BLAW W4
Chapter 32
Employment Law
Copyright © 2016 McGraw-Hill Education. All rights reserved.
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Worker Safety and Health
- There are numerous federal and state laws that serve to protect employees from accidents and sicknesses that are job-related.
- State Level
- Workers’ compensation statutes, which pertain to how a worker may recover damages for work-related injuries and illnesses.
- Federal Level
- There are several statutes that require employers to maintain a safe and healthful work environment.
- The most important of these federal statutes is the Occupational Safety and Health Act of 1970.
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Learning Outcome 32-1: Discuss the federal and state laws that protect employees, including workers’ compensation and the Occupational Safety and Health Act.
Page: 538
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Workers’ Compensation
- Workers’ compensation: A type of insurance that provides that employees may recover damages for work-related injuries and illnesses without having to prove negligence on part of employer.
- Since workers’ compensation is almost mandatory and provides employees with nearly automatic recovery, it is considered to be the exclusive remedy.
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Learning Outcome 32-1: Discuss the federal and state laws that protect employees, including workers’ compensation and the Occupational Safety and Health Act.
Page: 538
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Workers’ Compensation (cont.)
- Exclusive remedy: An employee who sustains a work-related injury or illness can recover damages only through workers’ compensation and may not file a lawsuit against his or her employer.
- However, employees may sue their employers if it was the employer’s intentional or grossly negligent conduct that caused the injury or illness.
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Learning Outcome 32-1: Discuss the federal and state laws that protect employees, including workers’ compensation and the Occupational Safety and Health Act.
Page: 538
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Example: Workers’ Compensation
Facts:
Kwan was injured when he tripped on slippery floor while working for Nambeesan Mini- Markets.
Kwan sued Nambeesan, arguing that she should be allowed to recover for her injuries due to Nambeesan’s negligence in not maintaining a dry floor.
Kwan’s case will be dismissed because workers’ compensation is exclusive remedy.
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Learning Outcome 32-1: Discuss the federal and state laws that protect employees, including workers’ compensation and the Occupational Safety and Health Act.
Page: 538
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Occupational Safety
and Health Act
- Occupational Safety and Health Act of 1970: This law was passed to promote safety and health in the workplace.
- The law created a federal agency, the Occupational Safety and Health Administration (OSHA), to administer its many provisions.
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Learning Outcome 32-1: Discuss the federal and state laws that protect employees, including workers’ compensation and the Occupational Safety and Health Act.
Page: 539
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
OSHA
- OSHA:
- Requires that companies maintain records of employee work-related accidents and sicknesses and post data regarding these every February.
- Inspects workplaces to be certain that these worksites comply with safety and health standards and imposes penalties if it finds any violations.
- Can impose penalties ranging from fines to facility closings.
- In extreme cases, such as those in which deliberate and repeat violations result in a fatality, penalties may reach $500,000 plus prison time.
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Learning Outcome 32-1: Discuss the federal and state laws that protect employees, including workers’ compensation and the Occupational Safety and Health Act.
Page: 539
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Discrimination in Employment
- There are many federal, state, and local statutes prohibiting employment discrimination.
- Discrimination against employees who are members of protected class illegal.
- Includes outreach, hiring, job classification, salary, promotions, benefits, discipline, layoffs, termination, and so on.
- Affirmative action plans: Records maintained by companies under federal and state law, containing detailed reports to demonstrate employment practices nondiscriminatory.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 540
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Civil Rights Act of 1964
- Civil Rights Act of 1964: Federal statute designed to protect individuals from illegal discrimination.
- Law divided into parts, referred to as titles, prohibiting discrimination in various situations.
- The Equal Employment Opportunity Commission (EEOC): Federal agency responsible for administering laws prohibiting discrimination in employment.
- Since 1972, EEOC has standing to sue companies alleged to be in violation of law.
- Discrimination in employment prohibited based on race, creed, color, sex, and national origin.
- Over the years classes expanded to include others.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 540
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Equal Pay Act of 1963
- The Equal Pay Act of 1963:
- Prohibits employer from engaging in wage discrimination based upon sex.
- Requires employees performing substantially similar jobs to be compensated equally.
- Note - There are some situations where wage disparity between sexes is permissible.
- Example: When wages based on seniority.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 541
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Age Discrimination
in Employment Act
- The Age Discrimination in Employment Act of 1967 is a federal statute designed to protect individuals from illegal discrimination in employment on the basis of age.
- The protected class created pursuant to this statute is persons over the age of 40.
- Several states have laws making it illegal to discriminate on the basis of age against persons who are over the age of 21.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 541
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Example: The Age Discrimination in Employment Act
- Facts:
- Bookshire was 67-year-old manager for company.
- Over 42 years he rose to become manager.
- Senior management officials advised him he would need to improve technology skills to keep job.
- Bookshire took training program and computer classes.
- Nonetheless, he was terminated and replaced by 21-year-old with no experience at lower salary.
- Bookshire filed complaint with EEOC, which will likely impose penalties on company for age discrimination.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 541
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
The Pregnancy Discrimination Act
- The Pregnancy Discrimination Act of 1978: A federal statute designed to protect individuals from illegal discrimination in employment on the basis of pregnancy.
- Under the Act, employers must treat women affected by pregnancy in the same manner as any other employee who suffers from a temporary disability.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 541
*
Copyright © 2016 McGraw-Hill Education. All rights reserved.
Example: The Pregnancy Discrimination Act
- Facts:
- Yashiv worked on assembly line for manufacturer.
- Position required that she stand for long hours.
- Yashiv became pregnant, requested transfer to vacant clerk position for which she qualified, and was refused.
- Yashiv was fired when she was no longer able to perform assembly-line duties due to pregnancy.
- Yashiv filed complaint with EEOC arguing company should have honored request for temporary transfer.
- EEOC will likely impose penalties on company for pregnancy discrimination.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 542
*
Copyright © 2016 McGraw-Hill Education. All rights reserved.
Americans with Disabilities Act
- Americans with Disabilities Act (ADA) of 1990: A federal statute designed to protect individuals from illegal discrimination in employment on the basis of disability.
- The ADA defines disability as, “A physical or mental impairment that substantially limits one or more of the major activities of life.”
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 542
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Americans with Disabilities Act (cont.)
- Americans with Disabilities Act (ADA) of 1990 (cont): Persons who are considered disabled and protected under ADA include anyone who:
- Is sight- or hearing-impaired or uses a wheelchair.
- Suffers from cancer, diabetes, alcoholism, AIDS, epilepsy, manic depression, or schizophrenia.
- The ADA requires that employers make reasonable accommodation for an otherwise qualified employee with a disability, unless to do so would cause undue hardship.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 542
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Civil Rights Act of 1991
- Civil Rights Act of 1991: A federal statute that provides two important additional remedies to an employee who can prove that he or she was a victim of discrimination:
- An employee may collect punitive damages (in effect, to punish the employer).
- An employee may recover for emotional distress associated with being the victim of discrimination.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 543
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Sexual Harassment
- Sexual harassment: Unwelcome sexual attention, whether verbal or physical, that affects an employee’s job condition or creates a hostile working environment.
- It is a form of discrimination on the basis of sex and is illegal under federal and state law.
- Same-sex harassment is also illegal.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 543
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Sexual Harassment (cont.)
- Sexual harassment examples:
- Unwelcome sexual advances.
- Coercion.
- Favoritism.
- Indirect harassment.
- Physical conduct, such as unseemly gestures or touching.
- Visual harassment.
- Verbal harassment.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 543
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Sexual Harassment (cont.)
- If a case of sexual harassment winds up in court, the employer will attempt to defend against this lawsuit by demonstrating that there was an effective sexual harassment program in force.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 543
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Sexual Harassment (cont.)
- An effective sexual harassment program is one that:
- Is in writing and communicated to the employees.
- Defines sexual harassment and declares a “no tolerance” policy.
- Establishes a complaint procedure.
- Trains, educates, and sensitizes employees.
- Provides for prompt and thorough investigation of complaints.
- Includes corrective action, including discipline.
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Learning Outcome 32-2: Identify the major federal statutes concerning discrimination in employment, and identify several forms of conduct that can constitute sexual harassment.
Page: 543
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Labor Unions
- Since the 1930s, labor unions have played a vital role in both the U.S. economy and its politics.
- It is important to understand the rights under the law that pertain to employees, unions, and employers.
- These rights are protected by the National Labor Relations Board (NLRB), a federal agency responsible for administering laws relating to labor unions.
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Learning Outcome 32-3: Discuss labor unions and the rights of employees, unions, and employers under federal law.
Page: 544
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Rights of Employees
- Employees have the right to form, join, and assist a labor union (or not to do so) and the right to bargain collectively through representatives of their own choosing.
- They also have the right not to be discriminated against because of their union activities.
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Learning Outcome 32-3: Discuss labor unions and the rights of employees, unions, and employers under federal law.
Page: 544
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Rights of Employees (cont.)
- Employees have the right to vote for union leadership in democratically held elections.
- If the employee has a dispute with his or her union, he or she may retain an attorney and file a lawsuit.
- Employment contracts that limit these rights are unenforceable.
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Learning Outcome 32-3: Discuss labor unions and the rights of employees, unions, and employers under federal law.
Page: 544
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Rights of the Union
- The union has the right to represent all employees of a company who are a part of the bargaining unit.
- The union then has the right to negotiate a contract with the employer, called a collective bargaining agreement, that covers all terms and conditions of employment.
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Learning Outcome 32-3: Discuss labor unions and the rights of employees, unions, and employers under federal law.
Page: 544
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Rights of the Union
- During the negotiation process, the union has the right to ensure that the employer bargains in good faith, making an honest effort to reach an agreement.
- If an agreement is not reached, the union has the right to call a strike.
- At times, employees engage in a wildcat strike (a strike without the union’s consent) or a slowdown (reporting to work but intentionally decreasing their productivity).
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Learning Outcome 32-3: Discuss labor unions and the rights of employees, unions, and employers under federal law.
Page: 544
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Rights of the Employer
- Employer has right to be free from featherbedding (hiring unproductive workers) and secondary boycotts (being targeted by a union when union’s dispute is really with another employer).
- During negotiation process, employer has right to ensure union bargains in good faith.
- If an agreement is not reached, the employer has the right to engage in a lockout.
- Lockout: Employees are not allowed to return to work.
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Learning Outcome 32-3: Discuss labor unions and the rights of employees, unions, and employers under federal law.
Page: 544
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Family and Medical Leave Act
- The Family and Medical Leave Act (FMLA) is federal statute providing eligible employees with right to take up to 12 weeks of unpaid leave for:
- Personal medical reasons, or
- to care for a child, spouse, or parent.
- Applies to all employers who employee 50 or more employees
- To be eligible, employee must have worked for his or her current employer for at least 1,250 hours in the previous year.
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Learning Outcome 32-4: Discuss an employee’s rights to medical leave and unemployment benefits.
Page: 545
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Unemployment Benefits
- Unemployment insurance provides financial stability, in the form of unemployment compensation, to eligible employees who lose their jobs.
- A dual program of state and federal statutes create a system whereby employers are required to pay federal and state unemployment insurance taxes.
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Learning Outcome 32-4: Discuss an employee’s rights to medical leave and unemployment benefits.
Page: 545
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Copyright © 2016 McGraw-Hill Education. All rights reserved.
Unemployment Benefits (cont.)
- Generally, in order for employees to be eligible to receive unemployment compensation, they must have:
- Lost their job through no fault of their own, and
- They must meet the minimum state requirements for wages or time worked during an established period of time.
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Learning Outcome 32-4: Discuss an employee’s rights to medical leave and unemployment benefits.
Page: 545
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