Bài giảng Business Law - Chapter 51: Employment Law

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin11Administrative LawThe Federal Trade Commission Act and Consumer Protection LawsAntitrust: The Sherman ActThe Clayton Act, The Robinson-Patman Act, and Antitrust Exemptions and ImmunitiesEmployment LawEnvironmental RegulationRegulation of BusinessPARTEmployment LawPAETRHC51Take care of those who work for you and you’ll float to greatness on their achievements.H.S.M. Burns, quoted inMen at the Top (Elliott, 1959)Learning ObjectivesIdentify and describe legislation protecting worker safety, health, and well-being; regulating wages and hours, pensions and benefits, and income security; and that governs unionized workforcesExplain employment-at-will doctrine and its major exceptionsWorkers’ compensation protects only employees (not independent contractors)Some state laws exempt certain categories of employees or employersRecover only for work-related injuries Workers’ compensation is an employee’s exclusive remedy against an employer for covered injuriesUnless employer acted intentionallyWorkers’ CompensationIn general, a state agency administers workers’ compensation systems to handle and adjudicate workers’ claimsStates fund workers’ compensation by requiring covered employers to purchase private insurance, make payments into a state fund, or self-insure with a contingency fundAgency AdministrationImposes a duty on employers to provide employees with a workplace and jobs free from recognized hazards that may cause death or serious physical harmOccupational Safety and Health Administration (OSHA) issues and enforces supporting regulationsOSHA is authorized to inspect a workplace and issue citations for violations of the act and regulationsOccupational Safety and Health ActCovers those employed for > 12 months (>1,250 hours) by an employer employing 50 or more employeesCovered employees may take a total of 12 workweeks of leave during any 12-month period for one of several reasons: Birth of a childAdoption of a childNeed to care for a spouse, child, or parent with a serious health conditionEmployee’s own serious health conditionFamily & Medical Leave ActFederal social security system is funded by the Federal Insurance Contributions Act (FICA), which imposes a flat percentage tax on employee income below a base figure and requires matching amounts by employers to support programs:Social securityDisabilityMedicareSocial SecurityCovering discharged workers, each state administers a system of unemployment compensation under federal guidelinesFunded by federal and state unemployment compensation taxes paid by employersWorkers who voluntarily leave without good cause, are fired for misconduct, fail to actively seek new work, or refuse other work generally are ineligible for benefitsUnemployment CompensationEmployers often contribute voluntarily to employee retirement income through pension plansEmployee Retirement Income Security Act of 1974 (ERISA) imposes:Guaranteed employee participationRecord-keeping, reporting, and disclosure requirementsPension fund managers have fiduciary dutiesERISAFLSA 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 ActNLRA gave employees the right to organize by enabling them to form, join, and assist labor organizations and to bargain collectively through their own representativesThe Act also prohibited employers from engaging in certain unfair labor practices and established the National Labor Relations Board (NLRB)Union ActivityThe 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 EEOCAct forbids pay discrimination based on gender: employee may not be paid a lesser rate than employees of opposite sex for equal workEqual work defined as substantially equal in terms of effort, skill, responsibility, and working conditionsEmployer defenses: pay disparity based on seniority, merit, quality or quantity of production (e.g., a piecework system), or any factor other than genderEqual Pay Act of 1963 (EPA)Title VII of 1964 Civil Rights ActProhibits employers from discriminating on basis of race, color, religion, gender, or national originProhibits sexual harassment and discrimination because of pregnancyCovers all employers employing 15 or more employees and engaging in an industry affecting interstate commerceTitle VII ProcedureIf an employer’s act violates Title VII, the aggrieved person must file a charge or complaint with EEOC for investigation and allow agency to either file a lawsuit or obtain resolutionSee EEOC website regarding procedureIf, after six months, EEOC fails to file suit or resolve the claim, plaintiff may obtain a right to sue letter and file a civil lawsuitTitle VII RemediesIf private plaintiff or EEOC wins a Title VII suit, several remedies exist: compensatory damages, reasonable attorney’s fees, equitable relief, and punitive damagesIf discrimination was intentional, an employee may obtain back pay for lost wages and compensatory damages for emotional distress, sickness, loss of reputation, or denial of creditDefinition of DiscriminationDiscrimination is refusing to hire, failing to promote, firing, or otherwise reducing a person’s employment opportunities for a person in a protected classTwo methods to prove discrimination:Disparate treatmentDisparate impactPlaintiff must show s/he was treated differently due to race, gender, color, religion, or ethnicity (prima facie case)Example: Gaskell v. University of KentuckyOnce plaintiff proves prima facie case, the burden shifts to employer to show a legitimate and non-discriminatory reason for discriminationPlaintiff must then prove that employer’s reason is mere pretext to win the caseProving Disparate TreatmentDisparate impact occurs if an employer has a rule or practice that, on its face, seems non-discriminatory or neutral, but the impact excludes too many people in a protected classExample: height or weight limits, taking a written testIf plaintiff proves disparate impact, burden is on employer to show job-related reasonProving Disparate ImpactAn employer may prevail in a Title VII claim if it can prove a legitimate reason for the discriminatory act or practice based on:Bona fide occupational qualification (BFOQ)SeniorityMeritTitle VII Employer DefensesTitle VII and ReligionEmployers must make reasonable accommodation for a worker’s religious beliefs unless the request would cause undue hardship for the businessThe term religion is broadly definedUndue hardship exists if accommodation imposes more than a minimal burden on an employerTitle 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 employeeAge Discrimination in Employment ActProhibits age-based discrimination against employees or job applicants at least 40 years oldCovers organizations that engage in an industry affecting interstate commerce, and employ at least 20 persons Remedial procedures, defenses, and remedies are similar to Title VII claimsAmericans with Disabilities ActProhibits employers from disqualifying a job applicant or employee if employee can, with reasonable accommodation, perform the essential functions of the jobDisability under the ADA is:Physical or mental impairment that substantially limits one or more of an individual’s major life activitiesA record of such an impairment, or One’s being regarded as having such an impairmentPrivacyEmployer interests in surveillance of the workplace may conflict with employee privacy interestsUnless otherwise specified by statute, U.S. Constitution does not apply to private employmentFederal privacy laws typically apply only to federal employees and state law covers private sector employeesEmployee Polygraph Protection Act of 1988Applies to private employers and current or prospective employeesEnforced by Department of Labor (DOL), an employer may not:Require or request employees to take a polygraph (lie detector) testUse or inquire about polygraph resultsDiscriminate based on polygraph results or an employee’s failure or refusal to take testDrug & Alcohol TestingTesting by public employers is legal under search and seizure provisions of Fourth Amendment if:Reasonable basis for suspecting employee drug or alcohol use on the job existsIf such use could threaten public interest or public safetyEmployer SearchesA public employee has a reasonable expectation of privacy in areas such as an office, desk, or files, but a search of those areas is constitutional if search is reasonable under circumstancesEmployers may monitor the workplace by closed-circuit television, video monitoring, telephone monitoring, computer workstation monitoring (keystroke counting), and using metal detectors Employment at Will RuleTraditional employment-at-will rule first appeared around 1870: either party can terminate an employment contract of indefinite duration for good cause or no causeDoctrine limited today by statutes and three common law exceptions:Public policyImplied covenant of good faith & fair dealingEmployment promisesPublic Policy ExceptionTerminated employee may claim discharge was unlawful (wrongful) because it violated state public policy in one of three ways:Employee refused to commit unlawful actEmployee performed public obligation such as military duty or whistle-blowingA whistle-blower is an employee who publicly discloses dangerous, illegal, or improper behavior by the employerEmployee exercised legal right or privilegeBreach of Good FaithIn a wrongful discharge suit based on breach of the implied covenant of good faith and fair dealing, employee argues discharge was unlawful because it was not made in good faith or did not amount to fair dealingThought 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?