NO NOTES - FA 2024 BLW Cpt 30 and 31

Chapter Overview

Section 6: Chapters 30 and 31

This section discusses various business entities and the significant employment discrimination laws that govern them.

Business Structures

Types of Business Entities

1. Sole Proprietorships

   • An unincorporated business owned and managed by one individual, who is personally liable for all business debts and obligations.

   • Advantages include complete control over business decisions and simplicity in tax filing, as income is reported on the owner’s personal tax return.

   • Disadvantages include unlimited personal liability and limited ability to raise capital.

2. Corporations

   • A separate legal entity owned by shareholders, providing limited liability protection to its owners.

   • Can be taxed as C Corporations (standard corporate tax) or S Corporations (income passes through to shareholders).

   • Required to hold regular meetings and maintain corporate formalities.

3. Special Types of Corporations

   • S Corporations: Designed for small businesses looking for tax benefits; allows profits and losses to pass through directly to shareholders avoiding double taxation.

   • Close Corporations: Limited to a small number of shareholders and often not traded publicly, providing more control and management flexibility with restrictions on share transfers.

4. Limited Liability Company (LLC)

   • Combines aspects of corporations and partnerships, offering limited liability to its owners and flexible management structures.

   • No mandatory annual meetings or formalities required, making it easier to operate.

   • Profits can be distributed as per the members’ discretion, providing tax benefits similar to partnerships.

5. General Partnerships

   • Involves two or more individuals sharing profits, risks, and management responsibilities of the business.

   • Partners are personally liable for business debts, promoting a strong collaborative effort but exposing them to higher risk.

6. Limited Liability Partnerships (LLPs)

   • A partnership where some or all partners have limited liabilities, protecting individual partners from certain debts.

   • Commonly used by professional practices like law firms and accounting firms.

7. Professional Corporations

   • Specifically created for licensed professionals such as doctors, lawyers, and accountants, providing limited liability while allowing them to create a corporate structure.

   • Must adhere to certain regulations and standards set by their professional licensing boards.

8. Joint Ventures

   • A temporary partnership formed for a specific project or purpose, allowing two or more parties to collaborate and share resources.

   • Ends once the project is completed.

9. Franchises

   • A business model that enables individuals to operate under an established brand name; this structure provides support, training, and resources from the franchisor.

   • Pros: offers a proven business model, brand recognition, support from the franchisor, and potentially easier access to financing.

   • Cons: Limited control over business operations, high initial investment and fees, and specific territorial limits on business operations.

   • Starting a Franchise: Franchisors often set initial qualifications such as financial requirements and fees to ensure franchisee commitment and capability, with examples including Au Bon Pain and Dunkin Donuts.

Employment Discrimination (Chapter 30)

Key Legislation

• US Constitution Amendments: 13th, 14th, and 15th Amendments provide foundational civil rights protections.

• Civil Rights Act of 1866: Established citizenship rights and equal protection under the law for all individuals.

• Equal Pay Act of 1963: Mandates that men and women receive equal pay for equal work, aiming to eliminate wage discrepancies based on gender.

• Civil Rights Act of 1964 – Title VII: Prohibits employment discrimination based on race, color, religion, sex, or national origin, creating a foundation for workplace equality.

• Pregnancy Discrimination Act: Ensures protection against discrimination for women affected by pregnancy, childbirth, or related medical conditions.

• Age Discrimination in Employment Act (ADEA): Protects workers 40 years and older from age-based discrimination in hiring, promotion, and employment practices.

• Rehabilitation Act of 1973: Protects individuals with disabilities in federal programs and activities, promoting equal access and opportunities.

• Americans With Disabilities Act (ADA): Prohibits discrimination against individuals with disabilities in employment, transportation, public accommodations, and telecommunication services, ensuring inclusivity.

• Genetic Information Nondiscrimination Act (GINA): Prohibits the discrimination of individuals based on genetic information in health insurance and employment.

Forms of Discrimination

• Disparate Treatment: Intentional discrimination against an individual based on protected characteristics.

• Disparate Impact: Policies or practices that, while neutral, unintentionally affect one group more adversely than others.

• Hostile Work Environment: Occurs when unwelcome conduct creates an intimidating, hostile, or abusive work environment affecting the conditions of employment.

• Retaliation: Adverse action taken against an employee for engaging in protected activities, such as filing a complaint or participating in an investigation.

Notable Cases

• Gulino V. Bd. Of Edu of City of Sch Dist. NY (2012): Case related to standardized testing practices impacting minority teachers.

• Gatter V. IKA - Works Inc. (2016): Concerns discrimination that occurred during a business trip affecting an employee's job security.

• Jespersen V. Harrah's (2006): Examined gender discrimination related to workplace appearance standards and grooming policies.

Other Considerations

• Factors such as family responsibilities, sexual orientation, gender identity/expression, and background checks can all influence employment discrimination cases.

• Reverse Discrimination: Claims that arise from affirmative action policies, where individuals from majority groups claim they were discriminated against in favor of underrepresented groups.

Employer Defenses Against Discrimination Claims

• Employers can utilize various strategies to defend against discrimination allegations, including proving business necessity or demonstrating that the employment decision was based on legitimate, non-discriminatory reasons.

Disability Discrimination

• Americans With Disabilities Act (ADA): Prohibits discrimination against individuals with disabilities in all aspects of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

• Employers are expected to provide reasonable accommodations for employees with disabilities, ensuring they can perform their job duties effectively while advocating for confidentiality regarding medical information.