Employment LawObjective 3.01

Understand employment law

Day 38…….10/21

What rights do you have as an employee? List 4.

Employment Law Basics

1. Employment law Division of law that governs the relationship between

employers and employees Stems from: tort, criminal, contract, and labor law

2. Employer Person or company who pays a person for a wage,

salary, payment or fee in exchange for supervising and controlling the employee’s activities

3. Employee Person who works for an employer for a wage, salary,

payment or fee, guided by an express or implied agreement

The employee is under the control and supervision of the employer

4. Independent contractor Person who works for an employer for a wage, salary,

payment or fee, guided by an express or implied agreement

Person is not subject to the control or supervision of an employer

5. Express employment agreement A formal contract, either oral or written, that

specifically states the terms and conditions of employment

6. Implied employment agreement An employment contract in which the terms and

conditions may be inferred through the actions, comments, promises, and employment practices of either the employer or employee.

NC Department of Labor

Promotes the general well-being, safety, and health of NC workers by:

Enforcing occupational and health standards Set minimum wage and maximum number of work

hrs./wk. Providing apprentice programs for the skilled trades Conducting inspections for mines, boilers, elevators,

amusement rides, and quarries.

Fair Labor Standards Act

a.k.a. the Wage and Hour Act

Federal law sets minimum wage* overtime pay* age requirements for certain types of employees

This act does not apply to professional workers, executives, administrative, and

outside sales employees.

Minimum Wage by State

NC Youth Employment Provisions of the Wage and Hour Act for Nonagricultural Occupations

Law that establishes labor standards and labor guidelines for youth 17 years old and younger

In general, children of any age are permitted to work for business owned by parents

Minimum Age Standards

Occupational Safety & Health Act

Federal act that establishes and promotes workplace safety standards for businesses

Employers should undertake specific precautions to ensure that the workplace is free of hazards that would lead to harm, permanent injury or death

Violators may be fined up to $7,000 per day

Americans with Disability Act

Federal act that prohibits discrimination based on a person’s disability if the person with the disability is able to perform the essential functions of the job requirements

Age Discrimination Act in Employment

This act prohibits discrimination against applicants and employees 40 years of age or older throughout the employment process

This act only apply to businesses employing 20 or more employees

Family and Medical Leave Act

This act provides eligible employees with unpaid, job-protected leave for certain family or medical conditions, such as: The birth or adoption of a child The employee is diagnosed with a serious health

condition The employee needs to care for a close relative with a

serious health condition

Title VII of the Civil Rights Act of 1964

This act prohibits employment agencies, employers, and unions from discrimination against applicants and employees on the basis of race, color, religion, national origin or sex

Discrimination is prohibited throughout the employment process including hiring, compensation, promotion, training, and termination

Day 39…….10/22

What federal act protects you from getting paid less than $7.25/hr?

The Civil Rights Act of 1991

Passed to strengthen civil rights law, in particular disparate impact

Disparate impact An employer creates a seemingly fair employment

practice that has a negative impact on members of a protected class

Under this act, employers must prove that their practices are based on job qualifications

Employment-at-Will

Either an employer or employee can terminate employment for any reason or no reason without being liable for breach of contract

Exceptions: Contracts Unionized employees

Union

An organization of employees formed to ensure favorable:

Work conditionsWagesWork hoursBenefitsGrievance procedures

Types of Shops

Closed shop Employees must join the union before being hired

Union shop Non-union employees can by hired, but must join

union within a certain amount of time

Agency shop Employees are not required to join the union, yet they

still must pay union dues

Open shop Employees are not required to join the union or pay

union dues

Right to Work Law

State law prohibits employers from requiring employees to join a union or pay union dues as a condition of employment.

Airline and railway employees are not protected by this law

What are the right to work states?

Right to Work States

Unemployment Compensation

Insurance program that provides temporary income for qualified individuals who are unemployed through no fault of their own

Eligibility requirements for collecting unemployment compensation varies by state

The North Carolina Division of Employment Security handles claims.

Unemployment Benefits

Requirements:In North Carolina, any individual wanting to collect or continue to collect unemployment compensation must:

Register for work through the Employment Security Commission

File a claim for each week that benefits are needed Actively seek employment during any week

unemployment benefits are received

U.B.

Denial of:In NC, an individual may be denied

unemployment compensation if he/she: Quits a job Gets fired from a job Refuses a referral job Turns down a job offer Refuses to Approved Commission Training Fails to complete Approved Commission Training

Social Security

Social Security Act 1935Provide financial assistance to eligible workers and their dependents in the form of retirement, disability, and death benefits

Est. Social Security funded by the tax contributions of employees and

employers

S.S

Disability Benefit

Replaces income when a severe long lasting disability or terminal illness prevents eligible person from doing “any substantial work”

Claim filed through Social Security Administration Six month required elimination (waiting) period Periodic review of status to continue benefits

S.S.

Retirement Benefit (if eligible)

Age 62 – percent of SS availableAge 65/67 - receive full benefits

A person can receive social security retirement benefits if the spouse dies

Medicare considered a benefit.

S.S.

Death Benefit

Lump sum payment given to the surviving spouse upon the death of a person who worked long enough to qualify for Social Security benefits

The average death benefit is $255

Worker’s Compensation

A government-regulated program that provides medical benefits and income to employees who are injured or who develop a disability or disease as a result of their job

Indemnifies (pays) employee for their loss of income

Insurance is paid for by employer