responsibility to handle employment disputes promptly. In doing so, they can effectively minimize legal risks while resolving issues before they amount to something bigger.
Minimizing Legal Risks
HR professionals can employ various strategies as a means of handling employment disputes, all of which can be explored and built upon as part of an M.L.S. degree program. For example, these professionals should leverage their communication skills to ensure that all involved parties can have their voices heard and their grievances understood. After all, many disputes can arise out of miscommunication, so keeping communication channels open can be a great way for businesses to address conflicts and handle them appropriately.
In addition, HR professionals may need to apply their conflict resolution and even mediation skills when it comes to addressing employment disputes. With effective conflict resolution and mediation strategies in place, it may be possible to reach a solution that all parties can agree upon — thus minimizing legal risks and the potential for ongoing issues.
As part of a company's compliance strategy, HR professionals should also have thorough grievance procedures in place so that workers know exactly what they need to do to report a grievance. From there, workplaces should have specific policies and procedures in place for dealing with these issues objectively in order to resolve conflicts peacefully and without the need for legal intervention.
All of these strategies and skills, of course, hold little power without a solid legal framework in place. Having a comprehensive understanding of employment laws and corporate governance laws can help HR teams and business leaders apply their mediation, conflict management, and communication skills to resolve disputes.
The Role of HR Professionals
At the end of the day, human resources professionals with M.L.S. degrees are better equipped to manage employee relations and resolve issues than those without an M.L.S. education. Those with an M.L.S. education will have taken specific courses on important employment law and compliance topics such as:
- Negotiation and mediation
- Dispute resolution
- Employee benefits and compensation law
- Risk and compliance
- U.S. law and regulation
- Corporate compliance and enterprise risk management
With this extensive knowledge, HR professionals who graduate with an M.L.S. degree are better prepared to navigate common disputes and issues as they relate to employment laws and corporate governance law at the state and federal levels. They may also have the foundational knowledge and skills needed to develop and implement compliance strategies that can keep businesses out of legal trouble. Not to mention, improved compliance can lead to happier employees and a more peaceful and productive workplace overall.
The Impact of Employment Laws on Corporate Governance and Employees
Although employment law and corporate governance law may technically be two different areas of law, they are still closely related. In fact, there are numerous ways in which employment laws (at both the state and federal levels) can directly influence corporate governance and employees within a company.
Employee Rights and Protections
Consider, for example, how specific employment laws can protect employees and ensure that their rights are being upheld within corporate governance. Minimum wage laws ensure that employees receive fair pay for their work. Meanwhile, family and medical leave laws protect workers' jobs when they need to take time off due to personal medical issues (or medical reasons within the immediate family).
With these foundational laws in place, employers must ensure that their own corporate governance laws and policies remain ethical and in compliance.
The Interplay of Corporate Governance and Employment Laws
The connection between employment laws and corporate governance is significant; effective corporate governance cannot be achieved without incorporating compliance strategies that follow federal and state employment laws. Ultimately, it is up to HR professionals and business leaders to ensure that their corporate policies and structures are set up in such a way that the company remains in compliance with all applicable employment laws at all times. Failure to do so could result in legal disputes with employees (including lawsuits), fines and penalties for non-compliance, and a tarnished public reputation.
Learn More in an M.L.S. Degree Program
Staying up to date on federal and state employment laws while maintaining corporate governance law requires commitment from any business leader or HR professional. Fortunately, with the right understanding of corporate governance law, labor regulations, and compliance strategies, it is possible to maintain harmonious and compliant workplaces for all.
If you are ready to take your education to the next level, explore the online Master of Legal Studies program through the University of Miami School of Law. With six tracks available, our general legal studies track is well-suited for business and HR professionals who wish to elevate their expertise and understanding in law-adjacent roles. In addition, we offer an M.L.S. with tracks in human resources, healthcare, real estate, finance, and technology. Plus, because this program is offered exclusively online, busy professionals can work toward their degrees without pausing their professional lives.
Contact us today to learn more about our online Master of Legal Studies curriculum, or begin your online application for admission. With three convenient start dates throughout the year, you could begin your program sooner than you may think.
Sources
https://admissions.law.miami.edu/academics/mls/
https://admissions.law.miami.edu/academics/mls/curriculum/#general
https://www.usa.gov/workplace-laws
https://www.dol.gov/agencies/whd/minimum-wage
https://www.nelp.org/insights-research/ban-the-box-fair-chance-hiring-state-and-local-guide/
