1. CHAPTER 22 Employment Law
4/20/2017
CHAPTER 22 Employment Law
22-1 Making and Terminating Employment Contracts
22-2 Duties of Employers and Employees

2. Employment at Will
At-will employees – employees who do not have employment contracts.
Wrongful discharge – the discharge of an employee in violation of a statute, an employment contract, or public policy, or tortiously.
The employee can recover damages and other remedies.

3. 22-1 Making and Terminating Employment Contracts
GOALS
Describe how employment contracts are made
Explain how employment contracts are terminated
Chapter 22

4. HOW ARE EMPLOYMENT CONTRACTS MADE?
Terms of the employment contract
Express agreements
Implied agreements
Terms imposed by law
Chapter 22

5. HOW ARE EMPLOYMENT CONTRACTS TERMINATED?
By performance
By termination at will
Wrongful discharge
Violation of contract terms
Government employees
By material breach
Unemployment compensation
Chapter 22

6. 22-2 Duties of Employers and Employees
GOALS
List an employer’s duties
Name an employee’s duties

7. WHAT ARE AN EMPLOYER’S DUTIES?
Duties owed to employees
Reasonable treatment
Safe working conditions
Fair labor standards
Payroll deductions
Military service
Voting
Chapter 22

8. WHAT ARE AN EMPLOYER’S DUTIES?
(continued)
Duties owed to minors
State laws
Federal law
Duties owed to those injured by employees

9. WHAT ARE AN EMPLOYEE’S DUTIES?
Duty to fulfill the employment contract
Duty of obedience
Duty of reasonable skill
Duty of loyalty and honesty
Duty of reasonable performance
Chapter 22

10. Workers’ Compensation Acts
Acts that compensate workers and their families if workers are injured in connection with their jobs.

11. Workers’ Compensation Acts
Workers’ compensation benefits
vary by state.
are paid according to preset limits established by statute or regulation.

12. Workers’ Compensation Insurance
States usually require employers to:
To pay for workers’ compensation insurance, or
To self-insure by making payments into a contingency fund.

13. Employment Related Injury
To recover under workers’ compensation, the worker’s injuries must have been employment-related.
Stress may be a compensable work-related injury.

14. Exclusive Remedy Workers’ compensation is an exclusive remedy.
Workers cannot sue their employers in court for damages.
Exception occurs when an employer intentionally injures an employee.

15. Occupational Safety and Health Act (1970)
Enacted to promote safety in the workplace.
Established the Occupational Safety and Health Administration (OSHA).
Virtually all private employers are within the scope of the act.
Federal, state, and local governments are exempt.

16. Occupational Safety and Health Act (continued)
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.

17. Occupational Safety and Health Act (continued)
OSHA is empowered to inspect places of employment for health hazards and safety violations.
If a violation is found, OSHA can issue a written citation.
Requires the employer to abate or correct the situation.

18. Types of OSHA Standards
Specific Duty Standard
Addresses a safety problem of a specific duty nature.
e.g., requirement for a safety guard on a particular type of equipment
General Duty Standard
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.”

19. Fair Labor Standards Act (FLSA)
Federal act enacted in 1938 to protect workers.
Prohibits child labor
Establishes minimum wage requirements
Establishes overtime pay requirements

20. 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.

21. 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.

22. 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.

23. Overtime Pay
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.

24. Family and Medical Leave Act
Applies to employers with 50 or more workers, federal, state, and local government workers
Employee must have worked for employer for at least one year
Employee must have performed 1250 hours of work in previous twelve-month period

25. Family and Medical Leave Act (continued)
Provides up to 12 weeks of unpaid leave for:
Birth of child
Placement of child for adoption or foster care
Serious health condition
Care for spouse, child, or parent with serious health condition
Must use all available sick time and vacation time before it is applied

26. Family and Medical Leave Act (continued)
Employee mist be restored to either same or equivalent position
Must be given equivalent pay and benefits
No accrual of seniority

27. Consolidated Omnibus Budget Reconciliation Act (COBRA)
Separated employee must be offered the opportunity to continue group health program
Separated employee bears cost plus administration fees

28. Employee Retirement Income Security Act (ERISA)
If employer offers a pension plan ERISA applies.
Establishes record-keeping and disclosure requirements
Sets requirements for vesting
Establishes percentage of assets that can be invested in employer’s securities

29. Immigration Reform and Control Act (IRCA)
Administered by U.S. Immigration and Naturalization Service
Makes it unlawful to hire illegal immigrants.
Employers must keep records.
Employers must file I-9.