Ethics Chapter 12
In general, workers cannot sue for on-the-job injuries that are self-inflicted.
True Most on-the-job injuries are covered by workers' compensation, but injuries that are self-inflicted (including starting a fight) and others such as those springing from alcohol or drug use may not be.
Alex, an at-will employee, worked for Falls Industries for ten years and had always received satisfactory performance evaluations. After arriving late for work twice, he was fired. He sued Falls Industries claiming wrongful discharge and alleged that the employee manual specified three infractions must occur before discharge. Alex is pursuing which of the following judicial limitations to the at-will doctrine? A) express or implied contracts B) an implied covenant of good faith and fair dealing C) the tort of violating an established public policy D) the doctrine of respondeat superior
A Alex alleged the employee manual created an implied contract of employment. An increasing number of court decisions provide grounds for dismissed at-will employees to claim that they have been wrongfully discharged. Those judicial decisions were often provoked by transparently unjust dismissals including, for example, whistle-blowers who exposed their employers' misdeeds and employees who declined to commit perjury on behalf of their employers. Those judicial limitations to the at-will doctrine fall into three categories: (1) express or implied contracts, (2) an implied covenant of good faith and fair dealing, and (3) the tort of violating an established public policy.
Employers often bear legal responsibility for employees' accidents or wrongs. This vicarious liability springs from the doctrine of ________. A) respondeat superior B) res ipsa loquitur C) caveat emptor D) stare decisis
A An enterprise ordinarily will not be liable for the acts of its independent contractors. Employers, on the other hand, often bear legal responsibility for employees' accidents or wrongs. That liability may spring from the doctrine of respondeat superior (let the master answer), a form of vicarious liability (sometimes called imputed liability).
Reporting an employer's illegal activity is termed ________. A) whistle-blowing B) perjury C) collusion D) racketeering
A An increasing number of court decisions provide grounds for dismissed at-will employees to claim that they have been wrongfully discharged. Those judicial decisions were often provoked by transparently unjust dismissals including, for example, whistle-blowers who exposed their employers' misdeeds and employees who declined to commit perjury on behalf of their employers.
The Occupational and Safety Health Administration's most publicized enforcement mechanism is A) the unannounced on-site inspection. B) the subpoena. C) the annual records review. D) the site-specific inspection.
A OSHA's most publicized enforcement mechanism is the unannounced on-site inspection. Inspections arise at the initiative of the agency itself or at the request of employees or their representatives. The inspections must be conducted in a reasonable manner during working hours or other reasonable times, and ordinarily they must not be announced in advance. To enhance efficiency, OSHA practices a targeted, site-specific inspection plan designed to identify and monitor the workplaces most likely to have safety and health problems.
Which of the following statements is true of the Drug-Free Workplace Act of 1988? A) It requires the federal government to develop anti-drug policies for each employer. B) It requires employers who have contracts of $100,000 or more with the federal government to provide drug-free awareness programs for employees. C) It applies to all private employers in the United States. D) It exempts employers who receive aid from the federal government.
B The Drug-Free Workplace Act of 1988 applies to employers who have contracts of $100,000 or more with the federal government or who receive aid from the government. Those employers are required to develop an antidrug policy for employees. They must provide drug-free awareness programs for employees, and they must acquaint employees with available assistance for those with drug problems, while also warning them of the penalties that accompany violation of the policy.
Under a(n) ________, legitimate business communications, with some exceptions, are shielded from liability. A) privileged communication B) qualified privilege C) immune communication D) absolute immunity
B Truth is a complete defense in defamation cases, and managers who offer factual, honest professional judgments are unlikely to face such claims. Further, many state courts provide the protection of a qualified privilege. Under this privilege, legitimate business communications, with some exceptions, are shielded from liability.
A business is typically not responsible for all but which of the following if it hires an independent contractor rather than an employee? A) unemployment insurance B) employment discrimination claims C) intentional torts committed on behalf of the employer D) withholding payroll taxes
C A business that hires an independent contractor generally is not required to comply with a wide range of employment and labor law standards that would apply were the worker an employee. Thus, a business must provide, for example, unemployment insurance to its employees, but generally would not need to do so for independent contractors. Furthermore, employers generally are not liable for employment discrimination claims by independent contractors or for most torts committed by independent contractors in the course of work. While employers are responsible for payroll taxes such as FICA and federal and state unemployment insurance, as well as for withholding income tax from their employees, these tax obligations of a business do not extend to its independent contractors.
Aubrey, a private-accountant, was embarrassed and fired from his job at Sandwiches-R-Us after his employer accused him of embezzling money. The accusation was made with no factual basis. When Aubrey applied for another job, his former employer told the prospective employer why Aubrey was fired. Aubrey can sue his former employer for ________. A) résumé fraud B) invasion of privacy C) defamation D) collusion
C Aubrey can sue his employer for defamation. Broadly, a successful defamation suit requires the following conditions: 1) A false statement; 2) The statement must be "published" to a third party; 3) The employer must be responsible for the publication; and 4) The plaintiff's reputation must be harmed.
Which of the following is true of the H-1B visas? A) The number of H-1B visas available annually is unlimited. B) U.S. businesses have used the H-1B visa program to send American workers to other countries. C) In seeking an H-1B visa, an employer must affirm that the hiring will not harm wages and working conditions of employees in similar jobs. D) It brings workers for the non-skilled, non-technical jobs only.
C Businesses in the United States have used the H-1B visa program to bring foreign workers to the United States to fill positions requiring special theoretical or technical expertise in specialized field. In seeking an H-1B visa, an employer must affirm to the U.S. Department of Labor that the hiring will not harm wages and working conditions of employees in similar jobs.
Which of the following is true of a cash balance plan? A) The employees' contributions in a cash balance plan are not accurately defined. B) All of the investment risk in cash balance plans remains with the employees. C) The benefits are expressed in periodic payment during retirement. D) The benefits are expressed in terms of an accumulated lump sum.
D A particularly prominent hybrid, a cash balance plan, is a defined benefit plan that acts somewhat like a defined contribution plan. The employer makes regular, defined contributions and guarantees a benefit amount to employees based on an established formula, but the benefits are maintained in individual accounts and are expressed in terms of an accumulated lump sum, a cash balance, rather than as a periodic payment during retirement. All of the investment risk in cash balance plans remains with the employer.
An increasing number of court decisions provide grounds for dismissed at-will employees to claim that they have been wrongfully discharged. Those judicial limitations to the at-will doctrine fall into all but which of the following categories? A) express or implied contracts B) an implied covenant of good faith and fair dealing C) the tort of violating an established public policy D) the doctrine of respondeat superior
D An increasing number of court decisions provide grounds for dismissed at-will employees to claim that they have been wrongfully discharged. Those judicial decisions were often provoked by transparently unjust dismissals including, for example, whistle-blowers who exposed their employers' misdeeds and employees who declined to commit perjury on behalf of their employers. Those judicial limitations to the at-will doctrine fall into three categories: (1) express or implied contracts, (2) an implied covenant of good faith and fair dealing, and (3) the tort of violating an established public policy.
Identify a true statement about workers' compensation. A) It covers all self-inflicted on-the-job injuries. B) It is not the exclusive remedy for workplace injury. C) It covers the entire labor force. D) It does not require proof of employer negligence.
D In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment. Proof of employer negligence is not required, and the traditional defenses such as contributory negligence are not available to the employer.
Which of the following statements is true of random testing? A) All states have made random drug testing mandatory in safety-sensitive jobs. B) The U.S. Supreme Court has upheld such testing in all private sector settings. C) All states forbid, by statute, random drug testing except for national security jobs. D) Random testing is often a balance between an employee's right to privacy and an employer's needs.
D Random testing sometimes produces significant legal issues. A number of states forbid random drug testing or limit it to safety-sensitive situations. The U.S. Supreme Court has upheld such testing for public-sector employees where public safety is involved and for those having access to particularly sensitive information. The legality of drug testing often reduces to a balancing test where the employee's right to privacy is balanced against the employer's business needs. Where safety and security are involved and when notice is provided, the courts are more supportive of testing.
The Family and Medical Leave Act: A) protects recovering drug addicts and those erroneously believed to be drug abusers, but not employees or applicants who are currently abusing drugs. B) requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months. C) promulgates and enforces health and safety standards that identify and seek to correct specific workplace hazards and problems. D) entitles eligible employees of covered employers to take job-protected, unpaid leave for certain family-related or medical reasons.
D The Family and Medical Leave Act (FMLA) entitles eligible employees of covered employers to take job-protected, unpaid leave for certain family-related or medical reasons. Eligible employees are entitled to 12 weeks of FMLA leave in a 12-month period for the birth, adoption, or foster care placement of a child, to care for a child, spouse, or parent who has a serious medical condition, or for the employee's own serious medical condition.
In the context of drug testing, which of the following forbids unreasonable searches and seizures? A) The Fourteenth Amendment to the U.S. Constitution B) The First Amendment to the U.S. Constitution C) All 50 state constitutions D) The Fourth Amendment to the U.S. Constitution
D The Fourth Amendment to the U.S. Constitution forbids unreasonable searches and seizures. Thus, government employers ordinarily cannot conduct a search without individualized suspicion-that is, without probable cause.
Which of the following acts provided for an unemployment insurance program? A) The Fair Labor Standards Act B) The Unemployment Compensation Act C) The Equal Employment Opportunity Act D) The Social Security Act
D The tragedy of the Great Depression, when up to 25 percent of the workforce was unemployed, led in 1935 to the passage of the Social Security Act, one portion of which provided for an unemployment insurance program. Today, all 50 states and the federal government are engaged in a cooperative system that helps protect the temporarily jobless.
Under ________, an employer will be liable for an employee's acts which fall outside the scope of employment. A) respondeat superior B) vicarious liability C) imputed liability D) negligence liability
D Typically, an employer is liable on negligence grounds for hiring or retaining an employee whom the employer knew or should have known to be dangerous, incompetent, dishonest, or the like when that information was directly related to the injury suffered by the plaintiff. Under negligence liability, an employer may be liable for acts outside the scope of employment.
All states forbid random drug testing or limit it to safety-sensitive situations.
False A number of states forbid random drug testing or limit it to safety-sensitive situations. The U.S. Supreme Court has upheld such testing for public-sector employees where public safety is involved and for those having access to particularly sensitive information.
A cash-on-demand plan is a defined benefit plan that acts somewhat like a defined contribution plan.
False A prominent hybrid pension plan, a cash balance plan, is a defined benefit plan that acts somewhat like a defined contribution plan. The employer makes regular, defined contributions and guarantees a benefit amount to employees based on an established formula. These benefits are maintained in individual accounts and are expressed in terms of an accumulated lump sum, a cash balance, rather than as a periodic payment during retirement.
Respondeat superior is the dominant test in determining whether a worker is an employee or independent contractor.
False Degree of control is the dominant test in determining whether a worker is an employee or independent contractor. When an employer controls or has the right or ability to control the worker's performance, the worker is likely to be considered an employee. The doctrine of respondeat superior (let the master answer) is a form of vicarious liability (sometimes called imputed liability).
Under the Fair Labor Standards Act, employers must now pay double time for any work beyond 40 hours per week.
False Most workers covered under the Fair Labor Standards Act (FLSA) must receive overtime pay of at least 1½ times their regular pay rate for hours worked over 40 hours per week. However, FLSA also recognizes exemptions for certain occupations, such as managers, outside salespersons, administrators, and professionals with advanced degrees.
The Family and Medical Leave Act entitles eligible employees up to 15 weeks of paid leave for the birth, adoption, or foster care placement of a child, to care for a child, spouse, or parent who has a serious medical condition, or for the employee's own serious medical condition.
False The Family and Medical Leave Act (FMLA) entitles eligible employees of covered employers to take job-protected, unpaid leave for certain family-related or medical reasons. Eligible employees are entitled to 12 weeks of FMLA leave in a 12-month period for the birth, adoption, or foster care placement of a child, to care for a child, spouse, or parent who has a serious medical condition, or for the employee's own serious medical condition.
The unemployment insurance program in the United States is financed through a payroll tax paid by employees.
False The federal government and all 50 states in the United States are engaged in a cooperative system that helps protect the temporarily jobless. The system is financed through a payroll tax paid by employers.
One of the major objectives of the Fair Labor Standards Act is the establishment of a minimum wage that provides an equitable standard of living for all employees.
False The major objectives of the Fair Labor Standards Act (FLSA) are: 1) The establishment of a minimum wage that provides at least the foundation for a modest standard of living for employees; 2) A flexible ceiling on hours worked weekly, the purpose of which is to increase the number of employed Americans; 3) Child labor protection; and 4) Equal pay for equal work regardless of gender.
Publication is a complete defense in defamation cases.
False Truth is a complete defense in defamation cases, and managers who offer factual, honest professional judgments are unlikely to face such claims. Further, many state courts provide employers with a qualified privilege, which allows immunity from liability for good faith employment references.
A business that hires an independent contractor generally is not required to comply with a wide range of employment and labor law standards.
True A business that hires an independent contractor generally is not required to comply with a wide range of employment and labor law standards that would apply were the worker an employee. Thus a business must provide, for example, unemployment insurance to its employees, but generally would not need to do so for independent contractors.
Employers will be held liable under the doctrine of respondeat superior for harm to third parties caused by the intentional or negligent acts of their employees when those acts occur within the scope of employment.
True Employers will be held liable under respondeat superior/vicarious liability reasoning for harm to third parties caused by the intentional or negligent acts of their employees when those acts occur within the scope of employment (on the job).
Employers who have contracts of $100,000 or more with the federal government or receive aid from the government must provide drug-free awareness programs for their employees.
True The Drug-Free Workplace Act of 1988 applies to employers who have contracts of $100,000 or more with the federal government or who receive aid from the government. Those employers are required to develop an antidrug policy for employees. They must provide drug-free awareness programs for employees, and they must acquaint employees with available assistance for those with drug problems, while also warning them of the penalties that accompany violation of the policy.
The federal government does not regulate private sector workplace drug testing.
True Drug testing is regulated primarily by state law so generalizations are difficult. A number of states forbid random drug testing or limit it to safety-sensitive situations.
Diane, a human resource manager at a multinational corporation, finds that one of the employees in the firm had misstated his education credentials. Diane can sue the employee for ________. A) résumé fraud B) invasion of privacy C) defamation D) collusion
A Diane can sue her employee for résumé fraud. A 2015 survey of more than 2,500 hiring managers revealed that 56 percent had uncovered a lie on a résumé, including exaggeration of job responsibilities and skills. About a quarter of the respondents had found applicants claiming to be currently with an employer for which they had never worked.
Which of the following has the authority to file discrimination lawsuits on behalf of employees despite an arbitration agreement? A) Equal Employment Opportunity Commission B) Pension Benefit Guaranty Corporation C) The United States Civil Service Commission D) The U.S. Securities and Exchange Commission
A In Nitro-Lift Technologies v. Howard, the U.S Supreme Court held that whether a restrictive covenant was enforceable was for the arbitrator to decide. However, the U.S. Equal Employment Opportunity Commission still retains authority to file discrimination lawsuits on behalf of employees despite an arbitration agreement.
Which of the following acts prohibits private individuals and organizations from intercepting wire and oral communications? A) The Electronic Communications Privacy Act B) The Uniform Electronic Transactions Act C) The Uniform Computer Information Transactions Act D) The Personal Information Protection and Electronic Documents Act
A In general, employers can lawfully monitor workers' attendance, performance, e-mail, use of the Internet, and so on, but uncertainty remains. The primary federal legislation, the 1986 Electronic Communications Privacy Act, prohibits private individuals and organizations from intercepting wire, oral, or electronic communications.
________ requires firms with 100 or more employees to provide 60 days' notice if they lay off one-third or more of their workers at any site employing at least 150 workers, drop 500 employees at any site, or close a plant employing at least 50 workers. A) The Worker Adjustment and Retraining Notification Act (WARN) B) The Consolidated Omnibus Budget Reconciliation Act (COBRA) C) The Sarbanes-Oxley Act (SOX) D) The Employee Retirement Income Security Act (ERISA)
A The Worker Adjustment and Retraining Notification Act (WARN) requires firms with 100 or more employees to provide 60 days' notice if they lay off one-third or more of their workers at any site employing at least 150 workers, drop 500 employees at any site, or close a plant employing at least 50 workers. A General Accounting Office study concluded, however, that the law had been ineffectual, with half of plant closings not covered by the law.
Which of the following statements is true of defined benefit pensions? A) They allow the employee's money to vest more quickly than defined contribution plans. B) They provide specified monthly payments upon retirement. C) They are less expensive to manage from the employer's perspective. D) They shift the risk from employer to employee.
B Broadly, pensions take two forms: defined benefit plans and defined contribution plans. Defined benefit pensions are of the traditional form providing specified monthly payments upon retirement.
________ is a free online system run by the federal government that determines an employee's eligibility to work in the United States. A) H-1B Status B) E-Verify C) I-9 Search D) USCIS Class
B E-Verify is a free online system run by the federal government that determines an employee's eligibility to work in the United States by comparing information reported on an employee's Form I-9 with federal records.
Which of the following statements is true of workers' compensation? A) Workers' compensation covers self-inflicted injuries. B) Workers' compensation provides a form of no-fault protection in the workplace. C) The system is governed by a federal board. D) Workers cannot sue for damages resulting from a work-related injury in any circumstances.
B In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment. Proof of employer negligence is not required, and the traditional defenses such as contributory negligence are not available to the employer. Thus, workers' compensation provides a form of no-fault protection in the workplace.
Which of the following is a condition required for a successful defamation suit against an employer? A) The statement should be true. B) A co-worker must be responsible for the publication of the statement. C) The statement must be "published" to a third party. D) The employer's reputation must be harmed.
C A successful defamation suit requires the following conditions: 1) A false statement; 2) The statement must be "published" to a third party; 3) The employer must be responsible for the publication; and 4) The plaintiff's reputation must be harmed.
Which of the following is a feature of the Americans with Disabilities Act (ADA)? A) It forbids unreasonable searches and seizures. B) It imposes a general duty on most employers to provide a workplace free of recognized hazards. C) It protects recovering drug addicts and those erroneously believed to be drug abusers. D) It provides rights to minimum wage and overtime pay.
C Drug testing could violate Title VII of the Civil Rights Act of 1964 or the Americans with Disabilities Act (see Chapter 13) if the testing fails to treat all individuals equally. The ADA protects recovering drug addicts and those erroneously believed to be drug abusers, but not employees or applicants who are currently abusing drugs.
Which of the following is a legal requirement for a workers' compensation claim? A) Lack of workplace safety standards B) Failure of employer-provided equipment C) Injury occurred during the course of employment D) Lack of employee training
C In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment. Workers' compensation provides a form of no-fault protection in the workplace.
Which of the following is a feature of the federal Consolidated Omnibus Budget Reconciliation Act (COBRA)? A) It provides rights to minimum wage and overtime pay. B) It imposes a general duty on most employers to provide a workplace free of "recognized hazards causing or likely to cause death or serious physical harm to employees." C) It requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months. D) It entitles eligible employees of covered employers to take job-protected, unpaid leave for certain family-related or medical reasons.
C The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months as long as they are not terminated for gross misconduct. Unfortunately, COBRA policies are often too expensive for workers who have lost their jobs.
Which of the following is a feature of the federal Employee Retirement Income Security Act (ERISA)? A) Employer contributions typically vest after one year. B) It requires employers to publish an annual report that has been certified by in-house counsel. C) It regulates pension funds to help reduce fraud and mismanagement and ensure long-term financial security. D) It abolishes the previous requirement that the federal government monitor all pension funds in excess of $100,000.
C The federal Employee Retirement Income Security Act (ERISA) regulates pension funds to help ensure their long-term financial security by reducing fraud and mismanagement. ERISA requires that fund managers keep detailed records, engage in prudent investments, and provide an annual report that has been certified by qualified, impartial third parties. ERISA also establishes strict vesting rights to ensure that employees actually receive the pensions to which they are entitled. Employer contributions typically vest after three years or in a six-year, graduated system.
Which of the following is an objective of the Fair Labor Standards Act? A) The establishment of a reasonable wage for all workers in the private sector B) Higher pay for female and minority workers C) Child labor protection D) The establishment of a minimum number of working hours per week
C The major objectives of the Fair Labor Standards Act (FLSA) are: 1) The establishment of a minimum wage that provides at least the foundation for a modest standard of living for employees; 2) A flexible ceiling on hours worked weekly, the purpose of which is to increase the number of employed Americans; 3) Child labor protection; and 4) Equal pay for equal work regardless of gender.
________ is a complete defense in defamation cases. A) Publication B) Reputation damage C) Truth D) Whistle-blowing
C Truth is a complete defense in defamation cases, and managers who offer factual, honest professional judgments are unlikely to face defamation claims. Further, many state courts provide the protection of a qualified privilege.
Respondeat superior is a form of ________ liability? A) qualified B) surrogate C) immunity D) vicarious
D An enterprise ordinarily will not be liable for the acts of its independent contractors. Employers, on the other hand, often bear legal responsibility for employees' accidents or wrongs. That liability may spring from the doctrine of respondeat superior (let the master answer), a form of vicarious liability (sometimes called imputed liability).
An at-will employee, by definition, is under contract for a definite period of time, and cannot be fired until the completion of the time period.
False An at-will employee, by definition, is not under contract for a definite period of time, and as such can be fired at any time. An increasing number of court decisions provide grounds for dismissed at-will employees to claim that they have been wrongfully discharged.
In seeking an H-1B visa, an employer must prove to the U.S. Department of Homeland Security that the hiring will not harm wages and working conditions of employees in similar jobs.
False Businesses in the United States have used the H-1B visa program to bring foreign workers to the United States to fill positions requiring special theoretical or technical expertise in specialized fields such as science, engineering, or computer programming. In seeking an H-1B visa, an employer must affirm to the U.S. Department of Labor that the hiring will not harm wages and working conditions of employees in similar jobs.
The Fair Labor Standards Act requires, among other things, payment of the federal minimum wage and overtime pay to independent contractors.
False Employees, unlike independent contractors, are protected by the Fair Labor Standards Act, which requires, among other things, the payment of the federal minimum wage and overtime pay.
Workers' compensation provides the only remedy available to workers injured on the job.
False In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment (explained next in Wait). Although workers' compensation is generally the exclusive remedy for workplace injury or death caused by employers' negligence, many states recognize an exception for intentional torts. An exception based on gross negligence, however, is rare. Proof of employer negligence is not required, and the traditional defenses such as contributory negligence are not available to the employer. Thus, workers' compensation provides a form of no-fault protection in the workplace.
Unemployment compensation benefits generally are available for a maximum period of 52 weeks.
False Rules vary by state, but in general, employees qualify for unemployment benefits by reaching a specified total of annual wages. Those people losing their jobs must apply to a state agency for unemployment compensation, which varies by state. Benefits may be collected up to a specified maximum period, usually 26 weeks. During that time, those collecting unemployment compensation must be ready to work and must make an effort to find suitable work.
With the prior consent by one of the parties to the communication, an employer may lawfully monitor an employee phone call.
True The primary federal legislation, the 1986 Electronic Communications Privacy Act, prohibits private individuals and organizations from intercepting wire, oral, or electronic communications. The act provides for two exceptions, however: (1) prior consent by one of the parties to the communication, and (2) employer monitoring in the "ordinary course of business" by telephone or other device furnished by a provider of wire or electronic communication service.
Which of the following acts imposes a general duty on most employers to provide a workplace free of "recognized hazards causing or likely to cause death or serious physical harm to employees"? A) The Occupational Safety and Health Act B) The Fair Labor Standards Act C) The Workplace Safety Act D) The Workers' Compensation Act
A A federal agency, the Occupational Safety and Health Administration (OSHA), is responsible for ensuring safe workplaces. The 1970 Occupational Safety and Health Act imposes a general duty on most employers to provide a workplace free of "recognized hazards causing or likely to cause death or serious physical harm to employees."
