WORK LAWS AND RESPONSIBILITIES Chapter 5

Required Work Forms  Form W-4: Employee’s Withholding Allowance Certificate  Social Security forms  Work permit application  Form W-2: Wage and Tax Statement

Employee’s Withholding Allowance Certificate (Form W-4) Determine the amount your employer will withhold from your paycheck for income taxes. The employer will send this money to the government.

Allowances  A number that reduces the amount of tax withheld from your paycheck.  The more allowances claimed, the less tax is withheld from the paycheck.  Increase in allowances claimed does not decrease the tax you will owe.

Exempt status  Only applies if meet the conditions  Earn no more than $9,  A full-time student  Under the age of 23  Claimed as a dependent by someone else.  If all true, no taxes withheld from paycheck.

Social Security Number  Permanent work ID number  Employer holds social security taxes from paycheck and contributes matching amounts. Amounts are credited through the Social Security Administration and assigned to your SSN.  Once you become eligible, monthly benefits will be paid to you based upon how much you have paid into your account.  Can view online statement to view how much paid in and projected monthly payments upon retirement.

Work Permit  Under the age of 16. Must be obtain before becoming eligible to work.  Obtain the application from Guidance o Intention to Employ Form – Completed by the employer. o Permission for employment – completed by the parents/guardians. o Need to provide proof of age.

Wage and Tax Statement (Form W-2) A summary of the income that you earned that year and the amounts the employer withheld for taxes. These amounts include federal, state, and local incomes taxes; social security and Medicare taxes. Must be provided no late than January 31 of the following year.

Employment Laws Enacted by Congress to protect workers. Laws that: 1. Provide unemployment, disability, and retirement insurance benefits. 2. Establish a minimum wage and regular working hours. 3. Help workers injured on the job. 4. Provide equal employment opportunities and prohibit discrimination. 5. Establish safe working conditions.

Employment Laws Laws covering minors specify: 1. Safety precautions and working conditions that are more extensive than adults. 2. A maximum number of hours and times minors can work during the school year. 3. A work permit for those under the age of 16.

Social Security Act  Passed in 1935  Established national social security insurance program that provides aid to the elderly and for disabled workers.  1965 – Medicare provision was added.

Social Security Act Provides these benefits:  Old age retirement income  Survivorship income  Disability income  Health insurance

Unemployment Compensation  Provides benefits to workers who lose their jobs through no fault of their own.  After waiting period, collect certain portion of regular pay for a certain length of time.  State program with each state having its own regulations

Unemployment Compensation Usually benefits are paid for a maximum of 26 weeks. To receive benefits, a worker must have been:  employed for a minimum period of time (6 months – 1 year).  For a minimum amount of earnings ($400 or more per month). Workers fired for a good reason are usually not entitled to receive benefits.

Fair Labor Standards Act  Established a minimum wage (currently $7.25/Hour)  Requires workers to be paid overtime wages (1 ½ times their hourly wage) beyond 40 hours per week.  Tips are not considered wages and not included in calculating the minimum wage.  Some states require a higher minimum wage that the federal government requires.

Federal Minimum Wage Effective Date Hourly Wage Effective Date Hourly Wage Effective Date Hourly Wage 10/24/1938$0.2502/01/1968$1.6004/01/1990$ /24/ /01/ /01/ /24/ /01/ /01/ /25/ /01/ /01/ /01/ /01/ /24/ /03/ /01/ /24/ /03/ /01/ /24/ /01/ /01/

Workers’ Compensation  An insurance program that pays benefits to workers and their families for injury, illness, or death that occurs as a result of the job.  Employers pay the insurance premiums in most states.  Some states require employees to pay all or part of the premium.

Family and Medical Leave Act (FMLA)  Established in 1993  Allows employees to take up to 12 weeks of unpaid leave in a 12-month period for certain medical and family situations. o Valid circumstances are: Birth and care of newborn child including adoption Care of immediate family member with a serious health condition. Medical leave when the employee is unable to work because of a serious medical condition.

Laws Against Discrimination in Employment  Equal Pay Act  Civil Rights Act of 1964  Age Discrimination in Employment Act  Americans with Disabilities Act Laws enforced by the Equal Employment Opportunity Commission (EEOC). o Discrimination complaints are filed with the EEOC.

RESPONSIBILITIES ON THE JOB Lesson 5.2

Employee Responsibilities  Responsibilities to employers  Responsibilities to other employees  Responsibilities to customers

Responsibilities to Employers  Competent work  Punctuality  Pleasant attitude  Loyalty and respect  Dependability  Initiative  Interest  Self-evaluation

Responsibilities to Other Employees  Teamwork  Need to do your share of the work  Thoughtfulness  Be considerate of co-workers  Loyalty  Employer as well as co-workers

Responsibilities to Customers As an employee, you represent the company. You have a responsibility to display:  Helpfulness  Courtesy and respect

Employer Responsibilities Have responsibilities to employees. Some are required by law while others are sensible practices to keep employees happy and on the job. Failure to meet responsibilities:  High employee turnover  Increased unemployment premiums  Fines for unfair labor practices

Employer Responsibilities  Adequate supervision  Provide instruction  Train new employees  Help employees solve problems  Distribute information (downward & upward)  Fair human resource policies  Hiring, firing, raises, advancement, and dispute resolution  Clearly defined acceptable and unacceptable performance  Standards for advancement and raises  Grounds for suspension or discharge

Employer Responsibilities  Safe working conditions  Provide employees with safe equipment, working conditions, and adequate training  Special protective equipment and clothing  Minors have stricter working conditioning laws  Open channels of communication  Opportunity to express o Concerns o Ask questions o Make suggestions  Lack of open communication results in poor morale and lower work output

Employer Responsibilities  Recognition of achievement  Reward for above-average performance o Merit pay raises, bonuses, and advancement opportunities o Also respond to non-monetary rewards Time off Recognition in front of peers  Compliance with employment laws  State and federal laws  Employer is responsible for observing employees’ rights o Failure to do so can result in severe penalties