Bài giảng Business Law (13th edition) - Chapter 51: Employment Law

Regulation of BusinessAdministrative AgenciesThe Federal Trade Commission Actand Consumer Protection LawsAntitrust: The Sherman Act11McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Regulation of BusinessThe Clayton Act,The Robinson-Patman Act, andAntitrust Exemptions and ImmunitiesEmployment LawEnvironmental Regulation11McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Employment LawPAETRHC51“Take care of those who work for you and you’ll float to greatness on their achievements.” H.S.M. Burns, quoted in Men at the Top (Elliott, 1959)Learning ObjectivesLegislation protecting employee health, safety, and well-being Legislation protecting wages, pensions, and benefitsUnions and collective bargaining Equal opportunity legislationEmployee privacy and job security51 - *Historic rule of law: employment at willEmployer may fire employee for any reasonDoctrine limited today by statutes and three common law exceptions: public policy, implied covenant of good faith & fair dealing, and employment promisesIn states recognizing exceptions, employee may sue employer for wrongful dischargeEmployment at Will51 - *Public Policy ExceptionTerminated employee claims the discharge was unlawful because it violated state public policy: employee refused to commit unlawful act, employee performed public duty, employee exercised legal rightA whistle-blower is an employee who publicly discloses dangerous, illegal, or improper behavior by the employer51 - *Breach of Good FaithIn a wrongful discharge suit based on breach of the implied covenant of good faith and fair dealing, employee argues discharge illegal because it was not made in good faithCourts have increasingly made employers liable for breaking promises to employees made prior to or during employment51 - *Workers’ compensation protects only employees (not independent contractors) for work-related injuriesWhen applicable, worker’s compensation laws allow injured employees to recover under strict liabilityEmployee’s exclusive remedy against an employer for covered injuriesWorkers’ Compensation51 - *In general, a state agency administers workers’ compensation systems to handle and adjudicate workers’ claimsFederal Occupational Safety and Health Act (OSHA) imposes duty on employers to provide employees with a workplace and jobs free from recognized hazards that may cause death or serious physical harmAgency Administration51 - *Family and Medical Leave Act (FMLA) allows covered employees to take total of 12 workweeks of leave during any 12-month period for medical or family-related reasonsEmployee Retirement Income Security Act of 1974 (ERISA) imposes fiduciary and other duties on employers that contribute voluntarily to employee retirement income through pension plansFMLA & ERISA51 - *Federal social security system imposes a flat percentage tax on employee income below a base figure and requires matching amounts by employers to support social security, disability, and medicare programsUnemployment compensation programs cover discharged workers and each state administers the system under federal guidelinesSocial Security & Unemployment51 - *FLSA regulates wages and hours by entitling covered employees to Specified minimum wage whose amount changes over time, and Time-and-a-half rate for work exceeding 40 hours per weekExemptions: executive, administrative, and professional personnelFair Labor Standards Act51 - *National Labor Relations Act grants employees a right to organize -- form, join, and assist labor organizations – and bargain collectively through their representativesEstablished the National Labor Relations Board (NLRB)Act also prohibits employers from engaging in unfair labor practices andCollective Bargaining51 - *NLRA amended in 1947 and 1959 to restrict union activity, but organized labor may still engage in collective bargaining to achieve a collective bargaining agreement and may protest unfair labor practices by employersRestrictions on Union Activity51 - *Test Your KnowledgeTrue=A, False = BEmployment at will is the rule of law in all fifty states.An employer (100 employees) may not fire a man for taking a two month leave of absence to care for his seriously-ill wife.Workers’ compensation is an employee’s exclusive remedy against an employer for covered injuries51 - *Test Your KnowledgeTrue=A, False = BThe Fair Labor Standards Act prohibits any form of child work or labor by any employer engaged in interstate commerce. OSHA may not inspect a workplace or issue citations for violations of the act without a warrant issued by a judge.An employer may terminate a whistle-blower immediately because whistle-blowers make defamatory comments to the public.51 - *Test Your KnowledgeMultiple ChoiceUnder Workers’ Compensation, employees recover only for: (a) Injuries that affect an employee’s ability to do his or her job(b) Work-related injuries that arise out of or happen in the course of employment(c) Injuries that occur during any period of employment, whether on or off the job(d) both A and B 51 - *Information for DiscussionRoughly 6,371 job-related injury deaths, 13.3 million nonfatal injuries, 60,300 disease deaths, and 1,184,000 illnesses occurred in the U.S. workplace in 1992.The total direct and indirect costs associated with these injuries and illnesses were estimated to be $155.5 billion, or nearly 3 percent of gross domestic product (GDP). 51 - *Thought QuestionsDo you think that people take advantage of government employment laws? Do you believe that Workers’ Compensation programs are effective methods to handle the substantial cost of workplace injuries?51 - *The Equal Employment Opportunity Commission is an independent federal agency authorized to enforce employment discrimination laws, investigate allegations of discrimination, and interpret statutes by issuing rules, regulations, and guidelinesSee the EEOC websiteThe EEOC51 - *Act forbids pay discrimination based on gender Employer may raise one four defenses in a lawsuit filed under the Act by showing pay disparity based on (1) seniority, (2) merit, (3) quality or quantity of production (e.g., a piecework system), or (4) any factor other than genderEqual Pay Act of 1963 (EPA)51 - *Title VII of 1964 Civil Rights ActProhibits employers engaging in industry affecting interstate commerce from discriminating on basis of race, color, religion, gender, or national originIf employer’s act violates Title VII, person aggrieved must file complaint with EEOC for investigation and allow agency to either file lawsuit or obtain resolution51 - *Title VIIDiscrimination is refusing to hire, failing to promote, firing, or otherwise reducing a person’s employment opportunities for a person in a protected classDisparate treatment or disparate impactIf private plaintiff or EEOC wins a Title VII suit, remedies include compensatory damages, reasonable attorney’s fees, and equitable relief51 - *Disparate treatment refers to a policy or practice that is discriminatory on its facePlaintiff must show s/he was treated differently solely because of race, gender, color, religion, or ethnicity (prima facie case)Disparate impact occurs if employer has rule or practice that, on its face, seems non-discriminatory or neutral, but the impact excludes too many people in protected class51 - *Discrimination Once plaintiff proves prima facie case, burden shifts to employer to show legitimate reason for discriminationEmployer may prevail in a Title VII claim if it can prove a legitimate reason for the discriminatory act or practice based on seniority, merit, or a bona fide occupational qualification51 - *Title VII Employer DefensesTitle VII and Sexual HarassmentTwo major categories of sexual harassment are prohibited by Title VII:Quid pro quo (this for that): when an aspect of a job is made contingent on an employee’s sexual activity Hostile work environment: when sexual talk and innuendo are so pervasive that a hostile work environment is created for the employee51 - *Americans with Disabilities ActProhibits employers from disqualifying a job applicant or employee if employee can, with reasonable accommodation, perform the essential functions of the jobDisability: (a) physical or mental impairment that substantially limits one or more major life activities, (b) record of such impairment, or (c) regarded as having such an impairment51 - *Other DiscriminationTitle VII and religion: employers must make reasonable accommodation for a worker’s religious beliefs unless the request would cause undue hardship for the businessAge Discrimination in Employment Act (ADEA) prohibits age-based discrimination against employees or job applicants at least 40 years old51 - *Employee Polygraph Protection Act of 1988Applies to private employers and current or prospective employeesCertain employers exemptedEmployer may not (a) require or request employees to take polygraph (lie detector) test, (b) use or inquire about polygraph results, (c) discriminate due to polygraph results or employee’s failure or refusal to take test51 - *Drug & Alcohol TestingTesting by public employers legal under Fourth Amendment if:Reasonable basis exists for suspecting employee drug or alcohol use on the jobSuch use could threaten public safety 51 - *Employer Searches & MonitoringPublic employee has reasonable expectation of privacy in areas such as his or her office, desk, or files, but a search or monitoring of those areas is constitutional if search is reasonable under circumstancesPublic or private employer who conducts an allegedly unreasonable search may be sued by an employee under common law claim of invasion of privacy51 - *Test Your KnowledgeTrue=A, False = BThe Civil Rights Act prohibits employers from discriminating on basis of race, color, religion, gender, or national origin.Two methods to prove discrimination are disparate treatment and disparate impact.Discrimination based on a BFOQ is legal.Every employer has the right to request a prospective employee to take a pre-employment polygraph.51 - *Test Your KnowledgeTrue=A, False = BUnless otherwise specified by statute, protections of the U.S. Constitution do not apply to government employees.The Americans With Disabilities Act prohibits employers from disqualifying a job applicant or employee with a disability for any reason.The two types of sexual harassment claims are quid pro quo and undue hardship.51 - *Test Your KnowledgeMultiple ChoiceIf an employer’s act violates Title VII, the aggrieved person must: (a) File a charge or complaint with the EEOC(b) Allow the EEOC to investigate the charge (c) Allow the EEOC to file a lawsuit or obtain resolution(d) All of the above(e) File a lawsuit within 6 months in federal district court51 - *Thought QuestionsEmployers may be able to monitor your work by video, audio, computer keystroke, or other methods of surveillance. Are you comfortable with this fact? Are broad allowances for employer surveillance good public policy?51 - *