1. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 EMPLOYMENT, WORKER PROTECTION, AND IMMIGRATION LAWS © 2010 Pearson Education, Inc., publishing as Prentice-Hall CHAPTER 31

2. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 2 Workers’ Compensation Acts Compensate workers and their families when workers are injured in connection with their jobs.

3. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 3 Workers’ Compensation Acts Worker files claim with state agency. Benefits vary by state; paid according to preset limits established by statute or regulation.

4. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 4 Workers’ Compensation Insurance States usually require employers to: –Purchase workers’ compensation insurance, or –Self-insure by making payments into a contingency fund.

5. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 5 Employment-Related Injury To recover under workers’ compensation, the worker’s injuries must have been employment-related. Stress may be compensable work- related injury.

6. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 6 Exclusive Remedy Workers’ compensation is exclusive remedy. Workers cannot sue their employers in court for damages. Except when employer intentionally injures an employee. May sue responsible third parties.

7. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 7 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.

8. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 8 Occupational Safety and Health Act (continued) 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.

9. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 9 Occupational Safety and Health Act (continued) OSHA empowered to inspect places of employment for health hazards and safety violations. If a violation is found, OSHA can issue written citation. –Requires employer to abate or correct the situation.

10. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 10 Types of OSHA Standards Specific Duty Standards –E.g., requirement for safety guard on particular type of equipment; exposure limits for hazardous chemicals. General Duty Standard Employers have duty 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.”

11. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 11 Fair Labor Standards Act (1938) Prohibits child labor. Establishes minimum wage requirements. Establishes overtime pay requirements.

12. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 12 Child Labor FLSA forbids the use of oppressive child labor. Unlawful to ship goods produced by businesses that use oppressive child labor. Department of Labor defines standards for lawful child labor. –E.g., children under 14 may deliver newspapers.

13. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 13 Minimum Wage and Overtime Pay Managerial, administrative, and professional employees exempt. Employers are required to pay covered (nonexempt) workers. –at least the federal minimum wage for their regular work hours, and –1½ times regular pay for hours in excess of 40 hours in a week.

14. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 14 Minimum Wage Set by Congress and can be changed. –In 2009, $7.25/hour. Students and apprentices may be paid less. Wages may be reduced by amount equal to reasonable cost of food and lodging provided to employees.

15. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 15 Exemptions from FLSA Executives Administrative employees Learned professionals Highly compensated employees Computer employees Outside sales representatives

16. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 16 Consolidated Omnibus Budget Reconciliation Act (COBRA) Terminated employee must be offered the opportunity to continue group health insurance. Terminated employee bears cost plus administration fees.

17. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 17 Employee Retirement Income Security Act (ERISA) Applies to employer-offered pension plans. Designed to prevent fraud and abuses in private pension plans. –Record-keeping and disclosure requirements. –Requirements for vesting. –No more than 10% of assets can be invested in securities of the sponsoring employer.

18. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 18 Family and Medical Leave Act Applies to private 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 12-month period.

19. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 19 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 Employee must be restored to same or equivalent position upon return.

20. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 20 Government Programs Unemployment Compensation –Employers pay taxes to fund. –Programs administered by states, which set eligibility requirements and duration. –Workers fired due to bad conduct; workers who quit voluntarily not eligible. Social Security –Funded by employer and employee contributions.

21. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 21 Immigration Reform and Control Act (IRCA) Administered by U.S. Immigration and Customs Enforcement. Unlawful to hire illegal immigrants. –Employers must keep records. –Employers must inspect documents. –Foreign nationals with H-1B visa may lawfully work. Civil and criminal penalties for violations.

22. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 22 Other Federal Employment Laws (1 of 2) LawDescription 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.

23. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 23 Other Federal Employment Laws (2 of 2) LawDescription Family and Medical Leave Act (FMLA) Guarantees workers up to 12 weeks of unpaid leave in a 12-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.