Prentice Hall © PowerPoint Slides to accompany THE LEGAL ENVIRONMENT OF BUSINESS AND ONLINE COMMERCE 5E, by Henry R. Cheeseman Chapter 20 Employment and Worker Protection Laws

Prentice Hall © Employment at Will Employees who do not have an employment contract are employees at will. Employees at will may be discharged by an employer at any time for any reason. An employee who has been wrongfully discharged may sue his or her former employer.

Prentice Hall © Exceptions to Employment at Will Statutory exceptions include: Federal labor laws Title VII and other federal and state antidiscrimination laws Contract exception In some situations, an implied-in-fact contract may be created.

Prentice Hall © Exceptions to Employment at Will Public policy exception Employee cannot be discharged if such discharge would violate public policy. Examples: discharge for serving on a jury or for refusal to violate a law Tort exception Fraud Intentional infliction of emotional distress Defamation of character

Prentice Hall © Workers’ Compensation Workers’ compensation compensates workers and their families for injuries received on the job. Workers’ compensation acts create an administrative procedure. Claim is filed with the state agency. Agency determines legitimacy of the claim. Benefits are paid according to statutory limits.

Prentice Hall © Characteristics of Workers’ Compensation Insurance – most states require employers to purchase insurance to cover claims. Employment-related injury Injury must arise out of and in the course of employment. Injuries received off-premises or during personal time are generally not covered. Exclusive remedy – workers cannot sue their employers for work-related injuries.

Prentice Hall © Occupational Safety Occupational Safety and Health Act was enacted to promote workplace safety. The Occupational Safety and Health Administration (OSHA) enforces the Act.

Prentice Hall © Specific and General Duty Standards Specific duty standards Address specific safety problems Examples include safety requirements for equipment, maximum exposure levels General duty standard All employers must provide a work environment free from recognized hazards that are causing or are likely to cause death or serious physical harm.

Prentice Hall © Fair Labor Standards Act (FLSA) Child labor restrictions Minimum wage Overtime pay Nonexempt employee must be paid one-and- one-half times their regular pay for each hour worked in excess of 40 hours in one week.

Prentice Hall © Family and Medical Leave Act (FMLA) FMLA guarantees workers unpaid time off for medical emergencies. Applies to companies with 50 or more employees and government employees. An employee must have worked for employer for at least one year.

Prentice Hall © FMLA Leave Employers must provide up to 12 weeks unpaid leave for: Birth of and care for a child Placement of a child with employee for adoption or foster care A serious health condition Care for spouse, child, or parent with a serious health problem

Prentice Hall © Consolidated Omnibus Budget Reconciliation Act (COBRA) Employee of a private employer or employee’s beneficiaries must be offered the opportunity to continue group health insurance after his or her employment has ended. Employee must pay the group rate premium in order to continue coverage.

Prentice Hall © Employee Retirement Income Security Act Requires pension plans to be in writing Plan manager owes a fiduciary duty in managing the fund. No more than 10% of plan assets may be invested in the sponsoring employer’s securities. Establishes rules for vesting of employee’s interest in employer contributions to the plan.

Prentice Hall © Immigration Reform and Control Act of 1986 (IRCA) It is unlawful for employers to hire illegal aliens. All U.S. employers must complete an I-9 form for each employee showing that employee is qualified to work in the U.S.

Prentice Hall © Employee Testing Drug testing Preemployment screening has been upheld by courts. Current employees may be screened in cases where the employer has a reasonable suspicion or after an accident. Polygraph testing Employee Polygraph Protection Act prohibits most private employers from using polygraphs for job applicants or employees.

Prentice Hall © Government Programs Unemployment compensation States administer programs and set eligibility requirements. To be eligible, applicants must be able and available for work and seeking employment.

Prentice Hall © Government Programs Social Security benefits include: Retirement benefits Survivors’ benefits Disability benefits Medical and hospitalization (Medicare)