3.01 B Union, Union Shops, Employment at will, Unemployment, Social Security, Workers Comp

Employment-at-Will An employer or employee can terminate employment “at-will” for any reason or no reason without being liable for breach of contract Certain types of employees are not subject to employment-at-will laws including employees with contracts and unionized employees.

Union An organization of employees formed to ensure favorable work conditions, wages, work hours, benefits and grievance procedures

Types of Shops Closed shop Employees must join the union before being hired Union shop Non-union employees can by hired, but must join union within a certain amount of time

Types of Shops Agency shop Employees are not required to join the union, yet they still must pay union dues Open shop Employees are not required to join the union or pay union dues

Right to Work Law State law that prohibits employees from requiring employees to join a union or pay union dues as a condition of employment Airline and railway employees are not protected by this law What are the right to work states?

Right to Work States

Unemployment Compensation Insurance program that provides temporary income for qualified individuals who are unemployed through no fault of their own Eligibility requirements for collecting unemployment compensation varies by state The North Carolina Division of Employment Security handles unemployment claims

Unemployment Benefit Requirements In North Carolina, any individual wanting to collect or continue to collect unemployment compensation must: Register for work through the Employment Security Commission File a claim for each week that benefits are needed Actively seek employment during any week unemployment benefits are received

Denial of Unemployment Benefits In North Carolina, an individual may be denied unemployment compensation if he/she: Quits a job Gets fired from a job Refuses a referral job Turns down a job offer Refuses to Approved Commission Training Fails to complete Approved Commission Training

Social Security Act Enacted in 1935 to provide financial assistance to eligible workers and their dependents in the form of retirement, disability, and death benefits The act established the social insurance program commonly called Social Security Federal insurance program funded by the tax contributions of employees and employers

Social Security Disability Benefit Replaces income when a severe long lasting disability or terminal illness prevents eligible person from doing “any substantial work” Claim is filed through the through Social Security Administration Six month required elimination (waiting) period Periodic review of status to continue benefits

Social Security Retirement Benefit Eligible persons can receive a percentage of social security by age 62, but the individual can receive full benefits at either age 65 or 67 A person can receive social security retirement benefits if the spouse dies Medicare is also considered a social security benefit

Social Security Death Benefit Lump sum payment given to the surviving spouse upon the death of a person who worked long enough to qualify for Social Security benefits The average death benefit is $255

Worker’s Compensation A government-regulated program that provides medical benefits and income to employees who are injured or who develop a disability or disease as a result of their job Indemnifies (pays) employee for their loss of income Insurance is paid for by employer