chapter 21

What is the employment-at-will doctrine?

The common law doctrine that allows an employer or employee to terminate the employment relationship at any time, for any reason, with or without notice.

What are the two common exceptions to employment-at-will?

Existence of a written contract and violation of a federal or state statute.

What is the only common law exception to employment-at-will in Texas?

An employer cannot fire someone for refusing to commit an illegal act.

What is whistleblowing?

When an employee discloses illegal or unsafe activities of the employer to government authorities.

What law regulates minimum wage and overtime?

Fair Labor Standards Act (FLSA)

What is the current federal minimum wage?

$7.25 per hour

What is the FLSA’s rule on overtime pay?

Nonexempt employees must receive 1.5x regular rate for hours worked over 40 per week.

Does FLSA require daily overtime?

No, it is calculated weekly.

Name one group exempt from FLSA overtime provisions.

Executive, administrative, or professional employees.

What is the FLSA tip credit rule?

Employers may pay $2.13/hour in direct wages if tips bring total to minimum wage.

What are the child labor rules for kids under 14?

Limited to nonhazardous jobs like delivering newspapers, working for parents, or certain entertainment/agriculture jobs.

What is the WARN Act?

A law requiring 60 days’ notice before mass layoffs or plant closings for companies with 100+ full-time employees.

What does FMLA stand for?

Family and Medical Leave Act

What are the FMLA eligibility requirements?

12 months of employment and 1,250 hours worked in the past 12 months.

What protections does FMLA provide?

Up to 12 weeks unpaid leave for family/medical reasons with job and health insurance protection.

What is OSHA?

Occupational Safety and Health Administration; sets and enforces workplace safety standards.

When must OSHA be notified?

Within 8 hours of death, 24 hours for hospitalization, amputation, or eye loss.

What does workers’ comp cover?

Compensation for employees injured on the job, regardless of fault.

Does Texas require employers to have workers' comp insurance?

No, but most employers carry it to avoid lawsuits.

What does the Social Security Act provide?

Retirement, disability, and survivor benefits for qualified workers.

At what age is Medicare available?

65 and older, or under 65 with certain disabilities.

What is a defined benefit plan?

A pension plan with a guaranteed monthly retirement benefit.

What is a defined contribution plan?

A retirement plan like a 401(k) where benefits depend on contributions and investment performance.

What law regulates private retirement plans?

ERISA – Employee Retirement Income Security Act

How long until employer contributions must vest under ERISA?

Fully after 3 years, or gradually over 6 years.

What law created unemployment insurance?

Federal Unemployment Tax Act (FUTA)

What disqualifies someone from unemployment benefits?

Misconduct or voluntarily quitting without good cause.

What is COBRA?

A law allowing continuation of health insurance after employment ends, at the employee’s expense.

How long does COBRA coverage last?

18 months, or 29 months if disabled.

What does the Affordable Care Act require of large employers?

To provide affordable health insurance or face penalties.

What does the ECPA prohibit?

Intercepting employee communications unless on employer-provided systems.

Are employers allowed to drug test employees?

Yes, subject to state law; the Fourth Amendment does not apply to private employers.

What does the Employee Polygraph Protection Act do?

Generally prohibits lie detector tests in private employment.