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Objective 3.01 Understand employment law

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1 Objective 3.01 Understand employment law
Day 38…….10/21 What rights do you have as an employee? List 4.

2 Employment Law Basics Employment law
Division of law that governs the relationship between employers and employees Stems from: tort, criminal, contract, and labor law

3 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 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

4 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

5 Express employment agreement
A formal contract, either oral or written, that specifically states the terms and conditions of employment 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.

6 NC Department of Labor Promotes the general well-being, safety, and health of NC workers by: Enforcing occupational and health standards Set minimum wage and maximum number of work hrs./wk. Providing apprentice programs for the skilled trades Conducting inspections for mines, boilers, elevators, amusement rides, and quarries.

7 Fair Labor Standards Act
a.k.a. the Wage and Hour Act Federal law sets minimum wage* overtime pay* age requirements for certain types of employees This act does not apply to professional workers, executives, administrative, and outside sales employees. Minimum Wage by State

8 NC 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 This is a provision of the Fair Labor Standards Act. Minimum Age Standards

9 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

10 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

11 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

12 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

13 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

14 Day 39…….10/22 What federal act protects you from getting paid less than $7.25/hr?

15 The Civil Rights Act of 1991 Passed to strengthen civil rights law, in particular disparate impact Disparate impact 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

16 Employment-at-Will Either an employer or employee can terminate employment for any reason or no reason without being liable for breach of contract Exceptions: Contracts Unionized employees

17 Union An organization of employees formed to ensure favorable: Work conditions Wages Work hours Benefits Grievance procedures

18 Types of Shops Closed shop Union 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

19 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

20 Right to Work Law State law 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? Employees have the freedom to chose whether or not to join the union (or pay union dues)

21 Right to Work States


23 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 claims.

24 Unemployment Benefits
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

25 U.B. Denial of: In NC, 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

26 Social Security Social Security Act 1935
Provide financial assistance to eligible workers and their dependents in the form of retirement, disability, and death benefits Est. Social Security funded by the tax contributions of employees and employers


28 S.S Disability Benefit Replaces income when a severe long lasting disability or terminal illness prevents eligible person from doing “any substantial work” Claim filed through Social Security Administration Six month required elimination (waiting) period Periodic review of status to continue benefits

29 S.S. Retirement Benefit (if eligible) Age 62 – percent of SS available
Age 65/67 - receive full benefits A person can receive social security retirement benefits if the spouse dies Medicare considered a benefit.

30 S.S. 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

31 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

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