3.01 Vocabulary 3.01 Employment Law Key Terms 1. Age Discrimination Act in Employment prohibits discrimination against applicants and employees 40 years of age or older in hiring, promotion, termination, and other employment practices. 2. Agency shop is a type of union arrangement in which employees are not required to join the union; however, they are required to pay union dues. 3. Americans with Disability Act is a federal law that prohibits discrimination based on an individual’s disability if the disabled person is able to perform the essential functions of the job. 4. Closed shop is a type of union arrangement in which applicants must join the union before being hired by a company. 5. Disparate impact occurs when an employer creates a seemingly fair employment practice that has a negative impact on members of a protected class. 6. Employee is a person who works for an employer for a wage, salary, payment or fee. The person is under the control and supervision of the employer. 7. Employer is a person or company who pays an employee a wage, salary, payment or fee in exchanges for supervising and controlling the employee’s activities. 8. Employment law is the division of law that governs the relationship between employers and employees. 9. Employment-at-will means that an employee or employer can terminate employment for any reason without being liable for breach of contract. 10. Express employment agreement is a formal contract that specifically states the terms and conditions of employment. This agreement can be oral or written. 11. Fair Labor Standards Act is a federal law that sets the minimum wage, overtime pay, and age requirements for certain types of employees. 12. Family and Medical Leave Act provides eligible employees with unpaid, jobprotected leave for certain family or medical conditions. 13. Implied employment agreement is 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. 14. Independent contractor is a person who works for an employer for a wage, salary, payment or fee. The person is not subject to the control and supervision of the employer. 15. North Carolina Department of Labor promotes the general well-being, safety, and health of NC workers. 16. North Carolina Youth Employment Provisions of the Wage and Hour Act for Nonagricultural Occupations is a state law the sets the labor standards and guidelines for youth 17 years old and younger. 17. 3.01 Vocabulary 18. Occupational Safety and Health Act is a federal law that establishes and promotes workplace safety standards for businesses. BB30 Business Law 3.01 Summer 2013 Page 1 of 2 19. Open shop is a type of union arrangement in which employees are neither required to join the union nor pay union dues. 20. Right-to-Work Law is a state law that prohibits employees from requiring employees to join a union or pay union dues as a condition of employment. 21. Social Security Act was created to provide financial assistance to eligible workers and their dependents in the form of retirement, disability, and death benefits. 22. The Civil Rights Act of 1991 was created to strengthen civil rights laws, especially the principle of disparate impact. 23. Title VII of the Civil Rights Act of 1964 prohibits employment agencies, employers, and unions from discriminating against applicants and employees on the basis of race, color, religion, national origin, or sex. 24. Unemployment Compensation is an insurance program that provides temporary income for qualified individuals who are unemployed through no fault of their own. 25. Union is a type of organization comprised of employees. The organization is formed to ensure favorable work conditions, wages, work hours, benefits, and grievance procedures. 26. Union shop is a type of union arrangement in which non-union applicants can be hired, but must join the union within a certain amount of time. 27. Workers’ compensation is government-regulated program that provides medical benefits and income to employees who are injured or acquire a disease as a result of their job. BB30 Business Law 3.01 Summer 2013 Page 2 of 2