Transcript A39
Twomey Jennings
Anderson’s Business Law and the Legal Environment, Comprehensive 20e
Anderson’s Business Law and the Legal Environment, Standard 20e
Business Law: Principles for Today’s Commercial Environment 2e
Chapter 39
Regulation of Employment
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The Employment Relationship
• The relationship of employer and
employee is created by the agreement of
the parties and is subject to contract
principles.
– If the contract states a specific duration, the
employer cannot terminate the contract at
an earlier date unless just cause exists.
• Collective Bargaining Contracts.
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Employment Relationship
• If no definite time period is set forth,
the individual is an at-will employee,
and the employer can terminate the
contract at any time.
– Some courts limit this if the discharge
violates public policy or is contrary to
good faith and fair dealing in the
employment relationship.
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Employment Relationship
• Justifiable Discharge.
• Whistle-Blower Protection under the
Sarbanes-Oxley Act (2002).
– Contains reforms for corporate
accountability, disclosure, and liability for
corporate records.
– Title VII contains protections for corporate
whistle-blowers.
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Employment Relationship
Consent
Employer
Pays
Compensation
Employee
(Individual or Collective
Bargaining Agreement)
Performs services/works
under employer’s
direction and control
Independent
Contractor
Perform duties free from
control by other party
Agent
Negotiates contracts on
behalf of an under
control of principal
Differs from:
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Labor Relations Laws
• The Fair Labor Standards Act regulates
minimum wages, overtime hours, and
child labor.
• Under the National Labor Relations Act,
employees have the right to form a union
to obtain a collective bargaining contract
or to refrain from organizational
activities.
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Labor Relations Laws
• National Labor Relations Act.
• National Labor Relations Board.
– NLRB promotes union election conduct.
– Union activity on private property.
– Firing employees for union activities.
• Once a union certified, employers have a duty
to bargain collectively.
• NRLA allows right to work laws.
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Labor Relations Laws
• Strike and picketing activities.
– Rights of strikers. Economic strikers may
not be entitled to return to work at the end of
the strike.
– Picketing: Primary picketing, mass
picketing, or secondary picketing.
• Regulation of internal affairs.
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Pension Plans
• The Employees Retirement Income
Security Act (ERISA) protects
employees’ pensions by requiring:
– (1) high standards of those administering the
funds,
– (2) reasonable vesting of benefits,
– (3) adequate funding, and
– (4) an insurance program to guarantee
payments of earned benefits.
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Unemployment Benefits
• Unemployment compensation benefits
are paid to persons for a limited period
of time if they are out of work through
no fault of their own.
• Persons receiving unemployment
compensation must be available for
placement in a job similar in duties and
comparable in rate of pay to the job
they lost.
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Benefits Provided by Law
• Twelve-week maternity, paternity, and
adoption leaves are available under the
Family and Medical Leave Act.
• Leaves for Military Service under USERRA.
• Employers and employees pay Social
Security taxes to provide retirement benefits,
disability benefits, life insurance benefits,
and Medicare.
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Employees’ Health & Safety
• The Occupational Safety and Health Act
provides for:
– (1) the establishment of safety and health standards
and
– (2) the effective enforcement of these standards.
• Many states have enacted “right-to-know”
laws, which require employers to inform their
employees of any hazardous substances
present in the workplace.
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Regulation of Working
Conditions
Working Conditions
Wages
and
Hours
Fair Labor
Standards
Act
Privacy
Drug
Testing
Safety
E-Mail
Monitoring
OSHA
Contract
Terms
National Labor
Relations Act
Sweat Shop
Code
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Compensation for
Employees’ Injuries
• Workers’ compensation laws provide for the
prompt payment of compensation and medical
benefits to persons injured in the course of
employment without regard to fault.
– An injured employee’s remedy is generally limited
to the remedy provided by the workers’
compensation statute.
– Most states also provide compensation to workers
for occupational diseases.
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Employee Privacy
• The Bill of Rights is the source of public sector
employees’ privacy rights.
• Private sector employees may obtain limited
privacy rights from statutes, case law, and
collective bargaining agreements.
• Employers may monitor employee telephone
calls, although once it is determined that the call
is personal, the employer must stop listening or
be in violation of the federal wiretap statute.
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Employee Privacy
• The ordinary-course-of-business and consent
exceptions to the Electronic Communications
Privacy Act of 1986 (ECPA) give private
employers a great deal of latitude to monitor
employee E-mail.
• Notification to employees of employers’ policies
on searching lockers, desks, and offices reduces
employees’ expectations of privacy, and a search
conducted in conformity with a known policy is
generally not an invasion of privacy.
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Employee Privacy
• Drug and alcohol testing is generally
permissible if it is based on reasonable
suspicion; random drug and alcohol
testing may also be permissible in safetysensitive positions.
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Employer-Related
Immigration Laws
• Immigration laws prohibit the
employment of aliens who have illegally
entered the United States.
• Employer liability.
• Employer verification and special hiring
programs.
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