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Chapter 32

Employment

Law


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© 2013 The McGraw-Hill Com anies Inc. All ri hts reserved.

Worker Safety and Health

• There are numerous federal and state laws thatserve to protect employees from accidents andsicknesses that are jobrelated!

• State "evel• Workers# compensation statutes$ which pertain to how aworker may recover dama%es for workrelated injuries andillnesses!

• &ederal "evel

• There are several statutes that re'uire employers to maintaina safe and healthful work environment!

• The most important of these federal statutes is the(ccupational Safety and Health )ct of *+,-!

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Workers# Compensation

• Workers# compensation ) type of insurance thatprovides that employees may recover dama%es forworkrelated injuries and illnesses without havin% toprove ne%li%ence on the part of the employer!

• Since workers# compensation is almost mandatory andprovides employees with nearly automatic recovery$ it isconsidered to be the eclusive remedy!• Exclusive remedy: )n employee who sustains a workrelated

injury or illness can recover dama%es only throu%h workers#compensation and may not file a lawsuit a%ainst his or her

employer!• 4mployees may sue their employers if it was the

employer#s intentional or %rossly ne%li%ent conduct thatcaused the injury or illness!

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4ssentials of 7usiness "aw Chapter 3-/

4ample Workers# Compensation

• Facts:• Carlos was an employee of 8ar%at 9ndustries!• (ne day$ while he was workin% on a machine$ he

sustained a serious injury and subse'uently lost the

use of his ri%ht hand!• The employer denied responsibility and refused to paythe full compensation for the injury!

• Carlos contended that he was entitled to the fullcompensation since his injuries were sustained at

work!In this scenario, Carlos has made a justified claimand should be entitled to recover the completedamages under workers’ compensation statutes forwork-related injuries.

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(ccupational Safetyand Health )ct

• (ccupational Safety and Health )ct of *+,- This law was passed to promote safety andhealth in the workplace!

• The law created a federal a%ency$ the(ccupational Safety and Health )dministration:(SH);$ to administer its many provisions!

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(SH)

• (SH)•


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>iscrimination in 4mployment

• There are many federal$ state$ and local statutes thatprohibit employers from discriminatin% in employment!

• >iscrimination a%ainst employees who are members ofa protected class is ille%al throu%hout the employment

process$ includin% outreach$ hirin%$ job classification$salary$ promotions$ benefits$ discipline$ layoffs$termination$ and so on!

• )ffirmative action plans


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Civil


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4'ual ?ay )ct of *+13

• The 4'ual ?ay )ct of *+13• ?rohibits any employer from en%a%in% in wa%e

discrimination based upon se!

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)%e >iscriminationin 4mployment )ct

• The )%e >iscrimination in 4mployment )ct of*+1, is a federal statute desi%ned to protectindividuals from ille%al discrimination in

employment on the basis of a%e!• The protected class created pursuant to this

statute is persons over the a%e of /-!

•Several states have laws makin% it ille%al todiscriminate on the basis of a%e a%ainst personswho are over the a%e of 2*!

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4ample The )%e >iscrimination

in 4mployment )ct

• Facts:• )lec was a 00yearold mana%er at a computer

distribution company!• To keep current with chan%in% technolo%y$ his

mana%ement instructed him to update his technolo%y skillset in order to retain his position!• )lthou%h )lec participatedAand performed admirablyAin

an etensive company trainin% pro%ram$ )lec wasterminated and replaced by a 30yearold applicant withlimited relevant eperience$ at a si%nificantly lower salary!

• "lec ma# file a lawsuit against the emplo#er withthe $ual mplo#ment %pportunit# Commission onthe basis of age discrimination.

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12/24© 2013 The McGraw-Hill Com anies Inc. All ri hts reserved.

The ?re%nancy >iscrimination )ct

• The ?re%nancy >iscrimination )ct of *+,6 )federal statute desi%ned to protect individualsfrom ille%al discrimination in employment on thebasis of pre%nancy!

• Bnder the )ct$ employers must treat womenaffected by pre%nancy in the same manner asany other employee who suffers from atemporary disability!

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4ample The ?re%nancy>iscrimination )ct

• Facts: • 8ary )nn worked on an assembly line for a manufacturer of plastic

containers in a position that re'uired that she stand on her feet forlon% hours!

• She performed her duties well and continually received outstandin%

evaluations!• She informed the company that she was pre%nant and re'uested a

temporary transfer to an available clerical position for which she was'ualified. however$ the company refused her re'uest!

• When she entered the latter sta%es of her pre%nancy$ she was nolon%er able to perform her assembly line duties and was terminated!

• She filed a complaint a%ainst her company with the 44(Cfor wron%ful termination pursuant to the ?>)! The 44(Cwill likely impose penalties for discriminatin% a%ainstpre%nancy!

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)mericans with >isabilities )ct

• )mericans with >isabilities )ct :)>); of *++- ) federalstatute desi%ned to protect individuals from ille%aldiscrimination in employment on the basis of disability!• The )>) defines disability as$ ) physical or mental impairment

that substantially limits one or more of the major activities of life!D

• ?ersons who are considered disabled and protectedunder )>) include anyone who• 9s si%ht or hearin%impaired or uses a wheelchair!• Suffers from cancer$ diabetes$ alcoholism$ )9>S$ epilepsy$ manic

depression$ or schiEophrenia!

• The )>) re'uires that employers make reasonableaccommodation for an otherwise 'ualified employeewith a disability$ unless to do so would cause unduehardship!

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Civil



Seual Harassment

• Sexual harassment: Bnwelcome seual attention$ whether verbalor physical$ that affects an employee#s job condition or creates ahostile workin% environment!• 9t is a form of discrimination on the basis of se and is ille%al under

federal and state law!

• Samese harassment is also ille%al!• !amples:• Bnwelcome seual advances!

• Coercion!

• &avoritism!

• 9ndirect harassment!

• ?hysical conduct$ such as unseemly %estures or touchin%!• Fisual harassment!• Ferbal harassment!

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Seual Harassment :cont!;

• 9f a case of seual harassment winds up in court$ theemployer will attempt to defend a%ainst this lawsuit bydemonstratin% that there was an effective seualharassment pro%ram in force! )n effective seualharassment pro%ram is one that• 9s in writin% and communicated to the employees!• >efines seual harassment and declares a no

toleranceD policy!• 4stablishes a complaint procedure!

• Trains$ educates$ and sensitiEes employees!• ?rovides for prompt and thorou%h investi%ation of

complaints!• 9ncludes corrective action$ includin% discipline!

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"abor Bnions

• Since the *+3-s$ labor unions have played avital role in both the B!S! economy and itspolitics!

• 9t is important to understand the ri%hts under thelaw that pertain to employees$ unions$ andemployers!

• These ri%hts are protected by the @ational "abor



urin% the ne%otiation process$ the union has the ri%ht toensure that the employer bar%ains in %ood faith$ makin%an honest effort to reach an a%reement!• 9f an a%reement is not reached$ the union has the ri%ht to call a

strike!

• )t times$ employees en%a%e in a wildcat strike :a strikewithout the union#s consent; or a slowdown :reportin% towork but intentionally decreasin% their productivity;!

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urin% the ne%otiation process$ the employerhas the ri%ht to ensure that the union bar%ains in

%ood faith!• 9f an a%reement is not reached$ the employer has theri%ht to en%a%e in a lockout!

• "ockout 4mployees are not allowed to return to work!

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&amily and 8edical "eave )ct

• The &amily and 8edical "eave )ct :&8"); is afederal statute that provides elli%ible employees withthe ri%ht to take up to *2 weeks of unpaid leave for

• ?ersonal medical reasons$ or • To care for a child$ spouse$ or parent!

• The &8") applies to all employers who employee0- or more employees

• To be eli%ible$ an employee must have worked forhis or her current employer for at least *$20- hoursin the previous year!

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Bnemployment 7enefits

• Bnemployment insurance provides financialstability$ in the form of unemploymentcompensation$ to eli%ible employees who lose

their jobs!• ) dual pro%ram of state and federal statutes

create a system whereby employers arere'uired to pay federal and state unemployment

insurance taes!

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Bnemployment 7enefits :cont!;

• Generally$ in order for employees to be eli%ibleto receive unemployment compensation$ theymust have

• "ost their job throu%h no fault of their own$ and• They must meet the minimum state re'uirements for

wa%es or time worked durin% an established period oftime!

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Liuzzo08_CH32_PPT

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