Objective 3.01 Understand employment law

Employment Law Basics Employment law Division of law that governs the relationship between employers and employees Employment law stems from various forms of law including tort, criminal, contract, and labor law

Employment Law Basics 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

Employment Law Basics 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

Employment Law Basics 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

Employment Law Basics Express employment agreement A formal contract, either oral or written, that specifically states the terms and conditions of employment

Employment Law Basics 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.

NC Department of Labor Promotes the general well-being, safety, and health of NC workers by: Enforcing occupational and health standards Setting the minimum wage and maximum number of work hours per week Providing apprentice programs for the skilled trades Conducting inspections for mines, boilers, elevators, amusement rides, and quarries

Fair Labor Standards Act Also referred to as the Wage and Hour Act Federal law that sets the minimum wage, overtime pay, and age requirements for certain types of employees This act does not apply to the minimum wage or overtime pay of professional workers, executives, administrative, and outside sales employees

Fair Labor Standards Act North Carolina 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.

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

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

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

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

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

The Civil Rights Act of 1991 The purpose of this act was to strengthen civil rights law, in particular disparate impact Disparate impact Occurs when an employer creates a seeming 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

Employment-at-Will An employer or employee can terminate employment “at-will” for any reason or no reason without being liable for breach of contract Certain types of employees are not subject to employment-at-will laws including employees with contracts and unionized employees.

Union An organization of employees formed to ensure favorable work conditions, wages, work hours, benefits and grievance procedures

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

Types of Shops Agency shop Open 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

Right to Work Law State law that prohibits employees 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)

Right to Work States

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 unemployment claims

Unemployment Benefit 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

Denial of Unemployment Benefits In North Carolina, 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

Social Security Act Enacted in 1935 to provide financial assistance to eligible workers and their dependents in the form of retirement, disability, and death benefits The act established the social insurance program commonly called Social Security Federal insurance program funded by the tax contributions of employees and employers

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

Social Security Retirement Benefit Eligible persons can receive a percentage of social security by age 62, but the individual can receive full benefits at either age 65 or 67 A person can receive social security retirement benefits if the spouse dies Medicare is also considered a social security benefit

Social Security 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

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