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Chapter 21.1: Employment Conditions & Benefit Laws Section 21.1 Health & Safety Fair Wages & Benefits Privacy Employment Condition Laws • There are 3 areas covered by Employment Law: • Health & Safety • Fair Wages & Benefits • Privacy Employment Condition Laws • Health & Safety • Occupational Safety & Health Act of 1970 • Ensures employees are protected in workplace • Established Occupational Safety & Health Administration (OSHA) - an agency of the federal government that sets safety & health standards for companies Employment Condition Laws • OSHA uses 2 approaches to accomplish its mission • 1. Imposes upon employers the duty to maintain a safe & healthy work environment • 2. Creates rules that outline the safety steps businesses must maintain • DONE THROUGH ****random workplace inspections (worksite visits after a death, disaster or employee complaint) ****fines Employment Condition Laws • Wages, Hours & Benefits • The Federal Gov’t. has passed laws that set standards for employers regarding the above: • • • • Fair Labor Standards Act (FLSA) Equal Pay Act (EPA) Employment Retirement Income Security Act Family & Medical Leave Act (FMLA) Employment Condition Laws • Fair Labor Standards Act • Requires certain employers to pay their works a legal minimum hourly wage rate • PLUS time and a half (overtime) for all work over 40 hours per week • Regulates the employment of minors Employment Condition Laws Employment Condition Laws • Equal Pay Act - 1963 • Amendment to FLSA • Established Equal Pay Rule - employers engaged in interstate commerce must pay women the same rate of pay as men holding same type of job – This is a GENDER law not a RACE law. Hourly workers Executives & Administrators Salaried salespeople Professional employees Employment Condition Laws • Employment Retirement Income Security Act Prevents abuse of employee retirement money • Pension Plan - program established by an employer or union designed to provide income to employees after they retire (not controlled by employer but outside fund) Before…funds in retirement plans were mismanaged or used for other business expenses resulting in loss of benefits for employees Employment Condition Laws • Family & Medical Leave Act Employees of companies with 50+ workers are entitled to 12 weeks of leave during any 12 month period Examples: Birth or adoption of a child Care for spouse, child or parent who has a serious medical condition Employment Condition Laws • Employee Privacy Rights • 3 areas of concern: • Privacy for government employees • Testing employees for drug use • Using polygraphs (lie detectors) in making hiring/firing decisions • 3 Laws related to Employee Privacy: • Federal Privacy Act • Drug-Free Workplace Act • Employee Polygraph Protection Act Employment Condition Laws • Federal Privacy Act The privacy of government employees is often given greater emphasis than privacy of employees in private sector. People want less government in their life. Under Federal Privacy Act government employees are given the right to: Restrict inspection of their employment files Be informed of employment files & their contents Fix any mistake they might find in their files Employment Condition Laws • Drug-Free Workplace Act Firms must have a plan to be sure employees don’t use drugs on the job. It does not order companies to include drug testing. If a drug test is performed improperly it can violate 4th amendment prohibiting unreasonable search & seizure. Employment Condition Laws • Employee Polygraph Protection Act Just like drug testing, polygraph use can violate employee privacy rights (4th Amendment) This law prohibits employers from using lie detector tests for screening of employment applicants or for random testing of employees Employment Condition Laws • Laws Providing Worker Benefits These laws protect workers who have left the job because of retirement, injury or disability … as well as provides assistance to workers who have been laid off or discharged. Laws include: Social Security Work Opportunity Unemployment Insurance Worker’s Compensation Employment Condition Laws • Social Security Act – Government program that provides continuing but limited income to workers and their dependents • Provides benefits to employees and their families when their earnings stop or are reduced because of retirement, disability or death Employment Condition Laws • Unemployment Compensation Laws is a system of government payments to people who are out of work and looking for a job Payments are made from an unemployment insurance fund financed by payroll taxes or unemployment insurance paid by employers Employment Condition Laws • Worker’s Compensation Laws Is an insurance program that provides income for workers who are injured or develop a disability or disease as a result of their job Paid by Employers! Employers typically pay a tax on their payrolls to fund the state’s workers compensation fund Employment Condition Laws • Work Opportunity Laws • Welfare – a government system providing assistance to poor Americans with dependent children • - Criticized for many reasons. • As A Result….In 1996 Congress passed the Personal Responsibility & Work Opportunity Act Employment Condition Laws • Work Opportunity Laws • Also as a result of welfare criticism… • Temporary Assistance to Needy Families (TANF) • A majority of all welfare recipients must hold a job, enter career programs or face a loss of payments. This is a 2-year period.