AL

Checking, Employment and Labor Law

CHECKING:

Bouncing a Check

  • check written for an amount over the current balance held in the account

    • “bounces” due to insufficient funds, or not enough money in the account to cover the check written

  • overdraft protection

  • fee will be charged to the account holder

  • harm future opportunities for credit

Other Checking Components

  • Checking Account Register

    • Place to immediately record all monetary transactions for a checking account

      • written checks, ATM withdrawals, debit card purchases, deposits, and additional bank fees

    • Checkbook: contains the checks and the register to track monetary transactions

    • Routing Number: a nine-digit number used to identify a financial institution in a transaction

    • Negotiable Instrument (Commerical Paper): a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

Bank Endorsement

  • Signature on the back of a check to approve it to be deposited/cashed

    • a check MUST be endorsed to be deposited

    • anyone can deposit the check after it has been signed

  • Restrictive Endorsement: more secure than blank endorsement

  • Special Endorsement: the receiver signs and writes “pay to the order of ___”

    • allows checks to be transferred to a second party

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EMPLOYMENT AND LABOR LAW

Employment “at will”

  • unless there is a contract, the employer can terminate an employment contract for any reason or no reason at all

  • the general will that an employer can fire an employee for any reason at any time

    • no protection on discriminatory practices

Creation of Employment Contracts

  • employment: a legal relationship based on a contract, performance-based

    • employee - does work for exchange of agreement

    • employer - pays for the work

  • employment law: division of law that governs the relationship between employer and employee

    • stems from forms of law: tort, criminal, contract, labor

  • independent contractor: self-employed, not subject to company control

    • aka 1099: files own taxes, pays quarterly taxes with an attorney based on income

    • provides own benefits

Express Agreement

  • detailed written/oral agreement

  • describes all elements of the employment relationship (hours, pay, benefits, responsibilities, etc.)

  • they specify the exact length of time employment will take place

  • benefits: guaranteed a time for payment, guaranteed “pay” level that is contractual to, guaranteed benefits

Implied Agreement

  • when an employer's personnel policies or handbooks indicate that an employee will not be fired except for good cause or specify a procedural process for firing

  • “open-ended” as to the time a person will have a job (no end time for employment)

  • a person can quit a job any time they want/be fired for any reason

  • benefits: “free agent” all the time, payment on day to day

  • detriments: no job security, hours are not guaranteed, benefits are solely based on hours

How does the law affect contracts?nhn

  • sets guidelines for all agreements

  • each state can be different

  • minimum wage rules, overtime rules, health insurance

  • federal law discrimination with 15+ employees

  • employee benefits with 50+ employees

Exceptions to At-Will Employment

  1. Public Policy

    • employer cannot fire a worker for a reason that would violate basic social rights

      • jury duty

  2. Implied Contract

  3. Contract Term

  4. Doctrine of Promissory Estoppel

  5. Exceptions defined by statutes

    • Worker Adjustment and Retraining Notification (WARN)

Workers’ Compensation Insurance (Claim)

  • state-mandated insurance is provided to workers to defray the loss of income and cost of treatment due to work-related injuries or illness

  • construction worker followed laws

    • injury needs to be related to the work site

      • if yes, will receive workers’ compensation

      • barred from suing and receiving compensation in the future

    • if an employer wants to sue for loss of work and a compensation claim filed, they CANNOT

Constructive Discharge

  • wrongful discharge claim when an employee makes the decision to quit and there is no actual discharge by the employer

    • job is so miserable → impossible to succeed

  • involuntary act: occurs when an employee has no reasonable alternative but to terminate employment

    • test: employer made working conditions so intolerable that no reasonable person could be expected to endure

OSHA: Occupational Safety and Health Act

  • a government agency in the Department of Labor to maintain a safe and healthy work environment

  • establishes workplace safety standards that employers undertake specific precautions to ensure the workplace is free of hazards; permanent injury/death violators may be fined up to $7k per day

    • maritime, construction, food/services, manufacturing

Title VII Civil Rights Act

  • employment section

    • race, color, ethnicity, gender, marital status, national origin, religion

  • business necessity defense: An affirmative defense under Title VII of the Civil Rights Act. It is raised to disparate impact claims and asserts that a facially neutral but discriminatory policy is job related.

Discrimination

  • laws seek to prevent discrimination based on race, sex, sexual orientation, religion, national origin, physical disability, and age by employers - practices include bias in hiring, promotion, job assignment, termination, compensation, retaliation, and various types of harassment- laws consists of federal and state statutes

  • Bona Fide Occupational Qualification (BFOQ): an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business." strictly monitored by the Equal Employment Opportunity Commission

Age Discrimination in Employment Act

  • prohibits discern workers over 40 years old

  • public or private employees 20+

Disabilities Act with Americans

  • public

  • private 15+

  • protects those with disabilities associated with physical/mental/history of/ regarded as having

  • relation to someone with a disability

Fair Labor Standards Act

  • 1938 Act which provided for a minimum wage and restricted shipments of goods produced with child labor

  • aka wage and hour act

    • not salary

  • does not apply to minimum wage or overtime pay of professional workers

  • prohibits apprehensive child labor

Immigration Reform and Control Act of 1986

  • illegal to hire an illegal immigrant who doesn’t have authorization to work in the US

  • employees are subject to fines, convictions, and arrests

  • state by state law regarding allowing employers to hire

Family and Medical Leave Act

  • Federal law requires organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or an employee's serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty

  • allows eligible employees with unpaid, job-protected leave (12 weeks) for certain family or medical conditions

    • job has to be available when the employee returns to work

    • job reinstatement, compensatory damages, protection if FMLA is disobeyed by the employer

Harassment

  • a form of employment discrimination that violates Title VII of the Civil Rights Act of 1964, the Age Discrimination Employment Act of 1967, and the Americans with Disabilities Act of 1990

  • repeated behavior that torments, troubles, worries, humiliates, and/or threatens another

  • sexual harassment/quid pro quo: employment outcomes depend on whether an individual submits to sexual harassment

    • doing something in exchange for something else; abuse of power

  • hostile work environment: a form of sexual harassment deriving from off-color jokes, lewd comments, and so forth

Medicare: A federal program of health insurance for persons 65 years of age and older, and some under 65 years with certain disabilities/conditions

Medicaid: A federal and state assistance program that pays for health care services for people who cannot afford them

FICA

  • US payroll tax levied on both employers and employees to pay for Social Security and medical programs

  • FICA taxes: Based on the Federal Insurance Contributions Act; tax withheld from employees' paychecks and matched by employers for Social Security and Medicare

Social Security

  • the federal program of disability and retirement benefits that cover most working people

  • source of income when you retire or if you cannot work due to disability or retirement

Disparate-Impact: occurs when a protected group of people is adversely affected by an employer's practices, procedures, or tests, even though they do not appear to be discriminatory

Just Cause: One of the parties to the contract did not perform what it was expected to do under the terms of the contract

Duty Of Employees

  • Duty of Reasonable Performance: requires the employee to perform assigned duties at the prescribed time and in the prescribed manner

  • Duty of Obedience: requires the employee to follow the reasonable orders and rules of the employer; requires agent to carefully obey the instructions of the principal

  • Duty of Reasonable Skill: requires that those who accept work possess the skill, experience, or knowledge necessary to do it