Chapter 15

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The Ugly Side of Beautiful Nails

1.Figure 15.1 describes several "workplace rights." Which of these rights are violated in the nail salon industry, and what evidence do you have of this? ● 2. To what degree do you think managers in the nail salon industry would be able to improve conditions voluntarily if they wished to do so, and why do you think so? ● 3.What factors make it particularly difficult for workers in the nail industry to organize to improve their own conditions, and how could these factors be overcome? ● 4.What factors make it particularly difficult for government policy makers and regulators to make rules for the nail industry and enforce them? How could these factors be overcome? ● 5.What do you think is the best way to improve conditions for workers in the nail industry? ●

Privacy in the Workplace

An important right in the workplace as elsewhere, is privacy. Privacy rights: primarily protecting an individual's personal life from an unwarranted intrusion by the employer. Key workplace issues where privacy dilemmas often emerge include electronic monitoring, office romance, drug and alcohol abuse, and honesty testing.

The Right to Safe and Healthy Workplace

Annually, slightly more than 3 million workers in private industry are injured or become ill while on the job (U.S. Department of Labor). Occupational Safety and Health Act, passed in 1970, gives workers the right to a job "free from recognized hazards that are causing or likely to cause death or serious physical harm." •This law is administered by the Occupational Health and Safety Administration (OSHA). •Since the agency's creation in 1970 the overall workplace death rate has fallen by more than two-thirds.

Right to Organize and Bargain Collectively1

Employees have a fundamental legal right to organize labor unions and to bargain collectively with employers. •Workers have a right to hold an election to decide which union will represent them. Labor unions: Organizations that represent workers on the job. Labor unions have the right to negotiate wages, working conditions, and other terms of employment. •Employers are required to bargain with unions in good faith. •If agreement cannot be reached, a strike might occur.

Whistle-blowing and Free Speech in the Workplace3

Four conditions must be satisfied to justify whistle-blowing: •Organization is doing (or will do) something that seriously harms others. •Employee has tried and failed to resolve the problem internally. •Reporting the problem publicly will probably stop or prevent the harm. •The harm is serious enough to justify the probable costs of disclosure to the whistle-blower.

Whistle-blowing and Free Speech in the Workplace1

Free speech in the workplace: •U.S. Constitution protects free speech; however, does not specifically protect freedom of expression in the workplace. •Employees are not generally allowed to speak out against their employers, due to legitimate interests of the business.

Whistle-blowing - Laws

Sarbanes-Oxley Act, passed in 2002: •Makes it illegal for employers to retaliate in any way against whistle-blowers who report information that could have and impact on the value of a company's shares. Dodd-Frank Act of 2010: •Requires the government to pay a reward to whistle-blowers who voluntarily provide information that leads to successful prosecutions for violations of federal securities laws. U.S. False Claims Act 1986 (Lincoln Law): •Allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government.

Job Security and the Right to Due Process1

Since late 1800s, the legal basis for the employment relationship has been employment-at-will. Employment-at-will is a legal doctrine that means employees are hired and retain their jobs "at the will of" (i.e. at the sole discretion of) the employer. However, equal employment opportunity and other laws prevent discriminatory terminations.

Wages and Income Inequality2

What can companies do to address income inequality? •Increase wages of their employees. •Reduce pay differentials within their organizations. •Living wage: Wage "that enables workers, for their labor during a standard work week, to support half the basic needs of an average-sized family, based on local prices near the workplace" (Ethical Trading Initiative). •Companies that adopt such a "good jobs" strategy reap benefits from doing so.

Whistle-blowing:

when an employee believes his/her employer has done something that is wrong or harmful to the public, and he/she reports the alleged misconduct to the media, government, or high-level company officials.


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