Common Workplace Legal Issues Employees Face

Amelia Harper

August 15, 2025

Common Workplace Legal Issues Employees Face

Workplace legal pitfalls, such as wage disputes, discrimination, and harassment, require employees to understand labor laws. As remote roles and hybrid schedules become more prevalent, these issues can impact career trajectory, financial stability, and overall well-being. Recognizing these pitfalls allows employees to take proactive steps for a fair, respectful, and legally compliant work environment.

Proactive education on workplace laws is crucial for employees to navigate legal issues such as wage theft, discrimination, privacy violations, and unsafe conditions, ensuring fair treatment and professional well-being. For those seeking region-specific support, employment lawyers Denver are a valuable resource for guidance, especially for complex cases that demand legal expertise or local insight. Employees should feel empowered to report concerns or violations without fear of negative consequences. Legal safeguards protect whistleblowers and those asserting rights. Trusted legal counsel and federal agencies offer crucial help, safeguarding interests and improving coworker conditions.

Wage Theft

Wage theft is a significant issue affecting millions of American workers annually, where employees are denied full compensation for their work. Employers may withhold overtime pay, misclassify work hours, fail to provide breaks, or pay less than minimum wage. Over $15 billion in wages are stolen annually, disproportionately affecting low-income and vulnerable employees. To prevent wage theft, it is essential to track time and compensation, understand state labor laws, and report discrepancies to the Department of Labor or local labor board. Legal experts can assist if internal reporting fails or if employees face retaliation.

Misclassification of Employees

Employee misclassification is when an employer labels a worker as an independent contractor, denying them critical benefits like overtime, health insurance, unemployment insurance, and workers’ compensation. This practice can skew unemployment statistics and tax payments. The Department of Labor’s six-factor “economic reality” test helps clarify classification criteria. Misclassified workers may be ineligible for benefits like paid leave, family medical leave, and employer-provided retirement plans. If you suspect misclassification, seek clarification from HR and review your employment contract. Misclassified workers should consult with legal experts to understand their rights, as rectifying misclassification can result in substantial backpay and reinstated benefits.

Sexual Harassment

Sexual harassment is a form of discrimination that involves unwanted advances, inappropriate comments, lewd jokes, or requests for favors in exchange for job benefits. It can occur in person or digitally and can be committed by coworkers, supervisors, or customers. Under Title VII of the Civil Rights Act, creating a hostile environment or making adverse employment decisions is illegal. Victims should keep written records, report incidents to HR, and use official workplace reporting channels. If necessary, filing a complaint with the Equal Employment Opportunity Commission (EEOC) can provide federal safeguards and initiate legal proceedings. Support from advocacy organizations, therapists, or legal advocates can also help navigate this emotionally challenging experience.

Workplace Discrimination

Federal law prohibits workplace discrimination based on protected characteristics like age, race, religion, disability, gender, and sexual orientation. However, over 8% of employees reported workplace abuse or discrimination in a 2024 survey. Discrimination can occur at any stage, including hiring, promotion, pay, job assignments, or disciplinary actions. Employees should document incidents, file complaints with HR, union representatives, or the EEOC, and seek legal counsel to address systemic issues.

Retaliation

Retaliation happens when employers punish employees for engaging in legally protected activities, such as reporting unsafe conditions, discrimination, harassment, or wage theft. Retaliatory actions include demotion, firing, verbal abuse, unwarranted write-ups, reduced hours, harassment, or unfavorable job assignments meant to force an employee out. The EEOC reports retaliation is the top complaint received annually, underscoring how common it is for workers to face consequences for standing up for their rights. Anyone facing retaliation must document all related actions, correspondence, and performance reviews, and seek external support if the employer fails to resolve the issue internally. Federal and state laws provide remedies, including reinstatement, back pay, and sometimes punitive damages for employees who succeed in retaliation claims.

Unsafe Working Conditions

The Occupational Safety and Health Administration (OSHA) requires employers to safeguard employees from unreasonable physical, chemical, ergonomic, or psychological hazards. Unsafe conditions may involve faulty equipment, hazardous substances, inadequate training, or the absence of required safety protocols. Some high-risk jobs, like construction and manufacturing, are especially prone to accidents if regulations are not followed. Employees can refuse unsafe work and report violations to OSHA without fearing reprisal. Participation in safety committees, knowledge of posted safety notices, and use of protective equipment show your commitment to workplace safety. Workers can file a complaint anonymously with OSHA, which will then investigate and ensure necessary corrections. In urgent situations, immediate action and escalation to local authorities may also be needed to protect health and life.

Privacy Violations

In the age of remote work and increased digital connectivity, employers’ digital monitoring has become common, sometimes crossing the line into privacy infringements. Monitoring methods can include tracking software, video surveillance, GPS location tracking, or accessing personal devices used for work. In some states, employers must disclose monitoring practices, but “bring your own device” policies and remote work blurring boundaries have increased privacy-related disputes. If you are uncomfortable with your employer’s monitoring practices, discussing your concerns and reviewing remote work and privacy policies is essential. Consult your state’s labor board or legal counsel if data collection feels intrusive or excessive. Documentation of employer policies and any communication regarding monitoring can be helpful if a dispute arises.

Non-Compete Agreements

Non-compete clauses are designed to limit your ability to work for competitors after leaving a job, but they can also restrict career mobility and suppress wages. The intent is to protect trade secrets or proprietary information, but overly broad or lengthy non-competes can make it difficult for individuals to find new jobs in their field. States vary widely in whether these agreements are enforceable, and some ban them outright, while others enforce only fair and reasonable clauses. The Federal Trade Commission’s 2023 proposed rule to prohibit most non-compete clauses reflects growing recognition of their negative impacts and the need for uniformity. Before signing, closely review any non-compete agreement, ask specific questions about what is restricted and for how long, and seek legal advice if you have concerns about restrictive terms. Challenging unenforceable or overly harsh clauses early is easier than fighting them after leaving a job.

Final Thoughts

Workplace legal issues like wage disputes, discrimination, and harassment are crucial for maintaining fair treatment and professional well-being. As remote roles and hybrid schedules become more prevalent, these issues can impact career trajectory, financial stability, and overall well-being. Wage theft, misclassification of employees, sexual harassment, and workplace discrimination are prevalent issues. Legal experts can assist in resolving these issues. Victims should keep records, report incidents to HR, and utilize official reporting channels. Over 8% of employees reported workplace abuse or discrimination in 2024. Employees can refuse unsafe work and report violations without fear of reprisal.