Chapter 31
Employment and Worker Protection
Laws
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Employment at Will
• At-will employees – employees
who do not have employment
contracts.
• Wrongful discharge – the
discharge of an employee in
violation of a statute, an
employment contract, or public
policy, or tortiously.
– The employee can recover
damages and other remedies.
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Employment at Will (continued)
Statutory
Exceptions
Contract
Exceptions
Tort Exceptions
Public Policy
Exception
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Workers’ Compensation Acts
Acts that compensate workers
and their families if workers are
injured in connection with their
jobs.
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Workers’ Compensation Acts
• Workers’ compensation
benefits
– vary by state.
– are paid according to preset
limits established by statute or
regulation.
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Workers’ Compensation
Insurance
• States usually require
employers to:
– To pay for workers’
compensation insurance, or
– To self-insure by making
payments into a contingency
fund.
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Employment Related Injury
• To recover under workers’
compensation, the worker’s
injuries must have been
employment-related.
• Stress may be a
compensable work-related
injury.
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Exclusive Remedy
• Workers’ compensation is an
exclusive remedy.
• Workers cannot sue their
employers in court for
damages.
– Exception occurs when an
employer intentionally injures
an employee.
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Occupational Safety and
Health Act (1970)
• Enacted to promote safety in the
workplace.
• Established the Occupational
Safety and Health Administration
(OSHA).
• Virtually all private employers are
within the scope of the act.
• Federal, state, and local
governments are exempt.
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Occupational Safety and
Health Act (continued)
• The act imposes record keeping
and reporting requirements on
employers.
• Employers are required to post
notices in the workplace informing
employees of their rights under this
act.
• OSHA is empowered to administer
the act and adopt rules and
regulations to interpret and
enforce it.
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Occupational Safety and
Health Act (continued)
• OSHA is empowered to inspect
places of employment for health
hazards and safety violations.
• If a violation is found, OSHA can
issue a written citation.
– Requires the employer to abate
or correct the situation.
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Types of OSHA Standards
Specific Duty Standard
• Addresses a safety problem of a
specific duty nature.
– e.g., requirement for a safety guard on
a particular type of equipment
General Duty Standard
• Duty that an employer has to
provide a work environment “free
from recognized hazards that are
causing or are likely to cause death
or serious physical harm to his
employees.”
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Fair Labor Standards Act (FLSA)
• Federal act enacted in 1938 to
protect workers.
– Prohibits child labor
– Establishes minimum wage
requirements
– Establishes overtime pay
requirements
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Child Labor
• The FLSA forbids the use of
oppressive child labor.
• It is unlawful to ship goods
produced by businesses that use
oppressive child labor.
• The Department of Labor defines
the standards for lawful child
labor.
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Minimum Wage and Overtime
Pay
• Managerial, administrative, and
professional employees are
exempt from the FLSA’s wage and
hour provisions.
• Employers are required to pay
covered (non-exempt) workers at
least the minimum wage for their
regular work hours.
• Overtime pay is also mandated.
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Minimum Wage
• Set by Congress and can be
changed.
• Employers are permitted to
pay less than minimum wage
to students and apprentices.
• An employer may reduce
minimum wages by an
amount equal to the
reasonable cost of food and
lodging provided to
employees.
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Overtime Pay
• An employer cannot require
nonexempt employees to work
more than 40 hours per week
unless they are paid one-and-a
half times their regular pay for
each hour worked in excess of 40
hours.
• Each week is treated separately.
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Family and Medical Leave Act
• Applies to employers with 50
or more workers, federal,
state, and local government
workers
• Employee must have worked
for employer for at least one
year
• Employee must have
performed 1250 hours of work
in previous twelve-month
period
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Family and Medical Leave Act
(continued)
• Provides up to 12 weeks of
unpaid leave for:
– Birth of child
– Placement of child for
adoption or foster care
– Serious health condition
– Care for spouse, child, or
parent with serious health
condition
• Must use all available sick
time and vacation time
before it is applied
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Family and Medical Leave Act
(continued)
• Employee mist be restored to
either same or equivalent
position
• Must be given equivalent
pay and benefits
• No accrual of seniority
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Consolidated Omnibus Budget
Reconciliation Act (COBRA)
• Separated employee must
be offered the opportunity to
continue group health
program
• Separated employee bears
cost plus administration fees
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Employee Retirement Income
Security Act (ERISA)
• If employer offers a pension
plan ERISA applies.
– Establishes record-keeping and
disclosure requirements
– Sets requirements for vesting
– Establishes percentage of
assets that can be invested in
employer’s securities
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Immigration Reform and Control
Act (IRCA)
• Administered by U.S.
Immigration and
Naturalization Service
• Makes it unlawful to hire
illegal immigrants.
– Employers must keep records.
– Employers must file I-9.
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Other Federal Employment
Laws (1 of 2)
Law
Description
Employee Retirement Income
Security Act (ERISA)
Prevents fraud and other abuses associated with private
pension plans.
Consolidated Omnibus Budget
Reconciliation Act (COBRA)
Permits employees and their beneficiaries to continue their
group health insurance after an employee’s employment has
ended.
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Other Federal Employment Laws
(2 of 2)
Law
Description
Family and Medical Leave Act
(FMLA)
Guarantees workers up to twelve weeks of unpaid leave in a
twelve-month period to attend to family and medical
emergencies
Immigration Reform and Control
Act (IRCA)
Makes it unlawful for employers to hire illegal immigrants.
Employers are required to complete INS Form I-9 attesting
legal U.S. citizenship or legal alien status of each employee.
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