Business Law and the Regulation of Business Chapter 42: Employment Law By Richard A. Mann & Barry S. Roberts

Topics Covered in this Chapter A. Labor Law B. Employment Discrimination Law C. Employee Protection

Labor Law n Purpose - to provide the general framework in which management and labor negotiate terms of employment

Norris–La Guardia Act n Established as United States policy the full freedom of labor to form labor unions without employer interference and withdrew from the Federal courts the power to issue injunctions in nonviolent labor disputes (any controversy concerning terms or conditions of employment or union representation).

National Labor Relations Act n Right to Unionize - declares it a Federally protected right of employees to unionize and to bargain collectively. n Prohibits Unfair Employer Practices - the Act identifies five unfair labor practices by an employer. n National Labor Relations Board - created to administer these rights.

Labor-Management Relations Act n Prohibits Unfair Union Practices - the Act identifies seven unfair labor practices by a union. n Prohibits Closed Shops - which are agreements that mandate that employers can hire only union members. n Allows Union Shops - an employer can hire nonunion members, but the employee must join the union.

Unfair Labor Practices Unfair Employer PracticesUnfair Union Practices Interfering with right to unionizeCoercing an employee to join the union Refusing to bargain in good faithRefusing to bargain in good faith Discriminating against union membersCausing an employer to discriminate against a nonunion employee Dominating the unionFeatherbedding Discriminating against an employeePicketing an employer to require recognition of an uncertified union Engaging in secondary activity Levying excessive or discriminatory dues

Other Acts n Labor-Management Reporting and Disclosure Act - aimed at eliminating corruption in unions. n Fair Labor Standards Act - regulates child labor outside of agriculture. n Worker Adjustment and Retraining Notification Act - requires an employer to provide sixty days' advance notice of a plant closing or mass layoff. n Family and Medical Leave Act of grants employees leave for serious health conditions or certain other events.

Employment Discrimination Law n Equal Pay Act - prohibits an employer from discriminating between employees on the basis of gender by paying unequal wages for the same work. n Civil Rights Act of prohibits employment discrimination on the basis of race, color, gender, religion, or national origin.

Employment Discrimination Law n Equal Pay Act - prohibits an employer from discriminating between employees on the basis of gender by paying unequal wages for the same work. n Civil Rights Act of prohibits employment discrimination on the basis of race, color, gender, religion, or national origin.

Civil Rights Act of 1964 n Pregnancy Discrimination Act of extends the benefits of the Civil Rights Act to pregnant women. n Equal Employment Opportunity Commission (EEOC) - enforcement agency for the Act. n Affirmative Action - active recruitment of a designated group of applicants.

Charges Filed in 2000 with EEOC CategoryNumber of charges Race28,945 Sex25,194 National Origin7,792 Religion1,939 Retaliation19,753 Age16,008 Disability15,864 Equal Pay1,270 Source: EEOC National Database, Jan. 2001

Civil Rights Act of 1964 n Discrimination - prohibited; includes (1)­ using proscribed criteria to produce disparate treatment, (2)­engaging in nondiscriminatory conduct that perpetuates past discrimination, and (3)­adopting neutral roles that have a disparate impact. n Reverse Discrimination - affirmative action that directs an employer to consider an individual's race or gender when hiring or promoting for the purpose of remedying under-representation of that race or gender in typically segregated jobs.

Civil Rights Act of 1964 n Defenses - three defenses are provided by the Act (1)­a bona fide seniority or merit system, (2)­a professionally developed ability test, and (3)­a bona fide occupational qualification. n Remedies - remedies for violation of the Act include injunctions, affirmative action, reinstatement, back pay, and compensatory and punitive damages.

Civil Rights Act of 1964 n Sexual Harassment - an illegal form of sexual discrimination that includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. n Comparable Worth - equal pay for jobs that are of equal value to the employer.

Executive Order n Prohibits discrimination by Federal contractors on the basis of race, color, gender, religion, or national origin on any work the contractors perform during the period of the Federal contract.

Employment Discrimination Law n Age Discrimination in Employment Act of prohibits discrimination on the basis of age in hiring, firing, or compensating. n Disability Law - several Federal acts, including the Americans with Disabilities Act, provide assistance to the disabled in obtaining rehabilitation training, access to public facilities, and employment.

Federal Employment Discrimination Laws

Federal Employment Discrimination Laws (cont.)

Employee Termination at Will n Under the common law, a contract of employment for other than a definite term is terminable at will by either party. n Statutory Limitations - have been enacted by the Federal government and some States. n Judicial Limitations - based on contract law, tort law, or public policy. n Limitations Imposed by Union Contract

Employee Protection n Occupational Safety and Health Act - enacted to assure workers of a safe and healthful work environment. n Workers' Compensation - awarded to an employee injured in the course of employment. n Social Security - measures by which the government provides economic assistance to disabled or retired employees and dependents. n Unemployment Compensation - awarded to workers who have lost their jobs and cannot find other employment.

Employee Privacy n Drug and Alcohol Testing - some States either prohibit such tests or prescribe certain scientific and procedural safeguards. n Lie Detector Tests - Federal statute prohibits private employers from requiring employees or prospective employees to take such tests.