EMPLOYMENT LAW

Learning GoalTo be able to identify situations

that fall outside the doctrine of Employment-at-Will.

Employment-at-Will

Employer is allowed to discharge an employee at any time, for any or no reason, with or without notice

General rule in most statesEmployees not free to leave would be considered slaves

Doesn’t apply in certain situations

Unionized Employees

Union Organization of employees formed to promote the welfare of its members

Includes a Collective Bargaining AgreementA contract agreed on by the Employer & the Labor Union

Collective Bargaining Agreements

Issues Concerning: Working conditions Wages Benefits Job security Layoffs Firing Policies Grievance Procedures

Grievance Procedures: Establishes a series of steps that

an employee must follow to appeal the decision of an employer who may have violated the collective bargaining agreement.

Collective Bargaining Agreements

Layoffs & Plant Closings

Due to Economic conditions, Union’s cannot guarantee an employee a job for life

Severance pay can be included in CBA Set amount of money paid during

unemployement Calculated by:

PositionSalaryVariety of other factors

Layoffs & Plant Closings

Federal Government Legislation: WARN: Worker Adjustment &

Retraining Notification Act

Requires 60 day advance noticeCompanies with more than 100 workers

Ex: O’Sullivan’s in Lamar, MO

Illegal Discrimination

Civil Rights Act of 1964 Race Color Creed National Origin Gender Age

EMPLOYERS

Rights & Duties include: Regular pay Safe work environment Appropriate job training Opportunities for raises &

promotions Safe tools Able to make reasonable

complaints

EMPLOYEES

Rights & Duties Experience, Education, & Skills Reasonable amount of work in a

reasonable amount of time Loyal Honest Dependable Abide by the rules

Exceptions to Employment-at-Will

Wrongful Discharge Provides employees with grounds for legal

action

5 Standards for considering unjust terminationPromissory estoppelImplied contractPublic policy tortIntentional infliction of emotional distressImplied covenant

1. Promissory Estoppel

4 Elements:1. Employer makes a promise that the

employee is expected to rely upon2. Employee relies upon the promise &

does or doesn’t do something3. Employee ordinarily would not have

acted or refrained from acting had it not been for the promise

4. Employee is harmed by the employer’s failure to honor the promise

2. Implied Contract

When an employer has said, written, or done something to lead the employee to reasonably believe that he or she is not an at-will employee.

3. Public Policy Tort

No one should be allowed to do anything that tends to hurt the public at large.

4. Intentional Infliction of Emotional Distress If the discharge of an employee caused severe mental and emotional trauma, the employee could bring a lawsuit.

Must be extremely outrageous to qualify

5. Implied Covenant

Based on an implied promise that the employer & employee will be fair & honest with one another

Learning GoalTo be able to identify situations

that fall outside the doctrine of Employment-at-Will.

EMPLOYMENT LEGISLATION

Learning Goal

To be able to identify Employment Legislation,

including Child Labor Laws

Wagner Act

1st law establishing guidelines for determining which employment concerns had to be included in the Collective Bargaining Agreement.

wages, hours, & conditions

Taft-Hartley Act

Created to equalize the power of labor and management.

Unions must provide a 60-day notice before a strike

President may stop a strike!

Taft-Hartley Act Closed shop – Must be a Union

member before being hiredIllegal

Union shop –Must join the Union within 30 days after being hiredAllowed in some states

Featherbedding – Union assigning more employees to a job than neededIllegal

Landrum-Griffin Act

Created to stop corruption in Unions

Must register constitutions & bylaws

Submit yearly financial reports “Bill of Rights”

Employment of Minors

In the industrial revolution, children were often exploited by employers. Dangerous work Low wages

Thus Child Labor Laws were established

Child Labor Laws States:

Limited hours worked Cannot be around dangerous

machinery Allow for work permits

Federal: No trade allowed for any goods

produced with “oppressive child labor”

Learning Goal

To be able to identify Employment Legislation,

including Child Labor Laws

EMPLOYMENT PROTECTION

3 Areas

Health & SafetyFair wages & benefitsPrivacy rights

Health & Safety

OSHA (Occupational Safety & Health Administration) Federal agency that sets safety & health standards for U.S. companies

All businesses engaged in interstate commerce must meet OSHA standards

OSHA Inspections

Done randomlyWhen Death, Disaster, or Complaint filed Cannot be fired for a complaint!

Fair Wages & BenefitsWage & Hour Law

Requires certain employers to pay their employees a legal minimum hourly wage rate, plus time-and-a-half for work in excess of 40 hours per week.

Fair Wages & BenefitsEqual Pay Rule (Act)

States that employers must pay women the same rate of pay as men holding the same type of job

Fair Wages & BenefitsPension Plan

Program established by an employer or a union that is designed to provide income to employees after they retire

Fair Wages & BenefitsFamily & Medical Leave Act Employees entitled to 12 weeks of leave:Birth or adoption of a childSpouse, child, or parent with serious medical conditions

Must work for 1 year

Fair Wages & Benefits Social Security

Gov’t program that provides continuing but limited income to workers & their dependentsFunded by employee & employer

Receive when:Earnings stop or reduceRetirementDeathDisabled

Fair Wages & BenefitsUnemployment Compensation System of gov’t payments to people who are out of work & looking for a job

Fair Wages & BenefitsWorker’s Compensation

Insurance program that provides income for workers who are injured or who develop a disability or disease as a result of their job

Privacy Rights

Drug-Free Workplace Act Regulates employee drug testing

Privacy Rights

Employee Polygraph Protection Act Employers cannot use lie detector

tests for screening applicants or for random testing of employees

Exceptions:Drug firmsPrivate investigation companies

EMPLOYMENT DISCRIMATION

Learning GoalTo be able to recognize the difference between legal & illegal discrimination.

Discrimination The unequal treatment of

individuals based on sex, age, race, nationality, or religion

Regulated by: Civil Rights Act of 1964 & 1991 Age Discrimination Act Americans with Disabilities Act Pregnancy Discrimination Act

Disparate Treatment Intentional discrimination

against an individual or a group because of sex, race, color, national origin, or religion.

“We do not hire female engineers” “We do not hire male nurses”

BFOQBona Fide Occupational Qualification Example: women to model women’s swimsuits

Can NEVER be raised to justify a discrimination based on race

Disparate Impact Unintentional discrimination

due to policy of employer that on the surface seems neutral, but which has an unequal & unfair impact on members of a protected group Must weigh 150 lbs Must be 6 foot tall

Business necessity If the employer can show that a

qualification is required to perform the job, then it may be permitted despite its disparate impact on a protected group

Sexual Harrassment Quid pro quo harassment

Occurs when 1 worker demands sexual favors from another worker in exchange for some employment-related decision (raise or promotion)

Hostile working environment When a pattern of severe & pervasive

sexually demeaning behavior has altered the work place, making it distressing, humiliating, or hostile place

Jokes, photos, cartoons, posters, gestures, etc.

Age Discrimination in Employment Act

Forbids discrimination against any person aged 40 or older

Hiring & firing Promotions Retirement & Pensions

Americans with Disabilities Act

Forbids discrimination on the basis of a disability

Disability Physical or mental impairment that

substantially limits one or more of the major life activities

Exceptions when causing “undue hardship”