Transcript THE IMPORTANCE OF CRITICAL THINKING

THE LEGAL ENVIRONMENT
OF BUSINESS
A Critical Thinking Approach
Fourth Edition
Nancy K. Kubasek
Bartley A. Brennan
M. Neil Browne
© 2006 Prentice Hall
Ch. 18-1
THE LEGAL ENVIRONMENT OF BUSINESS
CHAPTER 18
The Employment Relationship
© 2006 Prentice Hall
Ch. 18-2
THE LEGAL ENVIRONMENT OF BUSINESS
The Employment Relationship
Historical employer-employee relationship
“Employment-at-Will”
Increasingly regulated by
federal and state laws
© 2006 Prentice Hall
Ch. 18-3
THE LEGAL ENVIRONMENT OF BUSINESS
Wage and Hour Laws
Fair Labor Standards
Act (FLSA)
Sets minimum wage
40-hour week
Exempt workers
© 2006 Prentice Hall
Ch. 18-4
THE LEGAL ENVIRONMENT OF BUSINESS
Unemployment Compensation
Federal Unemployment Tax Act
Created unemployment fund
States can draw and distribute
funds
Standards differ among the
states
© 2006 Prentice Hall
Ch. 18-5
THE LEGAL ENVIRONMENT OF BUSINESS
onsolidated
mnibus
udget
Continues
employee
benefits after
termination
econciliation
Employee can
keep benefits
for 18 months
ct
60-day decision
window
Penalties for
employer
noncompliance
© 2006 Prentice Hall
Ch. 18-6
THE LEGAL ENVIRONMENT OF BUSINESS
Workers’ Compensation
State law system
Provides funds for injured
workers
“No fault” basis
Covers on-the-job injuries
Funds distributed by agency—
per payment schedule
Trade Off: Workers waive legal remedies in court action
© 2006 Prentice Hall
Ch. 18-7
THE LEGAL ENVIRONMENT OF BUSINESS
Family Medical Leave Act (1993)
Covers absences from work due to
medical problems of workers’ family
members
Applies to public employees and private
business with 50+ workers
Provides 12 weeks in 12-month period
© 2006 Prentice Hall
Ch. 18-8
THE LEGAL ENVIRONMENT OF BUSINESS
FMLA Coverage
Birth or adoption
Foster children
Medical care of spouse, child, or parent
“Serious health condition” of employee
© 2006 Prentice Hall
Ch. 18-9
THE LEGAL ENVIRONMENT OF BUSINESS
FMLA Remedies
Damages for unpaid wages, lost benefits =
12 weeks of pay
Bad faith showing results in double
damages
Reinstatement
Promotion
© 2006 Prentice Hall
Ch. 18-10
THE LEGAL ENVIRONMENT OF BUSINESS
Occupational Safety and Health Act (1970)
Sets standards for
workplace safety
Enforces
regulations via
inspections
© 2006 Prentice Hall
Ch. 18-11
THE LEGAL ENVIRONMENT OF BUSINESS
OSHA Violations and Penalties
Violations: willful or repeat; serious;
nonserious
Penalties: per violation $7,000 to $70,000 per
day
Penalties:
$7,000
per violation
to and
$70,000
Criminal
penalties
of fines
per
day
imprisonment
for violations resulting in
death
© 2006 Prentice Hall
Ch. 18-12
THE LEGAL ENVIRONMENT OF BUSINESS
OSHA Related Agencies
OSHRC: Independent review board for OSHA
citations
NIOSH: Research institution to develop
standards and recommend policies
© 2006 Prentice Hall
Ch. 18-13
THE LEGAL ENVIRONMENT OF BUSINESS
Employee Privacy Rights
New technology in the
workplace has created privacy
issues
Omnibus Crime Control
Act and Electronic
Communications Privacy
Act provides employees
with enforceable privacy
rights in the workplace
© 2006 Prentice Hall
 Employer monitoring of
worker communications
may violate law
 Employers may restrict,
and monitor, email, etc.
 But no eavesdropping
Ch. 18-14
THE LEGAL ENVIRONMENT OF BUSINESS
Related Workplace Privacy Issues
 Surveillance cameras
 Access to medical records
 Drug testing
 Polygraph testing
© 2006 Prentice Hall
Ch. 18-15
THE LEGAL ENVIRONMENT OF BUSINESS
Employer Response
 Company policy statements
 States company rules
 Requires employee to acknowledge
 Removes any “reasonable expectation of
privacy”
© 2006 Prentice Hall
Ch. 18-16
THE LEGAL ENVIRONMENT OF BUSINESS
Drug Testing
Drug-Free Workplace Act 1988
Requires antidrug policies of certain
employers
Testing requirement vs. employee privacy
Pre-employment; periodic; “reasonable
suspicion”; random
© 2006 Prentice Hall
Ch. 18-17
THE LEGAL ENVIRONMENT OF BUSINESS
Other Testing
Employers attempt to prescreen
applicants via tests: skills, medical
Protection against abusive practices:
Employee Polygraph Protection Act
1988
Americans with Disabilities Act
EEOC
© 2006 Prentice Hall
Ch. 18-18
THE LEGAL ENVIRONMENT OF BUSINESS
Global Dimensions of Employment Law
Rights of employees in most
other industrialized
countries are far more
extensive than in U.S.
Europe: generous family leave,
more vacation time
Scandinavia: 5 weeks vacation
time; 10 weeks after five years
© 2006 Prentice Hall
Ch. 18-19