Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Unit 7 Test on Tuesday, May 14 – study the Terms. Turn in each chapter notes and assignment as you get them done and after the quiz. Staple each chapter’s assessment questions to the back of the notes handout. All chapter notes, assignments, and extra credit are due the day of the test (if you have not already turned them in).

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity BELL QUIZ ON CHAPTER 19 1.True/False - Actual authority is the real power a principal gives to an agent to act on the principals’ behalf. 2.True/False - Implied authority includes all of the orders, commands or directions a principal directly states to an agent. 3.Name ONE of the Agent’s Duties to the Principal 4.Name ONE of the Principal’s Duties to the Agent 5.When a principal fails to notify third parties, what may they be liable for?

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity ANSWERS TO BELL QUIZ 1.True 2.False (Express Authority) 3.Obedience, Good Faith, Loyalty, Account for Money, Judgment and Skill 4.Compensation, Reimbursement, Indemnification, Cooperation 5.Future acts of the agent.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Employment conditions can be divided into three areas Employment Conditions health and safety right to fair wages and benefits privacy rights

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The federal Occupational Safety and Health Act of 1970 was enacted by Congress to ensure that employees are protected in the workplace. Health and Safety

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The act established the Occupational Safety and Health Administration (OSHA), the agency within the federal government that sets safety and health standards for many companies within the United States. Health and Safety

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Businesses with 11 or more employees that engage in interstate commerce must meet OSHA’s health and safety standards. Health and Safety

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity OSHA uses two approaches to accomplish its mission. Health and Safety 1.Imposes upon employers the affirmative duty to maintain a safe and healthy work environment.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity 2.Creates rules that outline the safety steps that businesses must maintain. Health and Safety

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: To make certain that employers adhere to OSHA regulations, the agency randomly inspects workplaces. OSHA also endeavors to inspect a business when a death or a disaster has occurred or an employee files a complaint. Inspections

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The law protects employees who file OSHA complaints. Employers may be fined for each violation reported by an employee or discovered during an inspection. Inspections Example 1

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity In order to regulate wages, hours, and benefits, the government has passed several laws that set standards for employment in American business. Wages, Hours, and Benefits

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity These laws include Wages, Hours, and Benefits Fair Labor Standards Act Equal Pay Act Employment Retirement Income Security Act Family and Medical Leave Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: The Fair Labor Standards Act requires certain employers to pay their workers a legal minimum hourly wage rate, plus time-and-a-half for all work over 40 hours per week. It also regulates the employment of minors. Fair Labor Standards Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: In 1963, Congress passed the Equal Pay Act as an amendment to the Fair Labor Standards Act. The amendment established the equal pay rule. Equal Pay Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The equal pay rule states that employers engaged in interstate commerce must pay women the same rate of pay as men holding the same type of job. Equal Pay Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The equal pay rule covers Equal Pay Act hourly workers executivesadministrators professional employees outside salespeople who receive salaries and/or commission

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity A pension plan is a program established by an employer or a union that is designed to provide income to employees after they retire. Employment Retirement Income Security Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Previously, funds in some employee pension plans were poorly invested or used for other business expenses. These practices resulted in losses of retirement benefits to workers and severe economic hardship for them. Employment Retirement Income Security Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The Employment Retirement Income Security Act (ERISA) was passed to prevent such abuse. Employment Retirement Income Security Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: One requirement of the act is that employers must place employee contributions to pension plans in a trust fund that is independent of the employer’s control. Employment Retirement Income Security Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Family and Medical Leave Act NOTES: Under the Family and Medical Leave Act, an employee of a company with at least 50 employees is entitled to 12 weeks of leave during any 12-month period because of the birth or adoption of a child, or to care for a spouse, child, or parent who has a serious medical condition.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Three areas of primary concern include Employee Privacy Rights privacy for governmental employees testing employees for drug use using polygraph (lie detector) test results in the hiring and firing of employees

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Three laws that relate to these areas of concern are Employee Privacy Rights Federal Privacy Act Drug-Free Workplace Act Employee Polygraph Protection Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Because of our general aversion to governmental interference in personal rights, the privacy of government employees is often given greater emphasis than the privacy of employees in the private sector. Federal Privacy Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Under the Federal Privacy Act government employees are given the right to Federal Privacy Act restrict inspection of their employment files be informed of their employment files

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity be informed of the contents of their employment files fix any mistake that they might find in those files Federal Privacy Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The Drug-Free Workplace Act applies to companies that have contracts with the federal government and aims to create a drug-free work environment. Drug-Free Workplace Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Under this act, firms must initiate a plan to make sure that employees do not use drugs on the job; however, it does not order companies to include drug testing in their plans. Drug-Free Workplace Act Example 2

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity If a drug test is performed improperly, it can violate the Fourth Amendment to the U.S. Constitution, which prohibits unreasonable search and seizure. Drug-Free Workplace Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity As with drug testing, polygraph or lie detector testing can violate the privacy rights of employees. Congress passed the Employee Polygraph Protection Act to regulate such testing procedures. Employee Polygraph Protection Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: This act prohibits employers from using lie detector tests either for screening of employment applicants or for random testing of employees. Employee Polygraph Protection Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: The law attempts to protect workers who have left the job because of retirement, injury, or disability. The law also provides assistance to workers who have been laid off or discharged. Laws Providing Worker Benefits

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Government initiatives to protect workers include Laws Providing Worker Benefits social security unemployment insurance worker’s compensation work opportunity

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Social security is a government program that provides continuing but limited income to workers and their dependents. Social Security Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: It provides benefits to employees and their families when their earnings stop or are reduced because of retirement, disability, or death. Social Security Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Unemployment compensation is a system of government payments to people who are out of work and looking for a job. Unemployment Compensation Laws

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Payments are made from an unemployment insurance fund financed by payroll taxes on employers or unemployment insurance premiums paid by employers. Unemployment Compensation Laws

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Workers’ Compensation Laws Workers’ compensation is an insurance program that provides income for workers who are injured or develop a disability or disease as a result of their job.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Workers’ Compensation Laws NOTES: Employers bear the cost of workers’ compensation. In most states, employers must pay a tax on their payrolls to fund the state’s workers’ compensation insurance fund.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Work Opportunity Laws Welfare, a government system to provide assistance to poor Americans with dependent children, was criticized for many reasons. As a result, in 1996, Congress passed the Personal Responsibility and Work Opportunity Act.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Work Opportunity Laws This act instituted a new program entitled Temporary Assistance to Needy Families (TANF).

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Work Opportunity Laws NOTES: Under TANF, a majority of all welfare recipients must hold a job, enter career programs or face a loss of payments. This requirement becomes effective after a recipient has received benefits during a two-year period.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity During the second half of the twentieth century, Congress enacted legislation to discourage employment opportunity discrimination. Section 21.2 Discrimination

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Discrimination is the unequal treatment of individuals based on sex, age, race, nationality, or religion. Discrimination

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Congress enacted the following legislation: Discrimination The Civil Rights Act of 1964 Civil Rights Act of 1991 Pregnancy Discrimination Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Age Discrimination in Employment Act Americans with Disabilities Act Discrimination

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment based on race, color, religion, sex, or national origin. These five categories, along with age, are often referred to as protected classes. The Civil Rights Act of 1964

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The Equal Employment Opportunity Commission (EEOC) has the power to stop unfair employment practices by seeking a court injunction or by suing the employer for damages. The Civil Rights Act of 1964

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Discrimination can take place through disparate treatment and disparate impact. Disparate Treatment

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Under disparate treatment, the employer intentionally discriminates against an individual or a group of individuals belonging to one of the protected classes. Disparate Treatment Example 4

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Employers have a defense against the charge of disparate treatment, which is bona fide occupational qualification (BFOQ). Disparate Treatment

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: If the employer can show that the qualification in question is a bona fide (good faith) employment qualification, then the discrimination may be justified. Disparate Treatment

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Discrimination can also take place via disparate impact, which is indirect discrimination. Disparate Impact

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: This occurs when an employer has an employment policy or criteria that appears neutral but has an unfair impact on the members of one or more of the protected classes. Disparate Impact Example 5

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Employers have a defense against a charge of disparate impact, known as business necessity. Disparate Impact

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity If the employer can show that qualification is required to perform the job, then it may be permitted despite its disparate impact on a protected class. Disparate Impact

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity 21.2 Equal Protection in Employment Employers are not permitted to discriminate in hiring practices either directly through disparate treatment or indirectly through disparate impact. The protection granted to employees under the Civil Rights Act includes not only hiring practices but also treatment on the job. Civil Rights Act of 1964

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity The Civil Rights Act of 1991 was enacted by Congress: Civil Rights Act of 1991 to strengthen the doctrine of disparate impact to allow plaintiffs to recover not only back pay but also compensatory and punitive damages

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Sexual harassment can occur either through quid pro quo harassment or through the creation of a hostile work environment. Sexual Harassment

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Quid pro quo harassment occurs when one worker demands sexual favors from another worker in exchange for some employment- related decision, such as a raise or a promotion. Sexual Harassment

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity In contrast, the creation of a hostile working environment occurs when a pattern of severe and pervasive sexually demeaning behavior has altered the workplace, making it a distressing, humiliating, or hostile place. Sexual Harassment

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity To ensure the fair and equal treatment of pregnant women, the Pregnancy Discrimination Act was enacted. Pregnancy Discrimination Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: The law makes it unlawful to discriminate against a woman because of childbirth or physical problems associated with pregnancy or childbirth. Pregnancy Discrimination Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity This act (the ADEA) prohibits employment agencies, employers with 20 or more employees, and labor unions of more than 25 members from discriminating on the basis of age. Age Discrimination in Employment Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: The act forbids discrimination against any person age 40 or older in hiring, firing, promotion, or other aspects of employment. Age Discrimination in Employment Act

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Americans with Disabilities Act NOTES: This act forbids discrimination on the basis of a disability if the disabled individual can do the “essential functions” of a job.

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity Americans with Disabilities Act The act defines disability as any “physical or mental impairment that substantially limits one or more of the major life activities.” Example 6 End of Chapter 21

Understanding Business and Personal Law Laws Relating to Employment Conditions and Benefits Section 21.1 Employment Protection and Equal Opportunity NOTES: Review Section 22.3 Managing Your Debts Terms on the Unit 7 Terms Handout