Labor Chapter 9

Unemployment Frictional Unemployment: Unemployment that always exists – when people are looking for a job, interviewing, or trying to return to the workforce Seasonal Unemployment: Unemployment that occurs because of the weather (season) Structural Unemployment: When the skills of a worker no longer match the job requirements Cyclical Unemployment: Unemployment caused by the business cycle of the economy

Labor Labor Unions: Organizations that protect the workers, more common in the North and Northeast – (much less in the South) Collective Bargaining: An agreement between employer and employees in which the rights of the employee are usually represented by Unions. Can include wages, working conditions, and benefits Right to Work Laws: 1947 Taft-Hartley Act prohibited the need to join a union – currently in 24 states

Right to Work Laws: Proponents say – workers should have the right to determine if they want to join a union and pay union dues Right to Work Laws: Opponents say – all workers benefit from collective bargaining and union protection. Some should be “free riders”

Blue collar vs. white collar – Blue collar – working class, manual labor, usually hourly paid, usually does not need higher education White collar – management, office worker, usually salaried

People in unions generally receive higher wages Does more money/benefits (wages) = few workers?

Minimum Wage Federal minimum wage is $7.25 (2.13 if tipped), but if tips don’t make minimum wage then the employers must make up the difference In 2015, seven states voted to gradually increase minimum wage to $15 an hour 29 states, or 60% of the workforce have higher wages than $7.25 Republicans have continually blocked minimum wage legislation

Minimum Wage The Georgia state minimum wage is $5.15. Employees covered under the federal Fair Labor Standards Act are subject to the federal minimum wage of $7.25 Those not covered under the FLSA may be paid the state minimum wage of $5.15.

Overtime Pay Work in excess of 40 hours per weeks should be paid at time-and-a-half Professionals are exempt from overtime if they earn over $47,476 Many firms simply increased worker pay to avoid overtime

Paid Sick Leave 36% of private sector workers don’t get paid sick leave

Paid Family Leave Since 1993, a federal law guaranteed workers unpaid leave for up to 12 weeks for birth, serious health issues, or adoption Three states (NJ, CA, RI) offer paid family leave – funded by employee-paid payroll taxes Republicans blocked a national paid-leave program

Even though there are laws against discrimination, women get 85 cents for every $1 a man earns The right of employees to be free from discrimination in their compensation is protected under several federal laws enforced by the U.S. Equal Employment Opportunity Commission: a) Equal Pay Act of 1963,  b)Title VII of the Civil Rights Act of 1964, c) Age Discrimination in Employment Act of 1967 d) Title I of the Americans with Disabilities Act of 1990.

Proving a Claim To bring a claim under the EPA, the employee must show that: a) a man and a woman; b) working at the same place; and c) doing the substantially the same job (equal work) and receiving unequal pay. It is the filing employee's burden to prove these requirements. The third element is obviously the most difficult to prove and will be covered below. Once the employee proves her case, the burden of proof then shifts to the employer to disprove any of the three elements. Employers can justify a pay differential by proving the pay difference is the result of: a) a seniority system; b) a merit system; c) a system which measures quantity or quality of work; or d) any reason other than gender

The glass ceiling is the name given to the invisible barrier that prevents women from advancing

Fighting, intoxication, or self-inflicted wounds by an employee will not receive compensation Benefits include money for lost income, disability, loss of limbs, prosthetic devices, medical services, burial costs, and survivor benefits Employers don’t have to pay for the insurance on agricultural workers, domestic workers, casual workers (like temporary office workers), public employees, and independent contractors Employees cannot sue their employer for the injury