CHAPTER 22 Employment Law 4/20/2017 CHAPTER 22 Employment Law 22-1 Making and Terminating Employment Contracts 22-2 Duties of Employers and Employees

Employment at Will At-will employees – employees who do not have employment contracts. Wrongful discharge – the discharge of an employee in violation of a statute, an employment contract, or public policy, or tortiously. The employee can recover damages and other remedies.

22-1 Making and Terminating Employment Contracts GOALS Describe how employment contracts are made Explain how employment contracts are terminated Chapter 22

HOW ARE EMPLOYMENT CONTRACTS MADE? Terms of the employment contract Express agreements Implied agreements Terms imposed by law Chapter 22

HOW ARE EMPLOYMENT CONTRACTS TERMINATED? By performance By termination at will Wrongful discharge Violation of contract terms Government employees By material breach Unemployment compensation Chapter 22

22-2 Duties of Employers and Employees GOALS List an employer’s duties Name an employee’s duties

WHAT ARE AN EMPLOYER’S DUTIES? Duties owed to employees Reasonable treatment Safe working conditions Fair labor standards Payroll deductions Military service Voting Chapter 22

WHAT ARE AN EMPLOYER’S DUTIES? (continued) Duties owed to minors State laws Federal law Duties owed to those injured by employees

WHAT ARE AN EMPLOYEE’S DUTIES? Duty to fulfill the employment contract Duty of obedience Duty of reasonable skill Duty of loyalty and honesty Duty of reasonable performance Chapter 22

Workers’ Compensation Acts Acts that compensate workers and their families if workers are injured in connection with their jobs.

Workers’ Compensation Acts Workers’ compensation benefits vary by state. are paid according to preset limits established by statute or regulation.

Workers’ Compensation Insurance States usually require employers to: To pay for workers’ compensation insurance, or To self-insure by making payments into a contingency fund.

Employment Related Injury To recover under workers’ compensation, the worker’s injuries must have been employment-related. Stress may be a compensable work-related injury.

Exclusive Remedy Workers’ compensation is an exclusive remedy. Workers cannot sue their employers in court for damages. Exception occurs when an employer intentionally injures an employee.

Occupational Safety and Health Act (1970) Enacted to promote safety in the workplace. Established the Occupational Safety and Health Administration (OSHA). Virtually all private employers are within the scope of the act. Federal, state, and local governments are exempt.

Occupational Safety and Health Act (continued) The act imposes record keeping and reporting requirements on employers. Employers are required to post notices in the workplace informing employees of their rights under this act. OSHA is empowered to administer the act and adopt rules and regulations to interpret and enforce it.

Occupational Safety and Health Act (continued) OSHA is empowered to inspect places of employment for health hazards and safety violations. If a violation is found, OSHA can issue a written citation. Requires the employer to abate or correct the situation.

Types of OSHA Standards Specific Duty Standard Addresses a safety problem of a specific duty nature. e.g., requirement for a safety guard on a particular type of equipment General Duty Standard Duty that an employer has to provide a work environment “free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.”

Fair Labor Standards Act (FLSA) Federal act enacted in 1938 to protect workers. Prohibits child labor Establishes minimum wage requirements Establishes overtime pay requirements

Child Labor The FLSA forbids the use of oppressive child labor. It is unlawful to ship goods produced by businesses that use oppressive child labor. The Department of Labor defines the standards for lawful child labor.

Minimum Wage and Overtime Pay Managerial, administrative, and professional employees are exempt from the FLSA’s wage and hour provisions. Employers are required to pay covered (non-exempt) workers at least the minimum wage for their regular work hours. Overtime pay is also mandated.

Minimum Wage Set by Congress and can be changed. Employers are permitted to pay less than minimum wage to students and apprentices. An employer may reduce minimum wages by an amount equal to the reasonable cost of food and lodging provided to employees.

Overtime Pay An employer cannot require nonexempt employees to work more than 40 hours per week unless they are paid one-and-a half times their regular pay for each hour worked in excess of 40 hours. Each week is treated separately.

Family and Medical Leave Act Applies to employers with 50 or more workers, federal, state, and local government workers Employee must have worked for employer for at least one year Employee must have performed 1250 hours of work in previous twelve-month period

Family and Medical Leave Act (continued) Provides up to 12 weeks of unpaid leave for: Birth of child Placement of child for adoption or foster care Serious health condition Care for spouse, child, or parent with serious health condition Must use all available sick time and vacation time before it is applied

Family and Medical Leave Act (continued) Employee mist be restored to either same or equivalent position Must be given equivalent pay and benefits No accrual of seniority

Consolidated Omnibus Budget Reconciliation Act (COBRA) Separated employee must be offered the opportunity to continue group health program Separated employee bears cost plus administration fees

Employee Retirement Income Security Act (ERISA) If employer offers a pension plan ERISA applies. Establishes record-keeping and disclosure requirements Sets requirements for vesting Establishes percentage of assets that can be invested in employer’s securities

Immigration Reform and Control Act (IRCA) Administered by U.S. Immigration and Naturalization Service Makes it unlawful to hire illegal immigrants. Employers must keep records. Employers must file I-9.