Employment and Government Regulation

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Employment and Government Regulation

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Chapter Twelve

Employment and Government Regulation

Business Organizations for ParalegalsReed and Cheeseman

© 2012 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.2 29 - 240 - 2

Chapter Twelve – Objectives

1. Explain how state workers’ compensation programs work and describe the benefits available.

2. Describe employer’s duty to provide safe working conditions under the Occupational Safety and Health Act.

3. Describe the minimum wage and overtime pay rules of the Fair Labor Standards Act.

4. Describe the protections afforded by the Family and Medical Leave Act.

5. Explain the rules governing private pensions under the Employee Retirement Income Security Act.

Business Organizations for ParalegalsReed and Cheeseman

© 2012 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.3 29 - 340 - 3

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.

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Employment at Will(continued)

Statutory Statutory ExceptionsExceptions

Contract Contract ExceptionsExceptions

Public Policy Public Policy ExceptionException

Tort ExceptionsTort Exceptions

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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.

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Workers’ Compensation Acts

Workers’ compensation benefits vary by state. are paid according to preset

limits established by statute or regulation.

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© 2012 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.7 29 - 740 - 7

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.

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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.

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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.

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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.

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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.

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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.

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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.”

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Fair Labor Standards Act (FLSA)

Federal act enacted in 1938 to protect workers.

Prohibits child labor

Establishes minimum wage requirements

Establishes overtime pay requirements

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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.

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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.

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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.

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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.

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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

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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

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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

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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

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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

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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.

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Other Federal Employment Laws (1 of 2)

Law Description

Employee Retirement Income Security Act (ERISA)

Prevents fraud and other abuses associated with private pension plans.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Permits employees and their beneficiaries to continue their group health insurance after an employee’s employment has ended.

Business Organizations for ParalegalsReed and Cheeseman

© 2012 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.26 29 - 2640 - 26

Other Federal Employment Laws (2 of 2)

Law Description

Family and Medical Leave Act (FMLA)

Guarantees workers up to twelve weeks of unpaid leave in a twelve-month period to attend to family and medical emergencies

Immigration Reform and Control Act (IRCA)

Makes it unlawful for employers to hire illegal immigrants. Employers are required to complete INS Form I-9 attesting legal U.S. citizenship or legal alien status of each employee.

Business Organizations for ParalegalsReed and Cheeseman

© 2012 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.27 29 - 2740 - 27

Chapter Twelve – Recap

1. Explain how state workers’ compensation programs work and describe the benefits available.

2. Describe employer’s duty to provide safe working conditions under the Occupational Safety and Health Act.

3. Describe the minimum wage and overtime pay rules of the Fair Labor Standards Act.

4. Describe the protections afforded by the Family and Medical Leave Act.

5. Explain the rules governing private pensions under the Employee Retirement Income Security Act.

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