Law for Business and Personal Use © Thomson South-Western CHAPTER 22 Employment Law 22-1Making and...

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

CHAPTER 22Employment Law

22-1 Making and Terminating Employment Contracts

22-2 Duties of Employers and Employees


Employment at Will At-will employees – employees who do not have

employment contracts. Wrongful discharge – the discharge of an employee

in violation of a statute, an employment contract, or public policy, or tortiously.

The employee can recover damages and other remedies.


Chapter 22Slide 3

22-122-1 Making and Terminating Employment Contracts

GOALS Describe how employment contracts

are made Explain how employment contracts

are terminated


Chapter 22Slide 4

HOW ARE EMPLOYMENT CONTRACTS MADE?

Terms of the employment contract Express agreements Implied agreements Terms imposed by law


Chapter 22Slide 5

HOW ARE EMPLOYMENT CONTRACTS TERMINATED?

By performance By termination at will

Wrongful discharge Violation of contract terms Government employees

By material breach Unemployment compensation

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-WesternSlide 6

22-222-2 Duties of Employers and Employees

GOALS List an employer’s duties Name an employee’s duties


Chapter 22Slide 7

WHAT ARE AN EMPLOYER’S DUTIES?

Duties owed to employees Reasonable treatment Safe working conditions Fair labor standards Payroll deductions Military service Voting


WHAT ARE AN EMPLOYER’S DUTIES?

Duties owed to minors State laws Federal law

Duties owed to those injured by employees

(continued)


Chapter 22Slide 9

WHAT ARE AN EMPLOYEE’S DUTIES?

Duty to fulfill the employment contract Duty of obedience Duty of reasonable skill Duty of loyalty and honesty Duty of reasonable performance


Workers’ Compensation ActsWorkers’ Compensation Acts

Acts that compensate workers Acts that compensate workers and their families if workers and their families if workers are injured in connection with are injured in connection with their jobs.their jobs.


Workers’ Compensation Acts Workers’ compensation

benefits

vary by state. are paid according to preset

limits established by statute or regulation.


Workers’ Compensation Insurance

States usually require employers to: To pay for workers’

compensation insurance, or To self-insure by making

payments into a contingency fund.


Employment Related Injury To recover under workers’

compensation, the worker’s injuries must have been employment-related.

Stress may be a compensable work-related injury.


Exclusive Remedy Workers’ compensation is

an exclusive remedy. Workers cannot sue their

employers in court for damages. Exception occurs when an

employer intentionally injures an employee.


Occupational Safety and Health Act (1970)

Enacted to promote safety in the workplace.

Established the Occupational Safety and Health Administration (OSHA).

Virtually all private employers are within the scope of the act.

Federal, state, and local governments are exempt.


Occupational Safety and Health Act (continued)

The act imposes record keeping and reporting requirements on employers.

Employers are required to post notices in the workplace informing employees of their rights under this act.

OSHA is empowered to administer the act and adopt rules and regulations to interpret and enforce it.


Occupational Safety and Health Act (continued)

OSHA is empowered to inspect places of employment for health hazards and safety violations.

If a violation is found, OSHA can issue a written citation.

Requires the employer to abate or correct the situation.


Types of OSHA Standards

Specific Duty Standard Addresses a safety problem of a

specific duty nature. e.g., requirement for a safety guard on a

particular type of equipment

General Duty Standard Duty that an employer has to provide

a work environment “free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.”


Fair Labor Standards Act (FLSA) Federal act enacted in 1938 to

protect workers.

Prohibits child labor

Establishes minimum wage

requirements

Establishes overtime pay

requirements


Child Labor The FLSA forbids the use of

oppressive child labor. It is unlawful to ship goods produced

by businesses that use oppressive child labor.

The Department of Labor defines the standards for lawful child labor.


Minimum Wage and Overtime Pay

Managerial, administrative, and professional employees are exempt from the FLSA’s wage and hour provisions.

Employers are required to pay covered (non-exempt) workers at least the minimum wage for their regular work hours.

Overtime pay is also mandated.


Minimum Wage Set by Congress and can be

changed. Employers are permitted to

pay less than minimum wage to students and apprentices.

An employer may reduce minimum wages by an amount equal to the reasonable cost of food and lodging provided to employees.


Overtime Pay An employer cannot require

nonexempt employees to work more than 40 hours per week unless they are paid one-and-a half times their regular pay for each hour worked in excess of 40 hours.

Each week is treated separately.


Family and Medical Leave Act Applies to employers with

50 or more workers, federal, state, and local government workers

Employee must have worked for employer for at least one year

Employee must have performed 1250 hours of work in previous twelve-month period


Family and Medical Leave Act (continued)

Provides up to 12 weeks of unpaid leave for: Birth of child Placement of child for

adoption or foster care Serious health condition Care for spouse, child, or

parent with serious health condition

Must use all available sick time and vacation time before it is applied


Family and Medical Leave Act (continued)

Employee mist be restored to either same or equivalent position

Must be given equivalent pay and benefits

No accrual of seniority


Consolidated Omnibus Budget Reconciliation Act (COBRA)

Separated employee must be offered the opportunity to continue group health program

Separated employee bears cost plus administration fees


Employee Retirement Income Security Act (ERISA)

If employer offers a pension plan ERISA applies. Establishes record-keeping

and disclosure requirements Sets requirements for

vesting Establishes percentage of

assets that can be invested in employer’s securities


Immigration Reform and Control Act (IRCA)

Administered by U.S. Immigration and Naturalization Service

Makes it unlawful to hire illegal immigrants. Employers must keep

records. Employers must file I-9.

Law for Business and Personal Use © Thomson South-Western CHAPTER 22 Employment Law 22-1Making and...

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