Employment Law
Objective 3.01
Understand employment law
Employment Law Basics
• Employment law
– Division of law that governs the relationship
between employers and employees
– Employment law stems from various forms of law
including tort, criminal, contract, and labor law
Employment Law Basics
• 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
Employment Law Basics
• 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
Employment Law Basics
• 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
Employment Law Basics
• Express employment agreement
– A formal contract, either oral or written, that
specifically states the terms and conditions of
employment
Employment Law Basics
• 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
– Setting the minimum wage and maximum number
of work hours per week
– Providing apprentice programs for the skilled
trades
– Conducting inspections for mines, boilers,
elevators, amusement rides, and quarries
Fair Labor Standards Act
• Also referred to as the Wage and Hour Act
• Federal law that sets the minimum wage,
overtime pay, and age requirements for
certain types of employees
• This act does not apply to the minimum wage
or overtime pay of professional workers,
executives, administrative, and outside sales
employees
Fair Labor Standards Act
• North Carolina 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
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
The Civil Rights Act of 1991
• The purpose of this act was to strengthen civil
rights law, in particular disparate impact
• Disparate impact
– Occurs when 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
• An employer or employee can terminate
employment “at-will” for any reason or no
reason without being liable for breach of
contract
• Certain types of employees are not subject to
employment-at-will laws including employees
with contracts and unionized employees.
Union
• An organization of employees formed to
ensure favorable work conditions, wages,
work hours, benefits and grievance
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
Types of Shops
• 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 that 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 unemployment claims
Unemployment Benefit 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
Denial of Unemployment Benefits
• In North Carolina, 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 Act
• Enacted in 1935 to provide financial assistance
to eligible workers and their dependents in
the form of retirement, disability, and death
benefits
• The act established the social insurance
program commonly called Social Security
– Federal insurance program funded by the tax
contributions of employees and employers
Social Security Disability Benefit
• Replaces income when a severe long lasting
disability or terminal illness prevents eligible
person from doing “any substantial work”
• Claim is filed through the through Social
Security Administration
– Six month required elimination (waiting) period
– Periodic review of status to continue benefits
Social Security Retirement Benefit
• Eligible persons can receive a percentage of
social security by age 62, but the individual
can receive full benefits at either age 65 or 67
• A person can receive social security retirement
benefits if the spouse dies
• Medicare is also considered a social security
benefit
Social Security 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