1. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Chapter 11 Labor-Related Laws

2. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Labor-Related Laws Laws governing the practice of cosmetology and barbering are usually controlled by the state legislators, with specific items left to the State Board of Barbers and Cosmetologists to regulate actual practice or activities of the trade These specific items are known as rules and regulations

3. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Labor-Related Laws Labor laws do not generally speak to cosmetologists and barbers directly, but form guidelines for all businesses to follow There are over 400 federal laws, thousands of state laws, and several thousand local regulations that pertain to employees’ rights and hiring practices

4. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Labor-Related Laws One way a law is formed is by legal action brought by one person against another or a corporation Another way a law is formed is by the vote of the people on an issue

5. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers Treat all employees fairly and consistently in: –hours to be worked –vacation schedules –compensation for work –customer relations –dress/uniform policies –cleanup duties –days off

6. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers A policy document shows that all employees are treated the same regardless of age, sex, sexual orientation, marital status, religion, or nationality, and applies to all employees equally

7. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers When advertising for a salon and spa position, be sure that discriminatory statements are not used: – “male only” – “must be single female” – “must be under 25 years old”

8. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers When interviewing, be careful not to ask questions or make statements that could be perceived as discrimination: –“that is a fine cross you are wearing; do you go to a local church?” –“what does your spouse do for living?”

9. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers You have a right to have the interviewee take a skill test for the position All applicants must be scored on all items required for the job

10. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers The compensation for the employee must be the same at each level of employment You may pay employees of 10 years with the business a greater amount than a new hire; however, all employees of the same level must be compensated at the same rate

11. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers All forms of advancement must be the same for all employees. You can send them at different times and to different places, but the opportunity must be made available to all and should cost the same amount.

12. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers Shoptalk –Necessary and healthy to promote good working relationships among employees –If the conversation becomes offensive to one individual, it should stop

13. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Guidelines for Owners/Managers Keep all employee records confidential Keep all employee applications and interview forms confidential All such records and forms are usually required to be held for a period of time, and most can be electronically stored

14. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Major Laws Affecting the Cosmetology Industry The major federal laws that have a direct effect on businesses employing over 15 people or who do business across state borders include: –Civil Rights Law of 1964 –Pregnancy Discrimination Act of 1978 –Age Discrimination Act of 1978 –Immigration Reform and Control Act of 1986 –Americans with Disabilities Act of 1990

15. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Civil Rights Law of 1964 Deals with discrimination based on race, sex, and religious beliefs Was later expanded through the Occupational Qualification Act to include age, national origin, disabilities, and marital status

16. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Pregnancy Discrimination Act of 1978 Provides leave time to pregnant employees or their spouses Allows time for female employees to –go to and from doctor’s appointments –have various medical tests –take time off for delivery and care of the newborn

17. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Age Discrimination Act of 1978 Deals with hiring people over 40 years old

18. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Immigration Reform and Control Act of 1986 Prohibits the employment of illegal aliens, except under certain conditions Makes sure that the employer has a valid license in the state in which the establishment is located and has legal papers allowing any aliens to have employment within the United States The burden of proof falls upon the employer

19. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Americans with Disabilities Act (ADA) of 1990 Along with the Rehabilitation Act of 1994 has defined various illnesses or disabilities in a very broad format The current definition of disabilities includes— along with obvious disabilities (loss of limbs, sight, hearing, ability to walk, etc.)—obesity, suicidal tendencies, borderline personalities, post- traumatic stress syndrome, diabetes, allergies to tobacco and chemicals, HIV/AIDS, alcoholism, and drug addictions, all falling under the ADA

20. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Americans with Disabilities Act(ADA) of 1990 The law requires employees to make reasonable accommodations to disability applicants

21. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Wages and Hours The Fair Labor Standards Act (FLSA) standardizes wages and overtime pay in most public and private employment The act requires employers to pay employees the federal minimum wage and overtime pay of 1.5 times the regular rate of pay, unless employees are otherwise exempt

22. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Employment Contracts A prospective employee signs a contract and agrees to work for a company for a given amount of time for a given compensation equal to or significantly less than other employees Usually, the decrease in compensation is for marketing, promotions, and education that the salon and spa is willing to provide the new employee

23. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Employment Contracts The new employee agrees not to work for another salon and spa within a certain number of miles or for a period of time after the employment has ended.

24. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Summary An increasing number of communities are adopting laws protecting employees from unfair business practices While interviewing and conducting business, be sure that the business does not use practices that could be construed as deliberately, intentionally, or willfully prejudicial

25. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Summary The Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1994 now form the basis for most labor disputes with regard to employment practices Reasonable accommodation must be followed in making a salon and spa accessible to all employees; the salon and spa should not be held responsible for such accommodations to the extent of extreme financial stress

26. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Summary Contracts for employment are used in many areas of employment; those that have been tested have resulted in mixed reviews All contracts should be reviewed by your lawyer, as they will be the ones to represent you and your business if a lawsuit is filed