⚖️Business Law Unit 9 – Employment and Labor Law

Key Concepts and Definitions

• Employment law governs the rights and duties between employers and employees
• Labor law mediates the relationship between workers, employers, unions, and the government
• At-will employment means an employee can be dismissed by an employer for any reason without warning (exceptions apply)
• Exempt employees are not entitled to overtime pay or minimum wage (executive, administrative, professional, outside sales, and some computer employees)
  • Non-exempt employees are entitled to minimum wage and overtime pay
• Collective bargaining is the negotiation process between employers and a group of employees aimed at agreements to regulate working conditions
• A union is an organized association of workers formed to protect and further their rights and interests
• Discrimination is the unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability
• Occupational Safety and Health Administration (OSHA) is a federal agency that ensures safe and healthful working conditions by setting and enforcing standards

Historical Context of Labor Laws

• Labor laws have evolved since the Industrial Revolution to address poor working conditions and worker exploitation
• In the early 20th century, child labor was common, and many workers faced long hours, low wages, and dangerous conditions
• The Fair Labor Standards Act (FLSA) of 1938 established the 40-hour workweek, minimum wage, and overtime pay
  • FLSA also prohibited most employment of minors
• The National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act, gave workers the right to form unions and engage in collective bargaining
• The Taft-Hartley Act of 1947 restricted the power of unions and allowed states to pass "right-to-work" laws
• The Civil Rights Act of 1964 prohibited discrimination based on race, color, religion, sex, or national origin
• The Occupational Safety and Health Act (OSH Act) of 1970 created OSHA to ensure safe and healthful working conditions

Major Employment Laws and Regulations

• Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin
• The Age Discrimination in Employment Act (ADEA) of 1967 protects individuals 40 years of age or older from age-based employment discrimination
• The Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against individuals with disabilities in all areas of public life, including jobs
  • ADA requires employers to provide reasonable accommodations to qualified individuals with disabilities
• The Family and Medical Leave Act (FMLA) of 1993 entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons
• The Equal Pay Act (EPA) of 1963 requires that men and women in the same workplace be given equal pay for equal work
• The Pregnancy Discrimination Act (PDA) of 1978 prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions
• The Genetic Information Nondiscrimination Act (GINA) of 2008 prohibits the use of genetic information in making employment decisions

Rights and Responsibilities of Employers

• Employers must provide a safe and healthful workplace free from recognized hazards
• Employers must comply with all applicable federal, state, and local laws and regulations
• Employers have the right to establish job qualifications and hire the most qualified candidates
  • However, these qualifications must be job-related and not discriminatory
• Employers can terminate employees for legitimate, non-discriminatory reasons, such as poor performance or misconduct
• Employers must provide reasonable accommodations for employees with disabilities, unless doing so would cause undue hardship
• Employers must maintain employee records, including payroll records, for a specified period
• Employers must post required notices in the workplace to inform employees of their rights under various laws (minimum wage, OSHA, FMLA)
• Employers must withhold payroll taxes and make required contributions (Social Security, Medicare, unemployment insurance)

Employee Rights and Protections

• Employees have the right to a safe and healthful workplace free from recognized hazards
• Employees have the right to be free from discrimination based on protected characteristics (race, color, religion, sex, national origin, age, disability, genetic information)
• Employees have the right to engage in protected concerted activities, such as discussing wages or working conditions with coworkers
  • Employers cannot retaliate against employees for engaging in these activities
• Eligible employees have the right to take job-protected leave under the FMLA for specified family and medical reasons
• Employees have the right to be paid at least the federal minimum wage and overtime pay for hours worked over 40 in a workweek (non-exempt employees)
• Employees have the right to file complaints with government agencies (EEOC, OSHA, DOL) if they believe their rights have been violated
• Whistleblowers who report illegal activities or safety concerns are protected from retaliation under various laws

Discrimination and Equal Opportunity

• Discrimination in employment is prohibited based on protected characteristics (race, color, religion, sex, national origin, age, disability, genetic information)
• Disparate treatment occurs when an employer intentionally treats an employee differently based on a protected characteristic
  • Example: Not hiring a qualified candidate because of their race
• Disparate impact occurs when a neutral policy or practice has a disproportionate negative effect on a protected group
  • Example: A physical ability test that disproportionately excludes women
• Harassment is a form of discrimination that involves unwelcome conduct based on a protected characteristic that creates a hostile work environment or results in an adverse employment decision
  • Sexual harassment includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature
• Employers must provide equal pay for equal work regardless of gender, as required by the Equal Pay Act
• Affirmative action plans may be used to increase diversity in the workplace, but quotas are generally illegal

Workplace Safety and Health

• Employers must provide a safe and healthful workplace free from recognized hazards, as required by the OSH Act
• OSHA sets and enforces safety and health standards for most private sector employers
  • Examples: Fall protection, hazard communication, respiratory protection
• Employers must provide personal protective equipment (PPE) to employees when necessary to protect against hazards
• Employees have the right to request an OSHA inspection if they believe their workplace is unsafe
• Employers must report work-related fatalities to OSHA within 8 hours and work-related inpatient hospitalizations, amputations, or eye losses within 24 hours
• Employers must keep records of work-related injuries and illnesses (OSHA Form 300)
• Retaliation against employees who report safety concerns or participate in OSHA inspections is prohibited
• Some industries have specific safety regulations (construction, agriculture, maritime)

Current Issues and Trends in Employment Law

• The gig economy and the classification of workers as independent contractors or employees is a growing concern
  • Misclassification can result in workers being denied benefits and protections
• The use of artificial intelligence (AI) in hiring and employment decisions raises questions about potential bias and discrimination
• The COVID-19 pandemic has highlighted issues related to remote work, paid leave, and workplace safety
  • The Families First Coronavirus Response Act (FFCRA) provided temporary paid leave for certain COVID-related reasons
• The #MeToo movement has increased focus on preventing and addressing sexual harassment in the workplace
• Pay equity and the gender wage gap continue to be significant issues, with some states and localities enacting salary history bans
• The legalization of marijuana in some states has led to questions about drug testing and accommodations for medical marijuana use
• The Supreme Court's decision in Bostock v. Clayton County (2020) held that Title VII's prohibition on sex discrimination includes sexual orientation and gender identity