Employment Law Practice Exam 2025 – Comprehensive Prep Resource

The Health Insurance Portability and Accountability Act (HIPAA) is the law that requires employers to safeguard employee records, particularly those related to health information. Under HIPAA, employers and their associated health plans must ensure the privacy and security of protected health information (PHI). This includes maintaining confidentiality concerning medical records and other healthcare-related data.

The law establishes stringent guidelines for how this information can be shared and mandates that only authorized individuals should have access to an employee’s health information. Violating these regulations can lead to significant penalties for employers, emphasizing the necessity of keeping sensitive employee information confidential.

In contrast, the other laws listed focus on different aspects of employment. The Family and Medical Leave Act is primarily concerned with job protection during leave for medical reasons. The Fair Labor Standards Act governs minimum wage and overtime pay requirements, while the Equal Pay Act addresses pay discrimination based on gender. None of these laws place the same focus on the confidentiality of employee records. Thus, HIPAA stands out as the correct option regarding confidentiality requirements for employee records.