Business Law and the
Regulation of Business
Chapter 42: Employment Law
By
Richard A. Mann
&
Barry S. Roberts
Topics Covered in this Chapter
A. Labor Law
B. Employment Discrimination Law
C. Employee Protection
Labor Law

Purpose - to provide the general
framework in which management and
labor negotiate terms of employment
Norris–La Guardia Act

Established as United States policy the
full freedom of labor to form labor
unions without employer interference
and withdrew from the Federal courts
the power to issue injunctions in
nonviolent labor disputes (any
controversy concerning terms or
conditions of employment or union
representation).
National Labor Relations Act
Right to Unionize - declares it a
Federally protected right of employees
to unionize and to bargain collectively.
 Prohibits Unfair Employer Practices the Act identifies five unfair labor
practices by an employer.
 National Labor Relations Board created to administer these rights.

Labor-Management Relations Act



Prohibits Unfair Union Practices - the Act
identifies seven unfair labor practices by a
union.
Prohibits Closed Shops - which are
agreements that mandate that employers
can hire only union members.
Allows Union Shops - an employer can
hire nonunion members, but the employee
must join the union.
Unfair Labor Practices
Unfair Employer Practices
Unfair Union Practices
• Interfering with right to unionize
• Coercing an employee to join the union
• Refusing to bargain in good faith
• Refusing to bargain in good faith
• Discriminating against union members • Causing an employer to discriminate
against a nonunion employee
• Dominating the union
• Featherbedding
• Discriminating against an employee
• Picketing an employer to require
recognition of an uncertified union
• Engaging in secondary activity
• Levying excessive or discriminatory
dues
Other Acts

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Labor-Management Reporting and
Disclosure Act - aimed at eliminating
corruption in unions.
Fair Labor Standards Act - regulates child
labor outside of agriculture.
Worker Adjustment and Retraining
Notification Act - requires an employer to
provide sixty days' advance notice of a plant
closing or mass layoff.
Family and Medical Leave Act of 1993 grants employees leave for serious health
conditions or certain other events.
Employment Discrimination Law
Equal Pay Act - prohibits an employer
from discriminating between employees
on the basis of gender by paying
unequal wages for the same work.
 Civil Rights Act of 1964 - prohibits
employment discrimination on the basis
of race, color, gender, religion, or
national origin.

Employment Discrimination Law
Equal Pay Act - prohibits an employer
from discriminating between employees
on the basis of gender by paying
unequal wages for the same work.
 Civil Rights Act of 1964 - prohibits
employment discrimination on the basis
of race, color, gender, religion, or
national origin.

Civil Rights Act of 1964
Pregnancy Discrimination Act of
1978 - extends the benefits of the Civil
Rights Act to pregnant women.
 Equal Employment Opportunity
Commission (EEOC) - enforcement
agency for the Act.
 Affirmative Action - active recruitment
of a designated group of applicants.

Charges Filed in 2000 with EEOC
Category
Number of charges
Race
Sex
28,945
25,194
National Origin
7,792
Religion
Retaliation
Age
1,939
19,753
16,008
Disability
Equal Pay
15,864
1,270
Source: EEOC National Database, Jan. 2001
Civil Rights Act of 1964


Discrimination - prohibited; includes (1)using proscribed criteria to produce
disparate treatment, (2)engaging in
nondiscriminatory conduct that perpetuates
past discrimination, and (3)adopting neutral
roles that have a disparate impact.
Reverse Discrimination - affirmative action
that directs an employer to consider an
individual's race or gender when hiring or
promoting for the purpose of remedying
under-representation of that race or gender
in typically segregated jobs.
Civil Rights Act of 1964
Defenses - three defenses are provided
by the Act (1)a bona fide seniority or
merit system, (2)a professionally
developed ability test, and (3)a bona
fide occupational qualification.
 Remedies - remedies for violation of
the Act include injunctions, affirmative
action, reinstatement, back pay, and
compensatory and punitive damages.

Civil Rights Act of 1964
Sexual Harassment - an illegal form of
sexual discrimination that includes
unwelcome sexual advances, requests
for sexual favors, and other verbal or
physical conduct of a sexual nature.
 Comparable Worth - equal pay for jobs
that are of equal value to the employer.

Executive Order

Prohibits discrimination by Federal
contractors on the basis of race, color,
gender, religion, or national origin on
any work the contractors perform during
the period of the Federal contract.
Employment Discrimination Law
Age Discrimination in Employment
Act of 1967 - prohibits discrimination on
the basis of age in hiring, firing, or
compensating.
 Disability Law - several Federal acts,
including the Americans with Disabilities
Act, provide assistance to the disabled
in obtaining rehabilitation training,
access to public facilities, and
employment.

Federal Employment
Discrimination Laws
Protected
Prohibited Conduct Defenses
Characteristics
Remedies
Equal Pay Act
Sex
Wages
Back pay
Injunction
Liquidated damages
Attorney’s fees
Title VII of the
Civil Rights
Race
Color
Sex
Religion
National origin
Terms, conditions, or Seniority
privileges of
Ability test
employment
BFOQ (except for
race)
Business necessity
(disparate
impact only)
Seniority
Merit
Quality or quantity
measures
Any factor other
than sex
Back pay
Injunction
Reinstatement
Compensatory and punitive
damages for intentional
discrimination
•
unlimited for race
•
limited for all others
Attorney’s fees
Federal Employment Discrimination
Laws (cont.)
Protected
Prohibited Conduct
Characteristics
Defenses
Remedies
Age Discrimination in Age
Employment Act
Terms, conditions, or
privileges of
employment
Seniority
BFOQ
Any other
reasonable act
Back pay
Injunction
Reinstatement
Liquidated damages for willful
violation
Attorney’s fees
Americans with
Disabilities Act
Terms, conditions, or
privileges of
employment
Undue hardship
Job-related criteria
and business
necessity
Risk to public health
and safety
Back pay
Injunction
Reinstatement
Compensatory and punitive
damages for intentional
discrimination (limited)
Attorney’s fees
Disability
Employee Termination at Will

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Under the common law, a contract of
employment for other than a definite term is
terminable at will by either party.
Statutory Limitations - have been enacted
by the Federal government and some
States.
Judicial Limitations - based on contract
law, tort law, or public policy.
Limitations Imposed by Union Contract
Employee Protection

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Occupational Safety and Health Act enacted to assure workers of a safe and
healthful work environment.
Workers' Compensation - awarded to an
employee injured in the course of employment.
Social Security - measures by which the
government provides economic assistance to
disabled or retired employees and dependents.
Unemployment Compensation - awarded to
workers who have lost their jobs and cannot
find other employment.
Employee Privacy
Drug and Alcohol Testing - some
States either prohibit such tests or
prescribe certain scientific and
procedural safeguards.
 Lie Detector Tests - Federal statute
prohibits private employers from
requiring employees or prospective
employees to take such tests.
