Business Law Chapter 42

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Employee Privacy

Employees do not have a reasonable expectation of privacy when using their employers' e-mail system, even during nonworking hours.

Remedies for Violations of FMLA

The plaintiff may recover damages for unpaid wages or salary, lost benefits, denied compensation, and actual monetary losses up to an amount equivalent to the employee's wages for 12 weeks as well as attorney fees and court costs.

Workers' Compensation Laws

These are purely STATE laws. Under them, an employee is guaranteed the right to recover for injuries that occurred on the job without having to sue his or her employer. To recover the benefits, the injured party must prove that: 1. They are an employee 2. Both employer and employee are covered by the state workers' compensation program. 3. The injury occurred on the job. 4. The accident leading to the injury must have taken place during the time and within the scope of the claimant's employment.

Fair Labor Standards Act (FLSA)

This act covers all employers engaged in interstate commerce or the production of goods for interstate commerce. It requires that a minimum wage of a specified amount be paid to all employees in covered industries.

Employment-at-Will Doctrine

Unless an employee belongs to a union or has an employment contract with the employer, the employment relationship falls under this doctrine. This doctrine states that a contract of employment for an indeterminate period of time may be terminated at will by either party at any time and for any reason. *EXCEPTIONS: 1. Implied-contract exception= an implied contract may arise from statements the employer makes in an employment handbook or materials advertising the position 2. Public policy exceptions= prohibits employers from firing employees engaged in activities that further the public interest 3. Implied covenant of good faith and fair dealing exception= assumes that every employment contract contains an implicit understanding that the parties will deal fairly with one another.

Employee Retirement Income Security Act (ERISA)

A federal law that requires that private employers keep employees informed about voluntarily established pension and health plans. It sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. Employer must provide participants with: 1. Plan info 2. Assurances that those in charge of managing plan assets have fiduciary responsibility 3. A grievance and appeals process for participants to get benefits from their plans 4. The right to sue for benefits and breaches of fiduciary duty

Family and Medical Leave Act (FMLA)

This act covers all employers, as well as private employers with 50 or more employees, and guarantees all eligible employees (those who work at least 25 hrs a week for 12 months before the leave) up to 12 weeks unpaid leave during any 12 month period for any of the following family-related occurences: 1. Birth of a child 2. Adoption of a child 3. Placement of a foster child in the employee's care 4. Care of a seriously ill spouse, parent, or child 5. A serious health condition that renders the employee unable to perform any of the essential functions of his or her job.

Federal Unemployment Tax Act (FUTA)

This act created a state system to provide unemployment compensation to qualified employees who lose their jobs, employers pay taxes to the states, which deposit the $ into the federal gov'ts Unemployment Insurance Fund.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

This act ensures that employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive medical, dental, or optical benefits can continue receiving benefits for themselves and their dependents under the employer's policy. Employee must pay the premiums for the policy plus a 2% administration fee, to maintain coverage up to 18 or 29 months if disabled. *EXCEPTIONS: 1. If the employee is fired for gross misconduct. 2. If the employer decides to eliminate benefits for all current employees.

Occupational Safety and Health Act (OSHA)

This act requires that every employer "furnish to each of his employees...employment...free from recognized hazards that are likely to cause death or serious harm", employers must display the federal or state OSHA poster with info for employees.


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