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Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
• Unit 7 Test on Tuesday, May 14 – study the Terms.
• Turn in each chapter notes and assignment as you get them done and after the quiz. Staple each chapter’s assessment questions to the back of the notes handout.
• All chapter notes, assignments, and extra credit are due the day of the test (if you have not already turned them in).
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
BELL QUIZ ON CHAPTER 191. True/False - Actual authority is the real power a principal
gives to an agent to act on the principals’ behalf.
2. True/False - Implied authority includes all of the orders, commands or directions a principal directly states to an agent.
3. Name ONE of the Agent’s Duties to the Principal
4. Name ONE of the Principal’s Duties to the Agent
5. When a principal fails to notify third parties, what may they be liable for?
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
ANSWERS TO BELL QUIZ
1. True
2. False (Express Authority)
3. Obedience, Good Faith, Loyalty, Account for Money, Judgment and Skill
4. Compensation, Reimbursement, Indemnification, Cooperation
5. Future acts of the agent.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Employment conditions can be divided into three areas
Employment Conditions
health and safety
right to fair wages and benefits
privacy rights
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The federal Occupational Safety and Health Act of 1970 was
enacted by Congress to ensure that employees are protected in
the workplace.
Health and Safety
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The act established the Occupational Safety and Health
Administration (OSHA), the agency within the federal
government that sets safety and health standards for many
companies within the United States.
Health and Safety
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Businesses with 11 or more employees that engage in
interstate commerce must meet OSHA’s health and safety
standards.
Health and Safety
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
OSHA uses two approaches to accomplish its mission.
Health and Safety
1. Imposes upon employers the affirmative duty to maintain a
safe and healthy work environment.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
2. Creates rules that outline the safety steps that businesses
must maintain.
Health and Safety
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: To make certain that employers adhere to OSHA
regulations, the agency randomly inspects workplaces. OSHA also
endeavors to inspect a business when a death or a disaster has
occurred or an employee files a complaint.
Inspections
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The law protects employees who file OSHA complaints.
Employers may be fined for each violation reported by an
employee or discovered during an inspection.
Inspections
Example 1
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
In order to regulate wages, hours, and benefits, the government
has passed several laws that set standards for employment in
American business.
Wages, Hours, and Benefits
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
These laws include
Wages, Hours, and Benefits
Fair Labor Standards Act
Equal Pay Act
Employment Retirement Income Security Act
Family and Medical Leave Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: The Fair Labor Standards Act requires certain employers
to pay their workers a legal minimum hourly wage rate, plus time-
and-a-half for all work over 40 hours per week. It also regulates
the employment of minors.
Fair Labor Standards Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: In 1963, Congress passed the Equal Pay Act as an
amendment to the Fair Labor Standards Act. The amendment
established the equal pay rule.
Equal Pay Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The equal pay rule states that employers engaged in interstate
commerce must pay women the same rate of pay as men holding
the same type of job.
Equal Pay Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The equal pay rule covers
Equal Pay Act
hourly workers
executives
administrators
professional employees
outside salespeople who receive salaries and/or commission
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
A pension plan is a program established by an employer or a
union that is designed to provide income to employees after they
retire.
Employment Retirement
Income Security Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Previously, funds in some employee pension plans were poorly
invested or used for other business expenses. These practices
resulted in losses of retirement benefits to workers and severe
economic hardship for them.
Employment Retirement
Income Security Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The Employment Retirement Income Security Act (ERISA) was
passed to prevent such abuse.
Employment Retirement
Income Security Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: One requirement of the act is that employers must place
employee contributions to pension plans in a trust fund that is
independent of the employer’s control.
Employment Retirement
Income Security Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Family and Medical Leave Act
NOTES: Under the Family and Medical Leave Act, an employee of a
company with at least 50 employees is entitled to 12 weeks of leave during
any 12-month period because of the birth or adoption of a child, or to care
for a spouse, child, or parent who has a serious medical condition.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Three areas of primary concern include
Employee Privacy Rights
privacy for governmental employees
testing employees for drug use
using polygraph (lie detector) test results in the hiring and
firing of employees
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Three laws that relate to these areas of concern are
Employee Privacy Rights
Federal Privacy Act
Drug-Free Workplace Act
Employee Polygraph Protection Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Because of our general aversion to governmental
interference in personal rights, the privacy of government
employees is often given greater emphasis than the privacy of
employees in the private sector.
Federal Privacy Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Under the Federal Privacy Act government employees are given
the right to
Federal Privacy Act
restrict inspection of their employment files
be informed of their employment files
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
be informed of the contents of their employment files
fix any mistake that they might find in those files
Federal Privacy Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The Drug-Free Workplace Act applies to companies that have
contracts with the federal government and aims to create a drug-
free work environment.
Drug-Free Workplace Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Under this act, firms must initiate a plan to make sure
that employees do not use drugs on the job; however, it does not
order companies to include drug testing in their plans.
Drug-Free Workplace Act
Example 2
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
If a drug test is performed improperly, it can violate the Fourth
Amendment to the U.S. Constitution, which prohibits unreasonable
search and seizure.
Drug-Free Workplace Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
As with drug testing, polygraph or lie detector testing can violate
the privacy rights of employees. Congress passed the Employee
Polygraph Protection Act to regulate such testing procedures.
Employee Polygraph
Protection Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: This act prohibits employers from using lie detector tests
either for screening of employment applicants or for random
testing of employees.
Employee Polygraph
Protection Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: The law attempts to protect workers who have left the job
because of retirement, injury, or disability.
The law also provides assistance to workers who have been laid
off or discharged.
Laws Providing Worker Benefits
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Government initiatives to protect workers include
Laws Providing Worker Benefits
social security
unemployment insurance
worker’s compensation
work opportunity
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Social security is a government program that provides continuing
but limited income to workers and their dependents.
Social Security Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: It provides benefits to employees and their families when
their earnings stop or are reduced because of retirement,
disability, or death.
Social Security Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Unemployment compensation is a system of government
payments to people who are out of work and looking for a job.
Unemployment
Compensation Laws
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Payments are made from an unemployment insurance
fund financed by payroll taxes on employers or unemployment
insurance premiums paid by employers.
Unemployment
Compensation Laws
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Workers’ Compensation Laws
Workers’ compensation is an insurance program that provides
income for workers who are injured or develop a disability or
disease as a result of their job.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Workers’ Compensation Laws
NOTES: Employers bear the cost of workers’ compensation. In
most states, employers must pay a tax on their payrolls to fund the
state’s workers’ compensation insurance fund.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Work Opportunity Laws
Welfare, a government system to provide assistance to poor
Americans with dependent children, was criticized for many
reasons. As a result, in 1996, Congress passed the Personal
Responsibility and Work Opportunity Act.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Work Opportunity Laws
This act instituted a new program entitled Temporary Assistance to
Needy Families (TANF).
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Work Opportunity Laws
NOTES: Under TANF, a majority of all welfare recipients must hold
a job, enter career programs or face a loss of payments. This
requirement becomes effective after a recipient has received
benefits during a two-year period.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
During the second half of the twentieth century, Congress enacted
legislation to discourage employment opportunity discrimination.
Section 21.2 Discrimination
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Discrimination is the unequal treatment of individuals based on
sex, age, race, nationality, or religion.
Discrimination
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Congress enacted the following legislation:
Discrimination
The Civil Rights Act of 1964
Civil Rights Act of 1991
Pregnancy Discrimination Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Age Discrimination in Employment Act
Americans with Disabilities Act
Discrimination
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Title VII of the Civil Rights Act of 1964 prohibits
discrimination in employment based on race, color, religion, sex,
or national origin.
These five categories, along with age, are often referred to as
protected classes.
The Civil Rights Act of 1964
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The Equal Employment Opportunity Commission (EEOC) has the
power to stop unfair employment practices by seeking a court
injunction or by suing the employer for damages.
The Civil Rights Act of 1964
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Discrimination can take place through disparate treatment and
disparate impact.
Disparate Treatment
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Under disparate treatment, the employer intentionally
discriminates against an individual or a group of individuals
belonging to one of the protected classes.
Disparate Treatment
Example 4
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Employers have a defense against the charge of disparate
treatment, which is bona fide occupational qualification
(BFOQ).
Disparate Treatment
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: If the employer can show that the qualification in question
is a bona fide (good faith) employment qualification, then the
discrimination may be justified.
Disparate Treatment
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Discrimination can also take place via disparate impact, which is
indirect discrimination.
Disparate Impact
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: This occurs when an employer has an employment policy
or criteria that appears neutral but has an unfair impact on the
members of one or more of the protected classes.
Disparate Impact
Example 5
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Employers have a defense against a charge of disparate impact,
known as business necessity.
Disparate Impact
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
If the employer can show that qualification is required to perform
the job, then it may be permitted despite its disparate impact on a
protected class.
Disparate Impact
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
21.2
Equal Protection in Employment
Employers are not permitted
to discriminate in hiring
practices either directly
through disparate treatment or
indirectly through disparate
impact.
The protection granted to
employees under the Civil
Rights Act includes not only
hiring practices but also
treatment on the job.
Civil Rights Act of 1964
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
The Civil Rights Act of 1991 was enacted by Congress:
Civil Rights Act of 1991
to strengthen the doctrine of disparate impact
to allow plaintiffs to recover not only back pay but also
compensatory and punitive damages
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Sexual harassment can occur either through quid pro
quo harassment or through the creation of a hostile work
environment.
Sexual Harassment
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Quid pro quo harassment occurs when one worker demands
sexual favors from another worker in exchange for some
employment-related decision, such as a raise or a promotion.
Sexual Harassment
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
In contrast, the creation of a hostile working environment occurs
when a pattern of severe and pervasive sexually demeaning
behavior has altered the workplace, making it a distressing,
humiliating, or hostile place.
Sexual Harassment
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
To ensure the fair and equal treatment of pregnant women, the
Pregnancy Discrimination Act was enacted.
Pregnancy Discrimination Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: The law makes it unlawful to discriminate against a
woman because of childbirth or physical problems associated with
pregnancy or childbirth.
Pregnancy Discrimination Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
This act (the ADEA) prohibits employment agencies, employers
with 20 or more employees, and labor unions of more than 25
members from discriminating on the basis of age.
Age Discrimination
in Employment Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: The act forbids discrimination against any person age 40
or older in hiring, firing, promotion, or other aspects of
employment.
Age Discrimination
in Employment Act
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Americans with Disabilities Act
NOTES: This act forbids discrimination on the basis of a disability
if the disabled individual can do the “essential functions” of a job.
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
Americans with Disabilities Act
The act defines disability as any “physical or mental impairment
that substantially limits one or more of the major life activities.”
Example 6
End of Chapter 21
Understanding Business and Personal Law
Laws Relating to Employment Conditions and
Benefits
Section 21.1
Employment Protection and Equal Opportunity
NOTES: Review Section 22.3 Managing Your Debts Terms on
the Unit 7 Terms Handout