BLAW W4

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liuzzo_ch32.ppt

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

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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

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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.”

32-*

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.

32-*

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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