Employment Laws. Introduction The federal government has enacted many laws to protect workers. The Department of Labor is responsible for enforcing labor.

Employment Laws

Introduction

The federal government has enacted many laws to protect workers.

The Department of Labor is responsible for enforcing labor laws that: Provide

unemployment, disability, and retirement insurance benefits

Introduction

…labor laws that: Establish minimum

wage and regular working hours

Establish rules regarding overtime pay

Help workers injured on the job

Provide equal employment opportunities and prohibit discrimination

Establish safe working conditions

Introduction

Laws also specify a maxi-mum number of hours minors can work during the school year.

A work permit for those under age 16 is required in some states

Employees who believe they have not received the protections required by law may turn to the Department of Labor for recourse, or remedy.

Social Security Act

Passed in 1935Established a national

social insurance program that provides federal aid for the elderly and for disabled workers.

Social Security Act

In 1965 the Medicare provision was added.

It provides hospital and medical insurance for those 65 and older

Social Security provides these benefits: Old age retirement

income Survivorship income Disability income Health insurance

Social Security Act

Benefits received depend on the amount of contri-butions made

Contributions are mandatory for all workers

Employers deduct Social Security and Medicare taxes from employee’s pay and send it to the U.S. Treasury for crediting to your SS account

Social Security Act

Self employed workers pay their Social Security contributions when they pay their income taxes

Unemployment Compensation

The Social Security Act requires every state to have an unemployment insurance program

Unemployment insurance provides benefits to workers who lose their jobs through no fault of their own.

Unemployment Compensation

After a waiting period, laid-off or terminated workers may collect a portion of their regular pay for a certain length of time

Premiums for unemployment insurance are usually paid by employers

Unemployment Compensation

Usually benefits are paid for a maximum of 26 weeks through the local state employment office

In most states, an unemployed worker must wait for at least one week before receiving benefits

Unemployment Compensation

To receive benefits a worker must have been employed for a minimum period of time (6 months to 1 year) (depending on the state)

And…for a minimum amount of earnings ($400 or more per month in most states)

Unemployment Compensation

Workers fired for a valid reason such as poor performance, are usually not entitled to receive benefits.

Fair Labor Standards Act

Also known as the Wage and Hour Act, establishes a minimum wage

It also requires hourly workers to be paid over-time wages of 1 ½ times their hourly rate for hours worked beyond 40 per week

A minimum wage is the lowest wage that an employer may pay an employee

$7.25

Workers’ Compensation

Workers’ compensation is an insurance program that pays benefits to workers and/or their families for injury, illness, or death that occurs as a result of the job.

Workers’ Compensation

The employer is responsible for employee injuries and illnesses that are the result of employment, regardless of fault

Benefits include payment to doctors and hospitals, to the employee for temporary or permanent disability, and to survivors in the event of death

Family and Medical Leave Act

Allows employees to take up to 12 weeks of unpaid leave in a 12-month period for certain medical and family situations

Some employers may choose to pay employees during some types of leave, such as sick leave, but they are not required by law to do so

Family and Medical Leave Act

Valid circumstances for unpaid leave under the FMLA include: Birth and care of a newborn child, including adoption

of a child Care of an immediate family member (spouse, child,

or parent) with a serious health condition Medical leave when the employee is unable to work

because of a serious health condition

Laws Against Discrimination in Employment

A number of laws protect workers from unfair treatment in the workplace: Equal Pay Act – prohibits unequal pay for men and

women doing similar work Civil Rights Act of 1964 – prohibits discrimination in

hiring, training, and promotion on the basis of race, color, gender, religion, or national origin

Age Discrimination Act – prohibits discrimination in employment decision against people age 40 and over

Americans with Disabilities Act – prohibits discrimination on the basis of physical or mental disabilities

Decoding your Paycheck

Gross vs Net PayRequired Deductions

Income Tax (Federal, State, Local) Unemployment Social Security Medicare

Voluntary Deductions Healthcare Retirement Charitable Donations

W4

A tax form you have to fill out when you get a job

Determines # of personal allowances which affects tax withheld

Homework

Fill out a W4Minimum Wage (www.dol.gov)What is the Federal minimum wage for 2014?What about PA?What state has the highest minimum wage?UnemploymentWhat is the current unemployment rate?What was it in 2009/10?