Employment Law Basics

Independent Contractor or Employee?

• Factors to consider include extent of control, type of work, skill required, amount of supervision, use of employer's tools/equipment, payment structure (job, hour, etc.), whether work is part of employer's regular business, and parties' belief regarding the employment relationship and its duration.

Employment-at-Will Concept

• Common law doctrine where employment can be terminated by either employer or employee at any time, without notice or reason, except for illegal reasons.
• Wrongful discharge lawsuits, claiming termination for unlawful reasons, are becoming more common.

Wrongful Discharge Suits

• Occurs when an employer violates an employment contract or statutory law regarding an employee's termination.
• This includes employment-at-will cases that fall under specific categories, including implied contracts, public policy exceptions and tort law violations.

Background Clip

• The presentation includes a historical background on the Labor Movement in the United States.

Fair Labor Standards Act (FLSA)

• The main statute regulating employee benefits in the US.
• Establishes minimum wage, mandates overtime pay, and sets maximum working hours for covered employees.
• This law chiefly affects full-time hourly employees.
• Management and salaried employees are typically exempt from these regulations.
• Part-time employees in time-sharing programs are usually exempt.

U.S. Department of Labor

• A cabinet-level federal government department.
• Responsible for wage and hour standards, unemployment insurance benefits, occupational safety, and employment-related issues.

Employee Rights Under the Fair Labor Standards Act

• (Details on Federal Minimum Wage, Overtime, Child Labor, Tip Credit, and Enforcement)

Fair Labor Wage & Hour Laws

• The presentation covers Child Labor, Minimum Wages, Overtime, and Layoffs as part of Fair Labor Wage & Hour Laws.

Child Labor

• Covered under the Fair Labor Standards Act.
• Persons under 14 are not typically employed except in specific agricultural jobs.
• Individuals aged 14-16 are permitted limited hours of work.
• Individuals aged 16-18 can work unlimited hours in non-hazardous jobs.
• State laws may require work permits.

Minimum Wage

• Governed by the Fair Labor Standards Act.
• Federal minimum wage is $7.25 per hour.
• State and local minimum wages vary.

Overtime

• Work exceeding 40 hours per week.
• Does not apply to administrative, professional, or executive positions.

Layoffs

• The WARN Act (Worker Adjustment and Retraining Notification Act) requires 60 days' advance notice for layoffs.

Family and Medical Leave Act (FMLA) of 1994

• Allows both parents up to 12 weeks of family leave per 12-month period for the birth or adoption of a child.
• Includes medical leave for the employee's spouse, child or parent.
• Military caregiver leave may extend to 26 weeks.
• Leave is typically unpaid.
• Employers must maintain employee health coverage during the leave.
• Employees are returned to their original or equivalent position upon return, retaining accumulated benefits.

Employee Health & Safety

• Includes the Occupational Safety and Health Act (OSHA) of 1970, Workers' Compensation, and the Drug-Free Workplace Act of 1988.

Occupational Safety & Health Act (OSHA)

• Establishes safety standards in the workplace.
• Requires safe working environments.
• Prevents work-related hazards.
• Preempts other state/local regulations.

Workers' Compensation Act

• Protects workers and their families from financial repercussions of work-related injuries, illnesses, and death.
• Employers contribute to a fund for compensation.
• The employee can recover even if their fault caused injury.
• The primary aim is for a swift return to work.
• Written injury notice to employer is mandatory.
• Employees may only receive partial salary while off work due to injury.

Drug-Free Workplace Act of 1988

• Requires contractors who provide goods and services to the federal government to maintain a drug-free workplace.
• Employers inform employees of the policy and potential penalties for violation.

Compensation and Benefits Regulations

• Details several Acts related to Social Security, Medicare, Employee Retirement Income Security Act, Unemployment Compensation, and Consolidated Omnibus Budget Reconciliation Act.

Social Security Act of 1935

• Foundation for unemployment compensation.
• Social Security funding employs both employee and employer payroll taxes and Medicare contributions.
• Includes retirement, disability, and survivors' benefits, along with various forms of health coverage, calculated based on the worker's lifetime earnings.

Federal Insurance Contributions Act (FICA) of 1935

• Requires employers to contribute to Social Security programs for their employees— the oldest act dealing with compensation.

Medicare

• Health care coverage program for the elderly and disabled.
• Covers social security recipients and those with end-stage renal disease.
• Covers medical conditions regardless of income or assets.
• Introduced in the 1960s, rationing of healthcare has become important due to increasing costs, requiring some individuals to obtain supplementary insurance for items not covered in the program.
• A federal program overseen by the Department of Health and Human Services.

Medicaid

• Federal program implemented by states.
• Federal government funds approximately 57% of expenditures.
• Provides need-based financial support to ensure healthcare access for the poor and indigent.
• Rationing of certain medical services may occur in some states.
• State legislatures direct allocated funds.

Social Security and Medicare

• Social Security is the largest federal spending program (23%).
• Medicare adds a further 12% to federal spending.
• Almost all government benefits for the elderly are based on inflation rates.
• Concerns exist regarding future benefits for the baby boomer generation.

Employee Retirement Income Security Act of 1974 (ERISA)

• Regulates employee benefits and pension plans.
• Employers are mandated to set aside funds for future benefits payments.
• Vesting—a certain period of service (usually 10 years)—entitles employees to retirement plan benefits.

Unemployment Compensation

• Provides temporary financial support to unemployed workers due to unforeseen reasons.
• Benefits eligibility hinges on prior work history with the employer.
• Workers terminated for just cause are not eligible.

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

• Preserves healthcare coverage for individuals following job loss or layoff.
• Covers continuation of employee health insurance up to 18 months following employment termination.
• Costly healthcare could result.

Employment Discrimination

• This segment covers various federal laws aimed at preventing discrimination in the workplace.

Equal Employment Opportunity and Employment Discrimination

• Title VII of the Civil Rights Act of 1964
• Civil Rights Act of 1991
• Equal Employment Opportunity Act (EEOA) of 1972
• Equal Pay Act of 1963
• Age Discrimination in Employment Act (ADEA) of 1967
• Rehabilitation Act of 1973
• American with Disabilities Act (ADA) of 1990

Title VII of the Civil Rights Act of 1964

• Protects against discrimination based on race, skin colour, religion, sex, and national origin.
• Applies to private employers, educational facilities, and governments with 15 or more employees.
• Covers discrimination in funding-linked organizations.
• Includes sexual harassment.
• Established the Equal Employment Opportunity Committee (EEOC).

Equal Employment Opportunity Commission (EEOC)

• Federal organization overseeing and implementing civil rights legislation.
• Investigates claims of workplace discrimination.
• Addresses discrimination based on race, gender, age, disabilities, national origin, children, gender identity, and sexual orientation.

Civil Rights Act of 1991

• Amended Title VII to permit punitive damages in cases of intentional employment discrimination.

Equal Employment Opportunity Act (EEOA) of 1972

• Provides EEOC with legal authority to sue in federal court for employment discrimination.
• Sets a reasonable cause prerequisite for discrimination lawsuits.

Equal Pay Act of 1963

• Amendment to Fair Labor Standards Act prohibits gender-based pay disparity for similar roles.

Age Discrimination in Employment Act of 1967 (ADEA)

• Protects individuals 40 years and older from age-based workplace discrimination.
• Applies to employers with 20 or more employees.
• Exceptions may be made for legitimate business reasons or circumstances not related to age.

Rehabilitation Act of 1973

• Prohibits discrimination in facilities receiving federal funding based on disabilities.

Americans with Disabilities Act (ADA) of 1990

• Prohibits disability-based discrimination by employers with 15 or more employees.
• Mandates reasonable accommodations for disabled employees.
• Exceptions may be made where accommodations cause undue hardship for the employer.

ADA - Basic Accommodations

• Includes various accommodations for individuals with disabilities, such as accessible parking, ramps, elevator access, accessible restrooms, handrails, and appropriate counters/workspaces.

Defenses

• Discusses potential legal defenses in discrimination cases, including business necessity, bona fide occupational qualification, seniority systems, and employee misconduct.

Explore key concepts in employment law, including the distinction between independent contractors and employees, the employment-at-will doctrine, and wrongful discharge lawsuits. This quiz covers essential factors that determine the nature of employment relationships and provides insights into legal protections for employees.