Chapter 24 Employment Law (revised 6.16.2020) (1)

Chapter Overview

  • Chapter 24 discusses Employment and Discrimination Law as covered in the 5th edition (5e) and the related chapters in the 6th edition (6e).

Business Context

  • Businesspeople often find themselves in dual roles as both employees and employers.

  • Understanding employment law compliance is essential for both roles, ensuring protection as an employee while being compliant as an employer.

Employment At-Will

  • At-will Employment: Definition and implications:

    • An at-will employee does not have a set contract or collective bargaining agreement.

    • Employees may terminate their employment at any time for any reason without required notice.

    • Employers may also terminate at-will employees for almost any reason, provided it’s not unlawful.

Federalism and Employment Law

  • Federal laws serve as a minimum standard for worker protections.

  • States can offer greater protections but not lesser protections than federal laws.

  • In Texas, state laws generally align with federal protections, offering no additional protections.

Categories of Labor and Employment Law

  • Types of employment laws include:

  • Employment Discrimination Law

  • Individual Employee Rights Laws

  • Labor Law related to unionization.

Protected Characteristics under Anti-Discrimination Laws

  • Key legal frameworks:

    • Title VII of the Civil Rights Act of 1964:

      • Prohibits discrimination based on race, color, religion, sex, and national origin.

    • Americans with Disabilities Act (ADA):

      • Requires accommodations for employees with disabilities unless it imposes undue hardship.

    • Age Discrimination in Employment Act (ADEA):

      • Protects individuals over 40 from age discrimination.

    • Equal Pay Act of 1963 (EPA):

      • Prohibits gender-based wage disparities for equivalent work.

    • Must treat pregnancy-related disability the same as other temporary disabilities.

Equal Employment Opportunity (EEO)

  • EEO laws prohibit discrimination in hiring, promotion, termination, and other employment terms based on:

    • Race, religion, sex, national origin, and genetic information.

  • Employers must also reasonably accommodate employees’ religious practices if feasible.

Remedies for Discrimination

  • Possible damages under Title VII include:

    • Back pay, compensatory and punitive damages, attorney fees, court costs, and reinstatement orders.

Discrimination Theories

  • Disparate Treatment:

  • Occurs when an employee is discriminated against because of their membership in a protected class.

  • Disparate Impact:

  • A seemingly neutral policy that disproportionately affects a protected class.

  • Establishing this involves proving statistical evidence against the employer.

Proving Discrimination

  • Disparate Treatment:

  1. Employee must establish prima facie case of discrimination.

  2. Employer must give a legitimate, non-discriminatory reason for the action.

  3. Employee must prove the employer's reason is a pretext.

  • Disparate Impact:

  1. Employee must show statistical significance demonstrating impact on a protected class.

  2. Burden shifts to employer to prove necessity of the practice.

  3. Employee can still prove pretext of the necessity.

Sexual Harassment

  • Definition and types:

  • Hostile Work Environment: Unwelcome actions creating an intimidating environment.

  • Quid Pro Quo: Conditions of employment linked to submission to sexual advances.

  • Same-sex harassment is also actionable under Title VII.

Defenses Against Discrimination Claims

  • Bona Fide Occupational Qualification (BFOQ):

    • Employers can discriminate based on sex, religion, or national origin if necessary for job performance (not race/color).

    • Seniority Systems: Legal under Title VII, even if it perpetuates past discrimination.

EEOC Charge Process

  • Employees must file a charge with the Equal Employment Opportunity Commission (EEOC) or a state agency before filing a lawsuit.

  • Charges must be filed within strict timelines to preserve rights.

Fair Labor Standards Act (FLSA)

  • Establishes the federal minimum wage at $7.25 per hour.

  • Requires overtime pay for hours worked over 40 in a week.

  • Some employees exempt from FLSA include executives, professionals, and outside salespersons.

Family and Medical Leave Act (FMLA)

  • Eligible employees can take up to 12 weeks of unpaid leave for family-related occurrences (birth, adoption, illness).

  • Employers must maintain health insurance during FMLA leave.

Workers’ Compensation Laws

  • Provide financial compensation to injured employees in the workplace.

  • Texas allows employers to opt-out of workers’ compensation insurance.

COBRA and ERISA

  • COBRA: Allows employees to extend their health benefits after job loss.

  • ERISA: Sets standards for pension and health plans to protect individuals in these plans.

Occupational Safety and Health Administration (OSHA)

  • Establishes workplace safety standards and enforces them through inspections.

Employee Privacy Rights

  • Employers have limitations on monitoring private communications (phones, emails) but can monitor with consent.

USERRA

  • Provides reemployment rights to servicemen and prohibits discrimination based on military service.

Labor Unions

  • Labor law governs the relationship between employers and unions, with Texas being a right-to-work state.

  • National Labor Relations Act (NLRA): Protects employee rights to organize and collectively bargain.

Conclusion

  • Knowledge of employment and discrimination laws is essential for navigating both employee and employer responsibilities.