Chapter © 2010 South-Western, Cengage Learning Work Laws and Responsibilities Work-Related Forms and Laws Responsibilities on the Job 5

© 2010 South-Western, Cengage Learning SLIDE 2 Chapter 5 Lesson 5.1 Work-Related Forms and Laws GOALS Discuss the purpose of various work- related forms. Explain the provisions of major employment laws.

© 2010 South-Western, Cengage Learning SLIDE 3 Chapter 5 Required Work Forms When you get a job, the government will require a number of forms containing information about you. You will fill out some. Others, your employer will complete. If you are under age 16, you may also need a work permit. Some forms, such as Forms W-2 and W-4, are part of the income tax process.

© 2010 South-Western, Cengage Learning SLIDE 4 Chapter 5 Form W-4: Employee’s Withholding Allowance Certificate Form W-4 asks for your name, address, Social Security number, marital status, and the number of exemptions you are claiming for income tax purposes. The information determines the amount your employer will withhold from your paycheck for income taxes. Allowances are reductions in the amount of tax withheld from your paycheck. The more allowances claimed = less taxes withheld You may automatically claim yourself; other allowances are for spouse & children Not enough taxes deducted = owe taxes at end of the year

© 2010 South-Western, Cengage Learning SLIDE 5 Chapter 5 Form W-4: Employee’s Withholding Allowance Certificate Exempt status is available only to people who will not earn enough in the year to owe any federal income tax. Can claim if you will not earn enough money to pay taxes The amount of earnings vary per year to qualify If qualify, no taxes will be withheld from your paycheck May be claimed if you owed no taxes in the previous year and qualified for a full refund, and the same for the current year

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SLIDE 7 Chapter 5 Social Security Taxes and Benefits Social Security number is known as your permanent work identification number. Employers withhold Social Security taxes from your pay and contribute matching amounts. The amounts you earn and the amounts contributed for Social Security throughout your work life are credited to your Social Security account number. When you become eligible, usually at retirement, benefits are paid to you monthly, based upon how much you have paid into your account.

© 2010 South-Western, Cengage Learning SLIDE 8 Chapter 5 Social Security Forms Social Security Number Your Social Security number is your permanent work identification number. Social Security Card Application for a card Application for a replacement card Social Security Statement of Earnings Request for Social Security Statement of Earnings

© 2010 South-Western, Cengage Learning

SLIDE 10 Chapter 5 Work Permit Application Many states require minors—people under the age of legal adulthood—to obtain a work permit before they are allowed to work. Signed by parent/legal guardian if under age 16 Where to get a work permit application: Your state Department of Labor School counseling center Work experience coordinator

© 2010 South-Western, Cengage Learning SLIDE 11 Chapter 5 Work Permit Application What you need in order to apply for a work permit: Social Security number Proof of age Permission from your parent or legal guardian There is usually no charge. (continued)

© 2010 South-Western, Cengage Learning SLIDE 12 Chapter 5 Form W-2: Wage and Tax Statement Form W-2 is a summary of the income you earned during the year and all amounts the employer withheld for taxes. Each of your employers must provide you with a Form W-2 for the previous tax year no later than January 31 of the current year. (contact employer if not received) Each of your employers sends a copy of your Form W-2 to the government.

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SLIDE 14 Chapter 5 Form I-9 Before you start working, you and your employer must complete an Employment Eligibility Verification form, or Form I-9. The purpose of this form is to verify the employee’s identity and eligibility to work in the United States. Along with the form, you will be required to present forms of identification, which could include a driver’s license, passport, Social Security card, or birth certificate.

© 2010 South-Western, Cengage Learning SLIDE 15 Chapter 5 Employment Laws The federal government has enacted many laws to protect workers. The Department of Labor is responsible for enforcing labor laws that: Provide unemployment, disability, and retirement insurance benefits Establish a minimum wage and regular working hours Establish rules regarding overtime pay Help workers injured on the job Provide equal employment opportunities and prohibit discrimination Establish safe working conditions

© 2010 South-Western, Cengage Learning SLIDE 16 Chapter 5 Employment Laws Laws covering minors require more safety precautions than for adult workers Laws also specify a max number of hours minors can work during the school year Employees who believe they have not received the protections required by law may turn to the gov’t (Dept. of Labor) for recourse, or remedy. Employers found in violation are subject to… Fines Payment of Damages And other penalties Employees who belie

© 2010 South-Western, Cengage Learning SLIDE 17 Chapter 5 Social Security Act Originally known as OASDHI The Social Security Act, passed in 1935, established a national social insurance program that provides federal aid for the elderly and for disabled workers. The Medicare provision, added in 1965, provides hospital and medical insurance for those 65 and older. Social Security provides these 4 benefits: Old age retirement income (OA) Survivorship income (S) Disability income (D) Health insurance (HI) Benefits received depends on the amount of contribution

© 2010 South-Western, Cengage Learning SLIDE 18 Chapter 5 Unemployment Compensation The Social Security Act requires every state to have an unemployment insurance program. Unemployment insurance provides benefits to workers who lose their jobs through no fault of their own. After a waiting period, laid-off or terminated workers may collect a portion of their regular pay for a certain length of time. Premiums for unemployment insurance are usually paid by employers.

© 2010 South-Western, Cengage Learning SLIDE 19 Chapter 5 Unemployment Compensation Rates do vary; more often employers let workers go = higher the premium Each state has its own regulations: Benefits are paid for maximum of 26 weeks Must wait for at least one week before receiving benefits Worker must have been employed for a minimum period of time (6 mos. to 1 year = varies by state) Minimum amount of earnings ($400 or more per month in most states) Workers fired for valid reasons, usually are not entitled to receive benefits

© 2010 South-Western, Cengage Learning SLIDE 20 Chapter 5 Fair Labor Standards Act The Fair Labor Standards Act, which is also known as the Wage and Hour Act, establishes a minimum wage. It also requires hourly workers to be paid “overtime wages” of 1½ times their hourly rate for hours worked beyond 40 per week. A minimum wage is the lowest wage that an employer may pay an employee as established by law.

© 2010 South-Western, Cengage Learning SLIDE 21 Chapter 5 Fair Labor Standards Act Tips are not considered wages, so they are not included in calculating the min. wage Increases when President/Congress approves it 1938 = $.25/hr1966 = $1/hr 1981 = $3.35/hr 1991 = $4.25/hr1997 = $5.15/hr 2004 = $5.15/hr 2008 = $ = $7.25 Current = _______ U.S. Department of Labor = Follow links to minimum wage information Also, info on state’s Dept. of Labor web site

© 2010 South-Western, Cengage Learning SLIDE 22 Chapter 5 Workers’ Compensation Workers’ compensation is an insurance program that pays benefits to workers and/or their families for injury, illness, or death that occurs as a result of the job. (Often labeled = “liability without fault”) The employer is responsible for employee injuries and illnesses that are the result of employment, regardless of fault. All 50 states have worker’s compensation laws Benefits include payment to: Doctors & hospitals Employees for temporary or permanent disability Survivors in the event of death

© 2010 South-Western, Cengage Learning SLIDE 23 Chapter 5 Family and Medical Leave Act The Family and Medical Leave Act (FMLA) of 1993 allows employees to take up to 12 weeks of unpaid leave in a 12-month period for certain medical and family situations. Some employers may choose to pay employees during some types of leave, such as sick leave, but they are not required by law to do so.

© 2010 South-Western, Cengage Learning SLIDE 24 Chapter 5 Family and Medical Leave Act Valid circumstances for unpaid leave under the FMLA include the following: Birth and care of a newborn child, including adoption of a child Care of an immediate family member (spouse, child, or parent) with a serious health condition Medical leave when the employee is unable to work because of a serious health condition (continued)

© 2010 South-Western, Cengage Learning SLIDE 25 Chapter 5 Laws Against Discrimination in Employment Equal Pay Act - prohibits unequal pay for men & women doing substantially similar work Civil Rights Act of prohibits discrimination in hiring, training, & promotion on the basis of race, gender, religion, or national origin Age Discrimination in Employment Act – prohibits discrimination in employment decisions against people age 40 and over Americans with Disabilities Act - prohibits discrimination on the basis of physical or mental disabilities *These laws are enforced by the EEOC = Equal Employment Opportunity Commission

© 2010 South-Western, Cengage Learning SLIDE 26 Chapter 5 Lesson 5.2 Responsibilities on the Job GOALS Discuss employee responsibilities at work. Describe employer responsibilities to employees.

© 2010 South-Western, Cengage Learning SLIDE 27 Chapter 5 Responsibilities to Employers Competent work The work needs to be marketable—that is, of such quality that the employer can sell it or use it to favorably represent the company. Punctuality Punctuality means being ready to start work at the appointed time.

© 2010 South-Western, Cengage Learning SLIDE 28 Chapter 5 Responsibilities to Employers Pleasant attitude Pleasant and easy to get along with Courteous to customers Loyalty and respect Loyalty means that you show respect for your employer and the company for which you work, both on and off the job. (continued)

© 2010 South-Western, Cengage Learning SLIDE 29 Chapter 5 Responsibilities to Employers Dependability Dependability is a character trait that means you can be counted on to do what you say you will do. Initiative Initiative is taking the lead, recognizing what needs to be done, and doing it without having to be told. (continued)

© 2010 South-Western, Cengage Learning SLIDE 30 Chapter 5 Responsibilities to Employers Interest You should project an attitude of wanting to learn all you can and of giving all tasks your best effort. Self-evaluation The ability to take criticism and to assess your own progress is important to you and your employer. (continued)

© 2010 South-Western, Cengage Learning SLIDE 31 Chapter 5 Responsibilities to Other Employees Teamwork Teamwork means working cooperatively in order to achieve a group goal. Thoughtfulness Be considerate of coworkers to promote a good work atmosphere for everyone, including customers. Loyalty In addition to being loyal to your employer, you should be loyal to coworkers.

© 2010 South-Western, Cengage Learning SLIDE 32 Chapter 5 Responsibilities to Customers Failure to meet these can result in: High employee turnover rate Increased premiums for unemployment insurance Fines for unfair labor practices Helpfulness Identify what customer wants Solve problems Courtesy and respect Your attitude toward customers should always be respectful and courteous, never hostile or unfriendly.

© 2010 South-Western, Cengage Learning SLIDE 33 Chapter 5 Employer Responsibilities Adequate supervision Supervision is providing new and current employees with the information and training they need to do their jobs well. Fair human resource policies Policies on hiring, firing, raises, promotions, and dispute resolution need to be fair and well defined.

© 2010 South-Western, Cengage Learning SLIDE 34 Chapter 5 Employer Responsibilities Safe working conditions Safe equipment Safe working environment Adequate training for working under dangerous conditions Open channels of communication Express concerns. Ask questions. Make suggestions. (continued)

© 2010 South-Western, Cengage Learning SLIDE 35 Chapter 5 Employer Responsibilities Recognition of achievement An employee evaluation is a report that discusses the employee’s strengths and weaknesses in performing the job and how well the employee helped to meet company goals. As a result of evaluations, employees are given merit pay raises, bonuses, and advancement opportunities. (continued)

© 2010 South-Western, Cengage Learning