timeline for making profit: Investors will need an indication of when they expect some return on their investment so you need to provide some reasonable timelines of when that will be

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Chapter 31

Employment, Worker Protection, and Immigration Law

Workers’ Compensation Acts

  • Workers’ compensation: Compensation paid to workers and their families when workers are injured in connection with their jobs
  • These acts help workers receive compensation for injuries that occur on the job
  • Workers file a claim with the agency
  • Agency determines legitimacy of claim
  • Compensation benefits are paid accordingly

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Workers’ Compensation Insurance

  • States require employers to:
  • Purchase workers’ compensation insurance, or
  • Self-insure by making payments, if they have the ability to pay compensation claims

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Employment-Related Injury

  • Injury to an employee that arises out of and in the course of employment
  • Workers’ compensation insurance covers:
  • Physical injuries
  • Stress
  • Mental illness, that are employment related

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Exclusive Remedy

  • Workers’ compensation is an exclusive remedy
  • Workers cannot sue their employers in court for damages, except when employer intentionally injures an employee
  • Workers can sue third parties to recover damages

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Case 31.1:Workers’ Compensation

  • Case
  • Kelley v. Coca-Cola Enterprises, Inc.
  • Web 2010 Ohio App. Lexis 1269 (2010)
  • Court of Appeals of Ohio
  • Issue
  • Is Kelley entitled to workers’ compensation benefits?

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Occupational Safety and Health Act

  • Promotes safety in the workplace
  • Established the Occupational Safety and Health Administration (OSHA)
  • Imposes record-keeping and reporting requirements on employers
  • Requires employers to post notices in the workplace, informing employees of their rights

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Occupational Safety and Health Administration (OSHA)

  • Empowered to enforce the Occupational Safety and Health Act
  • Empowered to adopt rules and regulations to interpret and enforce the act
  • Adopted thousands of regulations to enforce the safety standards established by the act

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Types of OSHA Standards

  • Specific duty standards: Developed and apply to specific equipment, procedures, type of work, individual industry, unique work conditions, and the like
  • General duty standards: Imposes on an employer a duty to provide a work environment that is free from recognized hazards

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Fair Labor Standards Act (FLSA)

  • Prohibits child labor
  • Establishes minimum wage requirements
  • Establishes overtime pay requirements

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Child Labor

  • The Fair Labor Standards Act forbids
  • the use of oppressive child labor
  • shipping of goods produced by businesses that use oppressive child labor

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Department of Labor Regulations

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Age(in years) Occupation
Less than 14 Newspaper deliverers
14–15 Non-hazardous jobs; limited hours
16–17 Non-hazardous jobs; unlimited hours
18 and above Any job

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Minimum Wage and Overtime Pay

  • Employees should be paid the federal minimum wage for all hours worked
  • Students and apprentices can be paid less than the minimum wage
  • Employees should be paid overtime pay of one-and-a-half times their regular pay for each hour worked in excess of 40 hours that week

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Case 31.2: U.S. Supreme Court Fair Labor Standards Act

  • Case
  • IBP, Inc. v. Alvarez
  • 546 U.S. 21, 126 S.Ct. 514, 163 L.Ed.2d 288, Web 2005 U.S. Lexis 8373 (2005)
  • Supreme Court of the United States
  • Issue
  • Is the time spent by employees walking between the locker room and production area compensable under the Fair Labor Standards Act?

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Exemptions from Minimum Wage and Overtime Pay Requirements

  • Executives
  • Administrative employees
  • Learned professionals
  • Highly compensated employees
  • Computer employees
  • Outside sales representatives

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Family and Medical Leave Act

  • Guarantees workers unpaid time off from work for family and medical emergencies
  • Applies to companies with 50 or more workers, federal, state, and local government workers
  • Employee must have worked for employer for at least one year

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Family and Medical Leave Act

  • Provides up twelve weeks of unpaid leave for:
  • Birth of child
  • Placement of child for adoption or foster care
  • Serious health condition
  • Care for spouse, child, or parent with serious health condition
  • Employee must be restored to same or equivalent position upon return

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Consolidated Omnibus Budget Reconciliation Act (COBRA)

  • Terminated employee must be offered the opportunity to continue group health insurance
  • Employer must notify covered employees of their rights under COBRA
  • Group rate premium should be paid to continue coverage

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Employee Retirement Income Security Act (ERISA)

  • Applies to employer-offered pension plans
  • Designed to prevent fraud and abuses in private pension plans
  • Employers are subjected to record-keeping and disclosure requirements
  • Provides for vesting
  • Vesting: occurs when an employee has a nonforfeitable right to receive pension benefits

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Government Programs

  • Unemployment compensation: paid to workers who are temporarily unemployed
  • Employers pay unemployment taxes
  • To collect benefits, applicants must be available for work
  • Workers fired due to bad conduct or workers who quit voluntarily, are not eligible

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Government Programs

  • Social security: provide limited retirement and death benefits to certain employees and their dependents
  • Retirement benefits
  • Survivors’ benefits
  • Disability benefits
  • Medicare benefits
  • Failure to submit taxes results in interest payments, penalties, and criminal liability

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Immigration Law

  • Administered by U.S. Citizenship and Immigration Services(USCIS)
  • H-1B visa: allows U.S. employers to employ in the United States foreign nationals who are skilled in specialty occupations
  • EB-1 visa: allows U.S. employers to employ in the United States foreign nationals who possess extraordinary ability for certain types of employment

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Immigration Law

  • The Immigration Reform and Control Act(IRCA) requires the employer to:
  • Obtain a completed Form I-9 for every employee
  • Examine evidence of employee’s identity
  • The IRCA imposes criminal and financial penalties on employers who knowingly hire undocumented workers

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