Employment Laws

Introduction The federal government has enacted many laws to protect workers. The Department of Labor is responsible for enforcing labor laws that:  Provide unemployment, disability, and retirement insurance benefits

Introduction …labor laws that:  Establish minimum wage and regular working hours  Establish rules regarding overtime pay  Help workers injured on the job  Provide equal employment opportunities and prohibit discrimination  Establish safe working conditions

Introduction Laws also specify a maxi- mum number of hours minors can work during the school year. A work permit for those under age 16 is required in some states Employees who believe they have not received the protections required by law may turn to the Department of Labor for recourse, or remedy.

Social Security Act Passed in 1935 Established a national social insurance program that provides federal aid for the elderly and for disabled workers.

Social Security Act In 1965 the Medicare provision was added. It provides hospital and medical insurance for those 65 and older Social Security provides these benefits:  Old age retirement income  Survivorship income  Disability income  Health insurance

Social Security Act Benefits received depend on the amount of contri- butions made Contributions are mandatory for all workers Employers deduct Social Security and Medicare taxes from employee’s pay and send it to the U.S. Treasury for crediting to your SS account

Social Security Act Self employed workers pay their Social Security contributions when they pay their income taxes

Unemployment Compensation The Social Security Act requires every state to have an unemployment insurance program Unemployment insurance provides benefits to workers who lose their jobs through no fault of their own.

Unemployment Compensation After a waiting period, laid-off or terminated workers may collect a portion of their regular pay for a certain length of time Premiums for unemployment insurance are usually paid by employers

Unemployment Compensation Usually benefits are paid for a maximum of 26 weeks through the local state employment office In most states, an unemployed worker must wait for at least one week before receiving benefits

Unemployment Compensation To receive benefits a worker must have been employed for a minimum period of time (6 months to 1 year) (depending on the state) And…for a minimum amount of earnings ($400 or more per month in most states)

Unemployment Compensation Workers fired for a valid reason such as poor performance, are usually not entitled to receive benefits.

Fair Labor Standards Act Also known as the Wage and Hour Act, establishes a minimum wage It also requires hourly workers to be paid over- time wages of 1 ½ times their hourly rate for hours worked beyond 40 per week

Workers’ Compensation Workers’ compensation is an insurance program that pays benefits to workers and/or their families for injury, illness, or death that occurs as a result of the job.

Workers’ Compensation The employer is responsible for employee injuries and illnesses that are the result of employment, regardless of fault Benefits include payment to doctors and hospitals, to the employee for temporary or permanent disability, and to survivors in the event of death

Family and Medical Leave Act Allows employees to take up to 12 weeks of unpaid leave in a 12-month period for certain medical and family situations Some employers may choose to pay employees during some types of leave, such as sick leave, but they are not required by law to do so

Family and Medical Leave Act Valid circumstances for unpaid leave under the FMLA include:  Birth and care of a newborn child, including adoption of a child  Care of an immediate family member (spouse, child, or parent) with a serious health condition  Medical leave when the employee is unable to work because of a serious health condition

Laws Against Discrimination in Employment A number of laws protect workers from unfair treatment in the workplace:  Equal Pay Act – prohibits unequal pay for men and women doing similar work  Civil Rights Act of 1964 – prohibits discrimination in hiring, training, and promotion on the basis of race, color, gender, religion, or national origin  Age Discrimination Act – prohibits discrimination in employment decision against people age 40 and over  Americans with Disabilities Act – prohibits discrimination on the basis of physical or mental disabilities

Decoding your Paycheck Gross vs Net Pay Required Deductions  Income Tax (Federal, State, Local)  Unemployment  Social Security  Medicare Voluntary Deductions  Healthcare  Retirement  Charitable Donations

W4 A tax form you have to fill out when you get a job Determines # of personal allowances which affects tax withheld

Homework Fill out a W4 Minimum Wage ( What is the Federal minimum wage for 2014? What about PA? What state has the highest minimum wage? Unemployment What is the current unemployment rate? What was it in 2009/10?