1. Copyright © 2009 by Pearson Prentice Hall. All rights reserved. PowerPoint Slides to Accompany CONTEMPORARY BUSINESS AND ONLINE COMMERCE LAW 6 th Edition by Henry R. Cheeseman Chapter 35 Employment, Worker Protection, and Labor Law

2. 35 - 2Copyright © 2009 by Pearson Prentice Hall. All rights reserved. The right of workers to form, join, and assist labor unions is a statutorily protected right in the United States.

3. 35 - 3Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Federal Labor Union Statutes: Norris- LaGuardia Act of 1932 Stipulates that it is legal for employees to organize Removes the federal courts’ power to enjoin peaceful union activity

4. 35 - 4Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Federal Labor Union Statutes: National Labor Relations Act of 1935 Wagner ActNLRA Also known as the Wagner Act or NLRA Establishes the right of employees to: form, join, and assist labor organizations bargain collectively with employers engage in concerted activity to promote these rights Places an affirmative duty on employers to bargain and deal in good faith with unions

5. 35 - 5Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Federal Labor Union Statutes: Labor- Management Relations Act of 1947 Amended the Wagner Act Taft-Hartley Act Also known as the Taft-Hartley Act Expands the activities that labor unions can engage in Gives employers the right to engage in free- speech efforts against unions prior to a union election Gives the President the right to seek an injunction against a strike that would create a national emergency

6. 35 - 6Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Federal Labor Union Statutes: Labor- Management Reporting and Disclosure Act Landrum-Griffin Act Also known as the Landrum-Griffin Act rights of union members: Regulates internal union affairs and establishes the rights of union members: Requires regularly scheduled elections for union officials by secret ballot Prohibits ex-convicts and communists from holding union office Makes union officials accountable for union funds and property

7. 35 - 7Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Federal Labor Union Statutes: Railway Labor Act of 1926 (amended in 1934) Covers employees of railroad and airline carriers This act permits: self-organization of employees prohibits interference with this right provides for the adjustment of grievances

8. 35 - 8Copyright © 2009 by Pearson Prentice Hall. All rights reserved. National Labor Relations Board (NLRB) Administrative agency created by the National Labor Relations (Wagner) Act: Oversees union elections Prevents employers and unions from engaging in illegal and unfair labor practices Enforces and interprets certain federal labor laws NLRB decisions are enforceable in court

9. 35 - 9Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Organizing a Union Section 7 of the NLRA Section 7 of the NLRA – gives employees the right to join together to form a union. Appropriate Bargaining Unit Appropriate Bargaining Unit – the group that the union is seeking to represent: Must be defined before the union can petition for an election Managers and professional employees may not belong to unions formed by employees whom they manage

10. 35 - 10Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Union Elections (1 of 2) 30% of the employees in the bargaining unit must indicate interest in joining or forming a union. NLRB is petitioned, investigates and sets election date: Contested election Consent election Decertification election

11. 35 - 11Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Union Elections (2 of 2) If a simple majority of the employees of the appropriate bargaining unit vote to join a union, the union is certified as the bargaining agent of all the employees, even those who did not vote for the union

12. 35 - 12Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Union Solicitation on Company Property (1 of 2) An employer may restrict union solicitation activities by employees to nonworking areas during employees’ free time. Off-duty employees may be barred from union solicitation on company premises. Non-employee union organizers or officers may be prohibited from soliciting on behalf of the union anywhere on company property.

13. 35 - 13Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Union Solicitation on Company Property (2 of 2) Inaccessibility Exception A rule that permits employees and union officials to engage in union solicitation on company property if the employees are beyond reach of reasonable union efforts to communicate with them

14. 35 - 14Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Illegal Interference with an Election Section 8(a) of the NLRA employer Section 8(a) of the NLRA – makes it an unfair labor practice for an employer to interfere with, coerce, or restrain employees from exercising their statutory right to form and join a union Section 8(b) of the NLRA unions Section 8(b) of the NLRA – prohibits unions from engaging in unfair labor practices that interfere with a union election

15. 35 - 15Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Collective Bargaining The act of negotiating contract terms between an employer and the members of a union Collective Bargaining Agreement Collective Bargaining Agreement – the resulting contract from a collective bargaining procedure. good faith. The employer and the union must bargain with each other in good faith.

16. 35 - 16Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Subjects of Collective Bargaining (1 of 2) Compulsory Subjects Compulsory Subjects Wages Hours Other terms and conditions of employment Illegal Subjects Illegal Subjects Closed shops Discrimination

17. 35 - 17Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Subjects of Collective Bargaining (2 of 2) Permissive Subjects Permissive Subjects Size and composition of the supervisory force Location of plants Corporate reorganizations Any other subjects that are not compulsory or illegal

18. 35 - 18Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Union Security Agreements (1 of 2) Union Shop Union Shop Employee must join the union within a certain number of days after being hired Employees who do not join must be discharged by the employer upon notice from the union Union members pay union dues to the union Union shops are lawful

19. 35 - 19Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Union Security Agreements (2 of 2) Agency Shop Employees do not have to become union members They do have to pay an agency fee (an amount equal to union dues) to the union Agency shops are lawful

20. 35 - 20Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Check-Off Provision Upon proper notification by the union, union shop and agency shop employers are required to: 1.Deduct union dues and agency fees from employees’ wages, and 2.Forward these dues to the union check-off provision. This is called a check-off provision.

21. 35 - 21Copyright © 2009 by Pearson Prentice Hall. All rights reserved. State Right-to-Work Laws Section 14(b) of the Taft Hartley Act Section 14(b) of the Taft Hartley Act – allows states to enact right-to-work laws that outlaw union or agency shops: Individual employees cannot be forced to join a union or pay union dues and fees even though a union has been elected by other employees. 21 states have enacted right-to-work laws.

22. 35 - 22Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Strikes strike The NLRA gives union management the right to recommend that the union call a strike if a collective bargaining agreement cannot be reached. A majority vote of the union’s members must agree to the action before there can be a strike.

23. 35 - 23Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Picketing (1 of 2) The actions of strikers walking in front of the employer’s premises carrying signs announcing their strike The right to picket is implied from the NLRA. An employer may seek an injunction against unlawful picketing.

24. 35 - 24Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Picketing (2 of 2) Picketing is lawful unless it: 1.It is accompanied by violence 2.Obstructs customers from entering the employer’s place of business 3.Prevents non-striking employees from entering the employer’s premises 4.Prevents pickups and deliveries at the employer’s place of business Picketing is lawful unless it: 1.It is accompanied by violence 2.Obstructs customers from entering the employer’s place of business 3.Prevents non-striking employees from entering the employer’s premises 4.Prevents pickups and deliveries at the employer’s place of business

25. 35 - 25Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Secondary Boycott Picketing A type of picketing where unions try to bring pressure against an employer by picketing his or her suppliers or customers Such picketing is lawful only if it is product picketing. It is illegal if it is directed against the neutral employer instead of the struck employer’s product.

26. 35 - 26Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Illegal Strikes Several types of strikes have been held to be illegal. They are not protected by federal labor law. Illegal strikers may be discharged by the employer with no rights to reinstatement.

27. 35 - 27Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Illegal strikes are: Violent Strikes Sit-Down Strikes Partial or Intermittent Strikes Violent Strikes Sit-Down Strikes Partial or Intermittent Strikes Wildcat Strikes Strikes during the 60- day Cooling-Off Period Strikes in Violation of a No-Strike Clause Wildcat Strikes Strikes during the 60- day Cooling-Off Period Strikes in Violation of a No-Strike Clause

28. 35 - 28Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Crossover Worker Individual members of a union do not have to honor the strike They may: 1.Choose not to strike, or 2.Return to work after joining the strikers for a time

29. 35 - 29Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Replacement Workers Workers who are hired to take the place of striking workers They can be hired on either a temporary or permanent basis. If replacement workers are given permanent status, they do not have to be dismissed when the strike is over.

30. 35 - 30Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Employer Lockout An act of an employer to prevent employees from entering the work premises when the employer reasonably anticipates a strike

31. 35 - 31Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Internal Union Affairs (1 of 2) internal union rules Unions may adopt internal union rules to regulate the operation of the union, acquire and maintain union membership, etc. Title I of the Landrum-Griffin Act labor’s bill of rights Title I of the Landrum-Griffin Act – referred to as labor’s bill of rights. Gives each union member equal rights and privileges to: Nominate candidates for union office Vote in elections Participate in membership meetings internal union rules Unions may adopt internal union rules to regulate the operation of the union, acquire and maintain union membership, etc. Title I of the Landrum-Griffin Act labor’s bill of rights Title I of the Landrum-Griffin Act – referred to as labor’s bill of rights. Gives each union member equal rights and privileges to: Nominate candidates for union office Vote in elections Participate in membership meetings

32. 35 - 32Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Internal Union Affairs (2 of 2) A union may discipline members for: Walking off the job in a non-sanctioned strike Working for wages below union scale Spying for an employer Any other unauthorized activity that has an adverse economic impact on the union

33. 35 - 33Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Worker Adjustment and Retraining Notification (WARN) Act of 1988 Covers employers with 100 or more employees certain plant closings or layoffs Requires employers to give their employees 60 days’ notice before engaging in certain plant closings or layoffs If the employees are represented by a union, the notice must be given to the union If they are not, the notice must be given to the employees individually Covers employers with 100 or more employees certain plant closings or layoffs Requires employers to give their employees 60 days’ notice before engaging in certain plant closings or layoffs If the employees are represented by a union, the notice must be given to the union If they are not, the notice must be given to the employees individually

34. 35 - 34Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Workers’ Compensation Acts (1 of 4) Acts that compensate workers and their families if workers are injured in connection with their jobs.

35. 35 - 35Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Workers’ Compensation Acts (2 of 4) Depending on the state, employers are required either: To pay for workers’ compensation insurance, or To self-insure by making payments into a contingency fund Workers’ compensation benefits vary by state and are paid according to preset limits established by statute or regulation

36. 35 - 36Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Workers’ Compensation Acts (3 of 4) Employment-Related Injury Employment-Related Injury To recover under workers’ compensation, the worker’s injuries must have been employment-related Many workers’ compensation acts include stress as a compensable work-related injury

37. 35 - 37Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Workers’ Compensation Acts (4 of 4) Exclusive Remedy Exclusive Remedy Workers’ compensation is an exclusive remedy Workers cannot sue their employers in court for damages An exception occurs when an employer intentionally injures an employee

38. 35 - 38Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Occupational Safety and Health Act (1 of 3) Enacted in 1970 to promote safety in the workplace Occupational Safety and Health Administration (OSHA) Established the Occupational Safety and Health Administration (OSHA) Generally, all private employers are within the scope of the act Federal, state, and local governments are exempt

39. 35 - 39Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Occupational Safety and Health Act (2 of 3) record keeping reporting requirements The act 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.

40. 35 - 40Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Occupational Safety and Health Act (3 of 3) health hazardssafety violations. OSHA is empowered to inspect places of employment for health hazards and safety violations. written citation. If a violation is found, OSHA can issue a written citation. Requires the employer to abate or correct the situation

41. 35 - 41Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Types of OSHA Standards Specific Duty Standard Addresses a safety problem of a specific duty nature i.e., requirement for a safety guard on a particular type of equipment Specific Duty Standard Addresses a safety problem of a specific duty nature i.e., requirement for a safety guard on a particular type of equipment General Duty Standard A duty that an employer has 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.” General Duty Standard A duty that an employer has 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.”

42. 35 - 42Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Fair Labor Standards Act (FLSA) of 1938 (and subsequent amendments) Federal act enacted to protect workers Prohibits child labor Establishes minimum wage requirements Establishes overtime pay requirements

43. 35 - 43Copyright © 2009 by Pearson Prentice Hall. All rights reserved. FLSA: Child Labor The FLSA forbids the use of oppressive child labor. It is unlawful to ship goods produced by businesses that use oppressive child labor. The Department of Labor defines the standards for lawful child labor.

44. 35 - 44Copyright © 2009 by Pearson Prentice Hall. All rights reserved. FLSA: Minimum Wage and Overtime Pay Managerial, administrative, and professional employees are exempt from the FLSA’s wage and hour provisions. Employers are required to pay covered (non-exempt) workers at least the minimum wage for their regular work hours. Overtime pay is also mandated.

45. 35 - 45Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Minimum Wage Set by Congress and can be changed Employers are permitted to pay less than minimum wage to students and apprentices. An employer may reduce minimum wages by an amount equal to the reasonable cost of food and lodging provided to employees.

46. 35 - 46Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Overtime Pay one-and-a half times their regular pay for each hour worked in excess of 40 hours. An employer cannot require nonexempt employees to work more than 40 hours per week unless they are paid one-and-a half times their regular pay for each hour worked in excess of 40 hours. Each week is treated separately.

47. 35 - 47Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Other Worker Protection 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.

48. 35 - 48Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Other Worker Protection Laws (2 of 2) LawDescription Family and Medical Leave Act (FMLA) Guarantees workers unpaid time off from work for medical emergencies, birth or adoption of a child. No loss in pay, benefits, and status up returning to work. 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.

49. 35 - 49Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Government Programs: Unemployment Compensation Federal Unemployment Tax Act (FUTA) Federal Unemployment Tax Act (FUTA) – a federal act that requires employers to pay unemployment taxes: Unemployment compensation is paid to workers who are temporarily unemployed State governments administer unemployment compensation programs under general guidelines set by the federal government.

50. 35 - 50Copyright © 2009 by Pearson Prentice Hall. All rights reserved. Government Programs: Social Security A Federal system that provides limited retirement and death benefits to covered employees and their dependents Federal Insurance Contributions Act (FICA) Federal Insurance Contributions Act (FICA) – a federal act that says employees and employers must make contributions into social security. Self-Employment Contributions Act Self-Employment Contributions Act – a federal act that says self-employed persons must pay Social Security taxes equal to the combined employer- employee amount. A Federal system that provides limited retirement and death benefits to covered employees and their dependents Federal Insurance Contributions Act (FICA) Federal Insurance Contributions Act (FICA) – a federal act that says employees and employers must make contributions into social security. Self-Employment Contributions Act Self-Employment Contributions Act – a federal act that says self-employed persons must pay Social Security taxes equal to the combined employer- employee amount.