Chapter 24

Employment Protection And

Equal Opportunity

Laws Regulating Employment Conditions

OSHA (Occupational Safety and Health Agency)

Agency of federal government that sets safety and health standards for most U.S. companies.

Business with 11+ employees

Inspections Occur…

Randomly, but must be announced When death or disaster occurs High Risk Industries When there are complaints from

Employees Must be in writing (laws protect

employees) Workplace cannot fire whistle blowers

Violations Found Employers can be fined for each

violation found

If employer recklessly disregards standard, the fine can be $10,000 per day with a cap of $70,000.

Wages, Hours, and Benefits

FLSA Fair Labor Standards

Act

Minimum Hourly Wage

Time and ½ for all work past 40 hours

Employment of minors

Equal Pay Act (1963)

Amendment to FLSA

States employers engaged in Interstate Commerce must pay women the same rate as men holding the same job

Must be same not comparable

Employment Retirement Income

Security Act (ERISA) 1974 Pension Plan: established by the

employer or a union designed to provide income to employees after they retire

Contributions must go into a trust fund that is independent from employer control

Good faith, informing employees of their retirement benefits and submitting reports

Family and Medical Leave Act An employee of a company with 50+ is

entitled to 12 weeks of leave during any 12 month period

Covers birth, adoption, care for serious medical condition of family members

Must be employed for at least 1 year before eligible.

Employee Privacy Rights

Federal Privacy Act

Addresses the privacy of government employees

Gives them…1. The right to restrict inspection of their

employment record2. Be informed of their employment files3. Be informed of the content of those

files4. Fix any mistake found in those files

Drug-free Workplace Act (1988)

Applies to companies that have contracts with the federal government

Must implement a plan or lose contract

Guidelines for Testing (4th Amendment Rights)

Employees/applicants must be notified of procedures

Results must remain confidential Communication of results to employee Backup test when the first one turns positive

Employee may challenge results

Employee Polygraph Protection Act (1988) Prohibits employers from using lie

detector test either for the screening of employment or random testing of employees

Exceptions: Employer has good reason to suspect illegal

activities Handling controlled substances

(pharmaceutical industry)

Laws Providing Worker Benefits

Social Security Act (1935) Government program that provides continuing

but limited income to workers and their dependents

9/10 workers participate

Employers deduct an amount, match it, and send both to IRS (set % of wages)

Congress sets the percentage

Social Security records are kept secret

Unemployment Compensation Laws

System of government payments to people who are out of work and looking for a job

Each state operates its own system

Worker’s Compensation Laws

Occurs when there is a loss of income due to accidents or death on the job.

Employers are responsible for paying into this fund

Fellow Servant Rule: By 1959 – all states had laws.

If collected, an employee gives up the right to sue

If collected, the employer gives up the right to use the defenses of assumption of risk, contributory negligence, and fellow servant rule.

Personal Responsibility and Work Opportunity Act of 1996 Created Temporary Assistance to Needy

Families (TANF) Limit: 5 years

Recipients must hold a job, enter career programs, or face loss of payments

This fund also allowed for child care

Does not provide for immigrants

Laws Regulating Employment Discrimination

Civil Rights Act of 1964

Title VII prohibits discrimination in employment based on sex, race, color, national origin, or religion.

15 or more employees

Disparate Treatment The employer intentionally discriminates

against an individual or a group belonging to one of the categories.

Bona Fide Occupational Qualification (BFOQ)(modeling women’s clothing)

Disparate Impact An employer has a policy that on the

surface seems neutral, but which unequal and unfair impact on members of protected groups.

Civil Rights Act of 1991 Employer has the burden to prove a

business necessity exists A qualification that is required to perform the job

Allows not only back pay, but compensatory and punitive damages

Limit $300,000

Sexual Harassment Quid Pro Quo Harassment:

One worker demands sexual favors in exchange for some employment related decision

Hostile Work Environment: When a pattern occurs of severe and

demeaning behavior has altered the workplace

Pregnancy Discrimination Act

An employer cannot discriminate against a woman because of childbirth or physical problems associated with pregnancy or childbirth.

Age Discrimination in Employment

Acts (1967 – amended, 1978 - again, 1990) Prohibits employment agencies,

companies of 20+, unions of 25+ from discriminating on the bases of age.

40 or over ~ hiring, firing, promotion

Last amendment protects pension plans

Americans with Disabilities Act

(1990) Forbids discrimination based on disability

(physical or mental impairment)

If they can do the essential functions of the job

EEOC (Equal Employment Opportunity Commission)

Has the power to stop unfair employment practices