weekly discussion

Q: What are the rights and obligations of employers and employees? (Read Chapter 23).

Goldman | Sigismond
9e
1
CHAPTER
23
Employer-Employee
Relationship
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Part 5 Objectives
After studying Part 5, you should be able
to:
1. Name the federal and state laws that
guarantee rights and benefits to
employees and explain these rights
and benefits.
2. Explain the difference between a
general agent and a special agent. →
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23.2
Part 5 Objectives
3.
Indicate the distinguishing features
between the employer-employee,
principal-agent, and independent
contractor relationships.
4. Describe the ways in which
employer-employee and principalagent relationships may be created.
5. List the duties of an employer or
principal and an employee or agent
within the relationship. →
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23.3
Part 5 Objectives
6. Name the ways in which employeremployee and principal-agent
relationships may be terminated.
7. Discuss when a principal-agent and
an employer-employee may be
liable to third parties for torts and
crimes committed.
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23.4
Learning Objectives
➜ Explain how an employer-employee
relationship may be created.
➜ Identify the rights of employers and
employees.
➜ Explain exceptions to the
termination-at-will doctrine.
➜ Describe the major prohibitions
found in the Taft-Hartley Act. →
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23.5
Learning Objectives
➜ State what legislation has been
enacted to protect an employee’s
health and privacy.
➜ Explain what an employer must do
before hiring an alien.
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23.6
The Employment Process
➜ Employee: one hired to work.
➜ Employer: one who hires another to
work for him or her.
➜ The employment process generally
begins with the completion of an
employment application form.
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23.7
Civil Rights Act
➜ 1964.
➜ Prohibits hiring practices that
discriminate against applicants
because of sex, race, religion, or
nationality.
➜ Exceptions and discrimination.
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23.8
Creation of the Employer-Employee
Relationship
➜ Most often created by contract.
➜ Employee or independent
contractor?
➜ Liability of an employer differs.
➜ Training, how the person is paid, and
term of employment all affect the
legal relationship.
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23.9
Rights of Employers
➜ Expectation that employees saying they
have certain skills actually have those skills.
➜ Employee obligation not to reveal trade
secrets or confidential information learned
on the job.
➜ Implied agreement by employees to work
exclusively for the employer during hours
of employment.
➜ Can fire employee who fails to follow
instructions.
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23.10
Rights of Employees
➜ Regulated to a great extent by
legislation.
➜ Employees hired by a company must
be paid for the work that they do.
➜ A reasonably safe workplace.
➜ Fringe benefits: nonwage advantages
received by an employee from an
employer.
➜ Insurance, sick days, vacation.
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23.11
Access to Personnel Records
➜ Employee’s right to privacy.
1. What information may an employer
maintain about an employee?
2. When does an employee have the
right to examine his or her
personnel records? →
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23.12
Access to Personnel Records
3.
In addition to the employee, who
else may examine an employee’s
personnel records?
4. When is an employer required to
correct inaccurate information or
delete harmful information?
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23.13
Access to Personnel Records
➜ Most state laws regulate procedures
to be followed in examining a
personnel file.
➜ Because of potential lawsuits for
invasion of privacy, libel, or slander,
most employers severely restrict
access to personnel records and
maintain strict security in keeping
such records confidential.
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23.14
Labor-Management Relations
➜ Labor union: organization of
employees formed to promote
welfare of members in relation to
their working conditions.
➜ Collective bargaining: discussions
between union leaders and employer
representatives.
➜ Collective bargaining agreement:
contract negotiated between union
leaders and company representatives.
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23.15
Terminating the EmployerEmployee Relationship
➜ Employment at will: employment
that either the employee or employer
may terminate at any time for any
reason.
➜ The at-will doctrine is gradually
being eroded and modified in most
states.
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23.16
Exceptions to the At-Will Rule
1. Discharges in violation of law.
2. Any discharge of an employee that
goes against some well-defined
public policy.
3. A discharge of an employee when
there is an implied contract for a
period of time. →
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23.17
Exceptions to the At-Will Rule
4. Discharges that violate stated
employee policies and practices.
5. Termination if not done in good
faith.
6. Termination prohibited because of
wrongful employer acts.
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23.18
Termination in Violation of Law
➜ The Civil Rights Act of 1964, Title
VII.
➜ Occupational Safety and Health Act.
➜ The Fair Labor Standards Act.
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23.19
Termination That Goes Against a
Well-Defined Public Policy
➜ Whistle-blower laws: legislation
prohibiting an employer from firing
an employee because the employee
reports that the employer had
violated certain laws.
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23.20
Termination Prohibited Based on an
Implied Contract Term
➜ Rather than looking at any one fact to
conclude that the contract was for a
specific time, the courts will examine
many factors.
➜ Circumstances of hire, type of work,
just cause, hourly or salaried.
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23.21
Discharge Affected by Employee
Policies and Practices
➜ Company policy?
➜ Procedures?
➜ Good cause?
➜ Good reason to quit?
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23.22
Termination Prohibited Because of
Wrongful Employer Acts (Torts)
➜ A few courts have declared
exceptions to the termination-at-will
doctrine based on wrongful acts by
employers.
➜ False pretenses?
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23.23
Termination Prohibited if Not Done
in Good Faith
➜ For example, an employee performs
well over a period of years and the
employer tells the employee that the
job is permanent, but the employee is
then fired without a good reason.
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23.24
Legislation Affecting EmployerEmployee Relations
➜ Labor-management.
➜ Employment discrimination.
➜ Sexual harassment.
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23.25
Labor-Management
➜ Norris-LaGuardia Act (1932).
➜ Wagner Act (1935).
➜ Taft-Hartley Act (1947).
➜ The National Labor Relations Act
(Wagner Act) protects union growth.
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23.26
Shops
➜ Taft-Hartley Act prohibits a closed
shop.
➜ Closed shop: company requiring
union membership as a condition of
employment.
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23.27
Shops
➜ Open shop: business where
employees are not required to join a
union.
➜ Union shop: arrangement whereby
new employees must join a union
within a certain period of time after
being hired.
➜ “Right to work” states.
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23.28
Employment Discrimination
➜ Legislation, regulations, and judicial
decisions now protect employees and
unions.
➜ With few exceptions, these laws apply
to companies with fifteen or more
employees.
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23.29
Civil Rights Act Title VII
➜ Prohibits discrimination by
employers.
➜ The Equal Employment Opportunity
Commission (EEOC).
➜ Affirmative action: duty of employers
to recruit women and minorities for
positions usually held by white men.
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23.30
Civil Rights Act of 1991
➜ Expanded protection against
discrimination and in particular
enables women and persons who
have disabilities to obtain more
damages as a result of discriminatory
practices than were available under
prior laws.
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23.31
Age Discrimination in Employment
Act
➜ Passed in 1967, amended in 1978.
➜ Encourages the employment of
persons between the ages of forty and
sixty-five.
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23.32
Types of Discrimination
➜ Disparate treatment.
➜ Disparate impact.
➜ Perpetuating discrimination.
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23.33
Sexual Harassment
➜ Sex discrimination is prohibited by
federal and state civil rights laws.
➜ Hostile working environment:
1. Ongoing general practice, not
isolated.
2. Interferes with the employee’s job
performance.
3. Employer must have known of the
conduct and failed to prevent it.
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23.34
Equal Pay Act
➜ The Equal Pay Act of 1963 (amended
in 1972) makes it unlawful for
employers to discriminate in the
payment of wages because of gender.
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23.35
Americans With
Disabilities Act (ADA)
➜ The ADA, passed in 1990, prohibits
discrimination in employment
because of a potential employee’s
disabilities.
➜ The term “disability” is broadly
defined.
➜ Also prohibits discrimination on the
basis of disability by private entities
in places of public accommodation.
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23.36
Remedies
➜ Job reinstatement.
➜ Payment of back pay.
➜ Injunction against future violations.
➜ Damages.
➜ Legal fees.
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23.37
Defenses
➜ The available defenses depend on the
law involved and on whether the
alleged discrimination is direct or
indirect.
➜ Direct discrimination involves
obvious discrimination.
➜ Indirect discrimination involves
practices that have an unintended
discriminatory effect.
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23.38
Basic Defenses
➜ Seniority.
➜ Business necessity.
➜ Bona fide occupational qualifications
(BFOQ).
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23.39
Legislation Affecting Employees’
Health and Privacy
➜ OSHA.
➜ Worker’s compensation laws.
➜ SSA.
➜ Pension protection.
➜ FLSA.
➜ FMLA.
➜ HIPAA.
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23.40
OSHA (1970)
➜ The Occupational Safety and Health
Act, a federal statute passed in 1970,
requires most employers to meet
certain health and safety standards
issued by the Department of Labor.
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23.41
Privacy
➜ Employee Polygraph Protection Act
(1988).
➜ Electronic surveillance.
➜ Searches.
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23.42
Workers’ Compensation
➜ Workers’ compensation: state laws
providing benefits to employees who
are injured or become seriously ill on
the job.
➜ Workers are entitled to receive
medical treatment, percentage of
regular wages, payments for
disability, and the time to recover
from injuries.
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23.43
Social Security Act
➜ 1935.
➜ Provides continuing income for
persons covered under the act.
➜ 9 out of 10 workers are covered.
➜ Financed by contributions from
employees and employers.
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23.44
Insurance Provided Under SSA
➜ Old age, survivors’, and disability
insurance.
➜ Medicare.
➜ Part D.
➜ Unemployment insurance.
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23.45
Pension Protection
➜ Employee Retirement Income
Security Act (ERISA) (1974).
➜ ERISA controls the length of time an
employee must work before
becoming vested—that is, before
becoming entitled to pension benefits
that cannot be taken away, the
management of pension funds, and
reporting requirements for
employers.
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23.46
Health Insurance Protection
➜ Consolidated Omnibus Budget
Reconciliation Act (COBRA).
➜ COBRA covers employers who
maintain a health insurance plan and
who employ twenty or more
employees.
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23.47
Wages, Hours, and Minors
➜ Fair Labor Standards Act (FLSA),
also known as the Wage and Hour
Law.
➜ Minimum wage, overtime.
➜ Employment of minors.
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23.48
Family and Medical Leave
➜ Family and Medical Leave Act
(FMLA), (1993).
➜ Employers with 50 or more workers
must give employees up to 12 weeks
of unpaid leave during any 12-month
period for the following:
1. To care for a newborn child.
2. To care for a spouse or other close
relative who has a serious medical
problem. →
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23.49
Family and Medical Leave
3.
To handle an adoption or the
placement of a foster child.
4. To assist an employee who has a
serious medical condition.
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23.50
Family and Medical Leave
➜ In addition to medical and family
leave, the law guarantees that when
the employee returns to work, the
employee will have his or her job
back or an equivalent job, with no
loss of job benefits or seniority rights.
➜ Health benefits continue while the
employee is on leave.
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23.51
Health Insurance Portability and
Accountability Act (HIPAA)
➜ Lowers an employee’s chance of
losing existing coverage.
➜ Makes it easier for an employee to
change health plans.
➜ Helps an employee buy insurance
coverage upon the loss of employersponsored coverage.
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23.52
Veteran’s Benefits
➜ In 1994, Congress enacted the
Uniformed Services Employment and
Reemployment Rights Act
(USERRA), updated in 1996 and
1998.
➜ Provides reemployment protection
and other benefits for veterans and
employees who perform military
service.
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23.53
The Hiring of Aliens
➜ The U.S. Immigration and
Nationality Act of 1903, as amended
by the Immigration Reform and
Control Act of 1986, prohibits the
recruitment or employment of aliens
known to be unauthorized to accept
employment.
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23.54