Chapter 25 Business Law

what was the objective of early employment statutes in England and the United States?

control and restrict workers.

why were laws to protect works originally deemed unconstitutional?

they were interpreted as interfering with freedom of contract as guaranteed by the Due Process Clause

fellow-servant rule

This rule declared that if the injury was the result of negligence by another worker, the employer had no liability.

when did most states enacted workers’ compensation laws?

between 1917 and 1925

what do employees give up their right to sue employers in WC in exchange for?

the high probability of recovering for their injuries without the cost, hassle, or delay of a lawsuit.

what do employers give up their right to assert traditional negligence defenses in WC in exchange for?

more certain, limited payments for employee injuries and protection against liability for punitive damages and emotional damages

what do WC statutes require employers furnish employees with during disability?

medical treatment and a fixed level of income

what portion of wages are required by WC statutes?

two-thirds up to a maximum

what are 3 ways worker’s comp payments are funded?

employer contributions to a state fund, insurance purchased by employers, or through self-insurance by large employers

what kinds of employers can be excluded from WC?

employers with three or less employees, farming, charitable organizations, and household service

what does it mean that injury must occur in the course of employment?

employee must be injured while they are at work

what does it mean that the injury must arise out of employment?

injury must be related to the type of employment involved

Occupational Safety and Health Act of 1970

first federal safety statute that applied to all types of businesses

who enforces the occupational safety & health act on employers?

Occupational Safety and Health Administration (OSHA)

what duty does OSHA impose on employers?

general duty on covered employers to prevent workplace hazards that pose a risk of death or serious physical harm.

within what time frame are employers are required to report on-the-job fatalities and injuries that require hospitalization?

48 hours

What happens if OSHA inspectors do a random search an the employer objects?

a search warrant must be obtained.

what are the 3 cases why OSHA inspections usually happen?

after fatalities, worker complaints, and occasionally randomly

what is The Family and Medical Leave Act (FMLA) designed to do?

provide job security to employees with serious health conditions as well as to provide reasonable leaves of absence to deal with family-related health issues.

what are Employers with 50 or more employees are required to do under FMLA?

give covered employees up to 12 unpaid workweeks of leave per year to deal with the care of themselves, a child, a spouse, or a parent with a serious health condition

what does Public Law 99-272 continue (for health insurance)

the availability of health care insurance at the employer’s group rate to certain terminated employees and their families for up to 36 months

What does the Fair Labor Standards Act (FLSA) require of employers?

to pay their employees a minimum hourly wage and to pay hourly workers time and a half for hours worked in excess of 40 in one week.

what does it take for an employee to be exempt from FLSA?

one’s primary duty must be to manage a business or a recognized subdivision

Garnishment

a court order that makes money or property held by a debtor (the garnishee) subject to the claim of a creditor.

what is the Employment Retirement Income Security Act (ERISA) designed to prevent?

problems such as underfunding, dishonest or careless management of funds, and the loss of benefits by long-term employees who change employers, who are fired, or whose employers go out of business

when do pension funds vest?

when the employee’s legal right to the funds cannot be taken away.

what has ERISA been interpreted?

to limit employer discretion and state regulation regarding such benefits.

why was the Pension Protection Act of 2006 (PPA) passed?

to reform the rules for funding defined benefit pension plans

what was the first recorded organized action by workers in America?

strike for a $6 weekly wage by printers in Philadelphia in 1786

what did the employment-at-will doctrine allow employers to do initially?

fire and blacklist pro-union employees

Norris–LaGuardia Act prohibited what?

federal courts from issuing injunctions against lawful strikes, picketing, and certain other activities, + prohibited enforcement of yellow-dog contracts

The right of workers to organize and bargain collectively was expressly recognized in what act?

National Labor Relations Act (Wagner Act) of 1935

what board did the Wagner Act establish to administer it?

National Labor Relations Board (NLRB)

what are the NLRB’s primary functions?

conduct elections for employees to decide whether to form a union and to hear charges of unfair labor practices.

how is the bargaining unit formed?

The board determines what group of employees will be allowed to vote

what was the Taft–Hartley Act or Labor–Management Relations Act (LMRA) passed to limit?

excessive power of unions; gives the NLRB jurisdiction over businesses that have an appreciable impact on interstate commerce

what kind of employees are excluded from the Taft-Harley Act?

federal, state, and local government employees, agricultural laborers, household employees

hot-cargo agreements

agreement between employer and union that the employer will refrain from dealing in the products of another employer who is considered to be unfair to the union.

what happens during the 80-day “cooling-off ” period in strikes?

employees must return to work or continue working.

when does a lockout occur?

when the employer discontinues operations during a labor dispute.

Equal Pay Act

prohibits sex discrimination in pay

what did the Lilly Ledbetter Act (of civil rights) change?

employees can assert claims for pay discrimination that dates back longer than six months.

intentional discrimination

disparate treatment

discriminatory effect

disparate impact

quid pro quo harassment

express or implied connection between the employee’s submission to sexually oriented behavior and job benefits

hostile work environment

harassment is so severe or pervasive that a reasonable person would consider it hostile or abusive).

Where a supervisor harasses a subordinate, the employer is automatically liable if the victim has suffered

a tangible job detriment

employer will be liable for actions of harassment unless it can prove what two things?

it took reasonable steps to prevent and promptly correct the harassment; the victim unreasonably failed to take advantage of preventive or corrective measures provided

when is discrimination based on religion, sex, or national origin is permitted?

when they are a bona fide occupational qualification (BFOQ)

affirmative action

refers to plans for increasing the proportion of minorities or women in an employer’s workforce or in higher-level positions.

what are the 3 requirements on affirmative action?

must be temporary, must not unduly restrict the job opportunities of those not included, and must not involve the hiring or promotion of unqualified workers.

why does the EEOC object to mandatory binding arbitration as a condition of employment?

it denies employees the right to bring independent discrimination claims

the Age Discrimination in Employment Act (ADEA) prohibits what?

employers with 20 or more employees from discriminating against employees who are 40+

what are the 3 ways a disability is defined according to the ADA?

a physical or mental impairment that substantially limits one or more of a person’s major life activities; a record of such an impairment; being regarded as having such an impairment

what does reasonable accommodation involve?

a determination of what the employer can do to enable the person with a disability to perform the job without undue hardship to the employer.

what does the Genetic Information Nondiscrimination Act (GINA) prohibit?

employers, unions, and employment agencies from collecting genetic information of employees or applicants or from requiring genetic tests.

what 3 theories have courts used to curb employment at will abuse by employers?

the firing is against public policy, the firing is in violation of implied terms of the employment contract, the firing violates an implied covenant of good faith and fair dealing

whistleblowing

employees who report employer wrongdoing to appropriate agencies