Ch. 8 Workplace Law and Ethics (definitions)

Equal Pay Act of 1963 p. 204

Makes it illegal for an employer to discriminate on the basis of gender in the payment of men and women who are doing the same job.

Ethnocentric p. 189

a belief that one's cultural background is better than any other

Employment-at-will p. 195

a common-law doctrine of employment that takes place at either the will of the employer or the employee when a contract is not present. Employment may be terminated at will, without notice, at any time,and without a reason. An employee may quit at any time. The only protection is that employees cannot be fired for an illegal reason (race, religion, etc.) This does not apply if there is a contract between the employer and employee that defines the duration of the employment. This concept is beginning to lose favor as wrongful-discharge lawsuits rise.

Vesting p. 206

a point in time, such as after 10 years of employment, when an employee has the right to receive benefits from a retirement plan.

Emergency Medical Treatment and Active Labor Act (EMTALA) p. 207

a section of COBRA dealing with patient dumping. • Patients must be stabilized before transfer or sent to a regional trauma center if they cannot be stabilized • A person reporting patient dumping may not be peanalized • Hospitals can be fined or have their Medicare agreements dropped • The patient can sue the hospital • A physician can be penalized if he/she misrepresents a patient's condition • EMTALA does not apply to HMOs, private clinics, or private phusician's offices.

Patient dumping p. 207

a slang term for transferring patients from one hospital to another if the patient is unable to pay for services.

Family and Medical Leave Act (FMLA) of 1994 p. 206

allows both the mother and the father to take a leave of absence for up to 12 weeks, in any 12-month period, when a baby is born. • The employees job, or an equivalent position, must be held. • In most cases the leave is without pay. • FMLA also allows an employee to take 12 weeks for a family members medical situation (birth, death, adoption). • The employees heath coverage must be maintained • Accumulated employee benefits cannot be lost

Equal Employment Opportunity Act (EEOA) of 1972 p. 193 & 197

authorizes the EEOC to sue employers in federal court on behalf of people whose rights have been violated under Title VII.

Garnishment p. 209

court order that requires an employer to pay a portion of an employee's paycheck to one of the employee's creditors until the debt is resolved.

Bloodborne pathogens p. 200

disease-producing microorganisms transmitted by means of blood and body fluids containing blood.

Drug Free Workplace Act of 1988 p. 203

employers contracting to provide goods or services federal government must certify that they maintain a drug free workplace. • Drug-using employees are expensive in terms of decreased productivity, workplace, accidents, and increased healthcare costs. • To prevent abuse some organizations require drug testing as a condition of employment.

Pregnancy Discrimination Act of 1978 p. 197

employers must treat pregnant women as they would any other employee, providing they can still do the job. • An employer cannot force a woman to quit her job because she is pregnant • A woman cannot be refused a job because she has had an abortion • The employer's medical plan must cover pregnancy the same way it covers medical conditions. • The woman is entitled to sick leave the same as other employees

Clinical Laboratory Improvement Act (CLIA) p. 202

established minimum quality standards for laboratories. • The federal government requires all clinical laboratories that test human specimens must be controlled. • 1992 - mandate written policies and procedures for a comprehensive quality assurance program • most tests are regulated except simple ones that would not negatively impact a patient if the result were erroneous • The FDA is responsible for categorizing the tests and allowing the waiver of testing • Tests performed at home are general waived but the manufacturer must request the waiver • Tests that use a microscope, calculations, or a judgement call are not waived • A complete list of waived tests is on hcfa.gov/medicaid/clia and www.cola.org

Fair Credit Reporting Act of 1971 p. 207

establishes guidelines for use of an individual's credit information • If a patient is denied credit based on a poor credit rating from a credit agency, the patient must be notified of this fact and given the name and address of the reporting agency. • The agency must disclose the information to the consumer and correct any outdated or erroneous information.

Fair Labor Standards Act (FLSA) p. 205

establishes the minimum wage, requires payment for overtime work, and sets the maximum hours employees covered by the act may work. • This is the main statute regulating employee benefits. • Over time must be provided at time and a half if over 40 hours are worked each week • Hospitals are an exception when they make an agreement with their employed to establish a work period of 14 days. Overtime then starts at 80 hours. • This law affects only full-time, hourly employees. • Salaried, management, part-timers, and time-sharers usually do not benefit from this law.

Social Security Act of 1935 p. 203

federal law that covers all private and most public sector employees. • This act laid the groundwork for unemployment compensation in the United States. • Social Security is paid by the employer and the employee in equal payroll taxes and Medicare participant premiums. • Social Security is composed of different but related programs: - retirement - disability - dependent - survivor's - Medicare health benefits • The amount paid to the beneficiary is calculated based on the worker's average wages earned during his/her working lifetime.

Autonomy p. 190

independence. As long as a person is competent, he or she has the right to make their own decisions. Bioethical and legal issues arise when a person is called upon to make decisions based upon his or her own religious beliefs, for another person such as a child or incompetent adult. Guardianship may have to be established by the courts so the best interested of the patient are observed.

Wrongful discharge p. 195

lawsuit in which the employee believes the employer does not have a just cause, or legal reason, for the firing.

Just cause p. 195

legal reason.

Parenteral p. 200

medication route other than the alimentary canal (oral and rectal), including subcutaneous, intravenous, and intramuscular routes.

Equal Employment Opportunity Commission (EEOC) p. 193

monitors Title VII of the Civil Rights Act. It has strict guidelines on the types of questions that can be asked during a job interview. • EEOC monitors Title VII and the Justice Department enforces the statute.

Stereotyping p. 189

negative generalities concerning specific characteristics about a group are applied to an entire population.

Consolidated Omnibus Budget Reconciliation Act (COBRA) p. 203

offers government financing for health insurance coverage continuation after an employee has been laid off a job. • This is an important act because it has helped decrease the number of uninsured Americans. • A company with 25 or more employees must provide extended healthcare insurance to terminated employees for up to 18 months - usually at the employee's expense. • COBRA also contains an amendment called EMTALA which prohibits "patient dumping"

Preempt p. 194

overrule.

Civil Rights Act of 1991 p. 191 & 196

permits the court to award both compensatory damages and punitive damages to mistreated employees. • Prior to this amendment only compensatory damages were awarded • Wrongful discharge suits fall under this law. • Hospitals cannot discriminate against employees and employees cannot discriminate against patients.

Creditor p. 209

person or institution to whom a debt is owed.

Debtor p. 209

person who owes money to another person.

Equal Credit Opportunity Act of 1975 p. 207

prohibits businesses (including hospitals) from granting credit based on race and gender—unfair treatment is referred to as discrimination.

Title VII of the Civil Rights Act p. 195

prohibits discrimination in employment based on five criteria: race, color, religion, gender, or national origin. • This proposal from the Kennedy administration is considered one of the most important pieces of all legislation. • This act applies to all organizations that have 20 or more employees working 20 or more weeks a year. • Some of the most frequent violations in the healthcare employment field are related to Title VII issues. • Title VII also makes sexual harassment a form of unlawful sex discrimination.

National Labor Relations Act of 1935 or The Wagner Act p. 199

prohibits employer actions, such as attempting to force employees to stay out of unions, and labels these actions as "unfair labor practices."

Rehabilitation Act of 1973 p. 198

prohibits employers from discriminating against the handicapped. • This act prohibits discrimination based on disability in any institution that receives federal financial assistance. (e.g., a hospital that receives Medicare or Medicaid reimbursement must comply with this law). • This act had a major influence on the Americans with Disabilities Act of 1990 because it included a broad definition of "handicapped" (people with physical or mental impalement) • This act give legal basis for claims challenging denial for employment because of physical or mental reasons.

Americans with Disabilities Act (ADA) of 1973 p. 198

prohibits employers who have more than 15 employees from discriminating against disabled individuals. • There are 43 million disabled persons in the U.S. • Persons with AIDS are also covered under this act. • Employers must make reasonable accommodations to make the work environment accessible to their disabled employees. • Exceptions occur if making the accommodations would put undue hardship for the employer. • The vagueness of term "undue hardship" has caused problems interpreting this law. • Employers have a 2 years to implement the accommodations. • Patients are also protected under this statute.

Fair Debt Collection Practices Act of 1987 p. 208

prohibits unfair collection practices by creditors. • The FCC issued guidelines for specific times that credit collection phone calls can be made (8 a.m. - 9 p.m.) • It prohibits harassment and threats • Guidelines on page 209 • Billing and collections personnel must have a full understanding of the laws regulating the collection process

Age Discrimination in Employment Act (ADEA) of 1967 p. 197

protects persons 40 years or older against employment discrimination because of age. • Applies to employers who have 20 or more employees. • Does not apply if the older employee does not have the ability to perform the job • The employer must be able to show in writing why the younger job applicant was hired over the older one. • Mandatory retirement is prohibited under this law except for certain exempt executives. • People over 40 are protected by ADEA and Title VII.

Worker's Compensation Act p. 205

protects workers and their families from financial problems resulting from unemployment related injury, disease, and death. • Employers typically pay into a fund to help cover costs when a worker is hurt during the course of employment. • The goal of worker's compensation is to get the worker pack to work as soon as possible. • COBRA may allow for a retraining opportunity if the injury results in permanent inability to work the same job • If the employee has only worked at the job a few months, the former employer may have to pay worker's compensation. • Some medical practices specialize in worker's compensation cases • Worker's Compensation is completely administered at the state level • The employee must submit written notice of the injury to the employer • Worker's Compensation pays a fraction of the normal salary, such as 2/3. • Available even if the employee is at fault for the injury, except employees who violate hospital policy • An employee who is injured by a nonemployee can collect Workman's Compensation and sue the nonemployee for damages.

Unemployment Compensation p. 205

provides for temporary weekly payments for the unemployed worker who lose their job through no fault of their own. • In order to receive unemployment insurance, the employee must have worked for an employer who has paid, or was required to pay, unemployment compensation taxes. • Exemptions apply for religious, educational, or charitable organizations. • Employees who are fired for a good cause cannot collect unemployment benefits.

Employee Retirement Income Security Act (ERISA) p. 194 & 206

regulates employee benefits and pension plans. • ERISA requires employers to earmark money that can only be used to pay future benefits. • Guarantees vesting of pension plans • Under ERISA, employees who stay with a company for 10 years are entitled to 50 percent of the employer's retirement plan even if they leave the company and take another job. • The employee is entitled to 100% of the employer's pension contribution after fifteen years of employment when he or she becomes fully vested. • ERISA protects employees from being laid off just before they become vested.

Truth in Lending Act (Regulation Z) of 1969 or Regulation Z of the Consumer Protection Act p. 207

requires a full written disclosure about interest rates or finance charges concerning the payment of any fee that will be collected in more than four installments. • Installment payments are often used for orthodontia, obstetrical care, and surgical treatment. • It is legal to include a finance charge, however, few physicians and dentists require the charge.

Occupational Safety and Health Act (OSHA) of 1970 p. 200

requires an employer to provide a safe and healthy work environment; the employer must protect the worker against hazards. • OSHA regulations preempt all other state and local regulations regarding employee safety and health, meaning that states may not pass any laws concerning the working environment. • Right-to-know laws • Employers and office managers should become familiar with OSHA regulations as they apply to their specific fields. This protects employees and avoids fines for OSHA violations which can be severe. • Poor publicity from OSHA violations can damage an office or company's reputation. • It is better to err on the side of being to cautious when implementing OSHA regulations.

Federal Insurance Contribution Act (FICA) of 1935 p. 205

requires employers to contribute to Social Security for employees. • The oldest act relating to compensation. • Employers are required to contribute to Social Security plans for their employees. • Severe fines ensue if the employer does not pay on time. • Detailed documentation of the employer's payments are necessary

Federal Wage Garnishment Law p. 209

restricts the amount of the paycheck that can be garnished to pay off a debt.

Affirmative action programs p. 196

to remedy discriminating practices in hiring minority group members. Also covered under Title VII. Courts may mandate that affirmative action programs be implemented if there is evidence that an employer has intentionally discriminated against a particular minority group.

Bias p. 189

unfair dislike or preference for something.

Discrimination p. 195

unfair or unequal treatment.