Chapter 17

Wages and Hours

- In 2016, FLSA minimum wage is $7.25 per hour in covered industries. Employers in food or lodging industries can deduct reasonable cost of those services from wages. - In 2016, minimum wage on federal contracts is $10.15 per hour (Davis Bacon Act).

Employee Retirement Income Security Act (ERISA)

- created the pension benefit guaranty corporation (PBGC) to provide timely and uninterrupted payment of voluntary private pension benefits. - ERISA does not require employers to setup pension plans, but provides rules on management and investment

Violation of FMLA

- damages to compensate an employee for lost benefits, denied compensation, and actual monetary losses - job reinstatement - promotion, if promotion has been denied

Medicare

- federal government health-insurance program for people 65 years of age, and for those under 65 who are disabled

other types of monitoring

- lie detector tests: employers are generally prohibited from conducting - drug testing: generally allowed - genetic testing: not to be used for employment decisions

Affordable Care Act (ACA)

- most employers with 50 or more full-time employees are required to offer health insurance benefits - required employers who do not offer benefits or who offer plans that are too expensive are subject to penalties

Union Elections

- must represent an "appropriate bargaining unit" having similarity of jobs and physical location - an election can be held only if at least 30% of the workers will be represented

Social Security

- portion of income (whether paycheck or self-employed) goes to FICA (Federal Insurance Contributions Act) - retired workers receive monthly payments

collective bargaining

- process by which management and labor negotiate the terms and conditions of employment - both labor and management must bargain in good faith, but the law does not require that they reach an agreement

COBRA

- provides a federal right to continued health insurance - worker has 60 days to decide - COBRA is not free, payments depend on conditions and worker status.

Employment At Will

either party can end the relationship at any time and for any reason

Employee privacy protection

employers can monitor employees in the workplace

The Fair Labor Standards Act (FLSA)

extends wage-hour requirements to cover all employers engaged in interstate commerce

The Occupational Safety and Health Act (OSHA)

federal law aimed toward safety in the workplace

contract theory

if a contract exists, whether express or implied, that will control the employment arrangement.

reasonable expectation of privacy

if employees are informed that they will be monitored, there is no reasonable expectation of privacy.

wrongful discharge

if the employer terminates the employee in violation of statute or contract, a claim for wrongful discharge can be brought

public policy

whistleblowing, for example

Family Medical Leave Act (FMLA)

- requires employers with over 50 employees to provide 12 weeks unpaid leave to employees who need to care for a spouse, child, or parent suffering with a serious medical condition - serious injuries or military duty can take up to 26 weeks

Strikes

- unionized workers leave their jobs and refuse to work - The NLRA guarantees the right to strike and not cross picket lines - employers may hire replacements - if the employer has not hired replacements, then it must rehire the strikers after the strike ends.

Preliminary Union Organization

- workers sign authorization cards - cards can justify an election

Worker Adjustment and Retraining Notification (WARN) Act

60-day notice before a mass layoff during 30-day period, which results in workforce loss of: - at least 33% or 50 or more full time employees at a single job site - at least 500 full time employees

State Workers' Compensation Laws

Establish an administrative procedure for compensating workers injured on the job

Child labor

FLSA prohibits oppressive child labor practices

Jane, Jim, Samuel & Rick are employees at will, last week the following happened: • Jane's boss finds out she is gay • Jim wore a Hillary for President Shirt on the weekend while not on duty, his boss saw him • Samuel did not work because he had Jury Duty • Rick has a bumper sticker on his pickup that states "Trump for President" Jane, Jim, Samuel & Rick are each fired for the reasons above. Which person has the best claim for wrongful termination?

Samual

exceptions to employment at will

contract theory, tort theory, and public policy

Jim, a salaried manager works 50 hours during a workweek. Jim believes he is entitled to overtime compensation. Is Jim correct?

no

Unemployment Insurance

provides payments to qualified people who have lost their jobs

The Davis Bacon Act

requires contractors and subcontractors working on federal government construction projects to pay "prevailing wages" to their employees

The Walsh Healey Act

requires minimum wage and overtime be paid to employees of federal government contracts

tort theory

termination could lead to a wrongful discharge claim

overtime exemptions

under the FLSA, employees who work over 40 hours per week are entitled to 1.5 times the hourly wage for those hours worked. Exemptions: - administrative employees that are paid a salary and related to general business operations - executive employees whose primary duty is management