Business Ethics

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Chapter 20
Management:

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Employment Discrimination

Its Legal, Ethical, and
Global Environment

Marianne M. Jennings

Business
11th Ed.

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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20-1
Employment Discrimination – Federal Law
Statute Date Provisions
Civil Rights Acts of 1866 and 1870
42 U.S.C. § 1981
Equal Pay Act
29 U.S.C. § 206

Civil Rights Act of 1964
42 U.S.C. § 1981 1866
1870

1963

1964 Prohibited intentional discrimination based on race, color, national origin, or ethnicity; permit lawsuits

Prohibits paying workers of one sex different wages from the other when the jobs involve substantially similar skill, effort, and responsibility; Wage and Hour Division of Department of Labor enforces; private lawsuits permitted; double damage recovery for up to three years’ wages plus attorney fees
Outlaws all employment discrimination on the basis of race, color, religion, sex, or national origin; applies to hiring, pay, work conditions, promotions, discipline, and discharge; EEOC enforces; private lawsuits permitted; costs and attorney fees recoverable

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Second level
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Fourth level
Fifth level

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20-2
Employment Discrimination – Federal Law
Statute Date Provisions
Age Discrimination in Employment Act
42 U.S.C. § 6101

Equal Employment Opportunity Act
42 U.S.C. § 2000
Rehabilitation Act
29 U.S.C. § 701
Pregnancy Discrimination Act
42 U.S.C. § 2000e 1967

1972

1973

1975 Prohibits employment discrimination because of age against employees over 40 and mandatory retirement restrictions; EEOC enforces; private lawsuits permitted; attorney fees and costs recoverable
Expanded enforcement power of EEOC

Prohibits employment discrimination on the basis of handicaps
Prohibits discrimination on the basis of pregnancy and childbirth

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Fifth level

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20-3
Employment Discrimination – Federal Law
Statute Date Provisions
Americans with Disabilities Act
29 U.S.C. § 12101
Civil Rights Act of 1991
42 U.S.C. § 1981

Glass Ceiling Act
42 U.S.C. § 2000e

Family and Medical Leave Act
29 U.S.C. § 2601
Lilly Ledbetter Fair Pay Act
42 USC § 2000a 1990

1991

1991

1993

2009 Prohibits discrimination against the handicapped

Clarifies disparate impact suit requirements; clarifies the meaning of “business necessity” and “job related”; changes some Supreme Court decisions (Wards Cove); punitive damage recovery
Creates commission to study barriers to women entering management and decision-making positions
Establishes 12 weeks of leave for medical or family reasons
Changes the recovery period for back pay

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20-4
No Protection Under “At-Will” Employment Doctrine
Civil Rights Act of 1866
Equal Pay Act of 1963
Title VII of the Civil Rights Act of 1964
Prohibited discrimination in employment on the basis of race, color, religion, sex, or national origin (amended by the Equal Employment Opportunity Act of 1972)
History

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20-5
Title VII of the Civil Rights Act of 1964
EEOC created
Federal courts given jurisdiction for suits
Equal Employment Opportunity Act of 1972 expanded power of EEOC
Amended in 1975 by the Pregnancy Discrimination Act
Prohibited discrimination on the basis of pregnancy or childbirth
History

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20-6
Age Discrimination Act of 1967
Expanded Title VII protections to include age
Rehabilitation Act of 1973
Prohibits federal contractors from discriminating against the handicapped
Americans with Disabilities Act of 1990
Provides protection for workers with disabilities and imposes requirements for access
History

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20-7
Family and Medical Leave Act
Provides family member with right to 12 weeks unpaid leave
Executive Orders: Apply to Agencies and Federal Contractors
History

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Employment Discrimination – Federal Law
Title II of the Genetic Information Nondiscrimination Act of 2008
Prohibits employers from discriminating on the basis of genetic information
Lilly Ledbetter Fair Pay Act
Effect is to change U.S. Supreme Court decision that imposed a 180-day statute of limitations on pay discrimination cases
20-8

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20-9
Prohibits Discrimination on Basis of
Race
Color
Religion
National origin
Sex
Pregnancy
Title VII Civil Rights Act

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20-10
Application of Title VII
Employers with 15 or more employees (for at least 20 calendar weeks)
Labor unions with 15 members and/or a hiring hall
Employment agencies that work for covered employers
State and local agencies
Title VII Civil Rights Act

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20-11
Noncovered Employers
Employment of aliens outside the United States
Religious corporations, when hiring for religious positions
Congress
Federal government (they have a separate scheme)
Indian tribes
Title VII Civil Rights Act

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20-12
Employment Procedures Covered
Hiring – Fringe benefits
Compensation – Rules
Training – Working conditions
Promotion – Dismissals
Demotions – Employment
– Transfers agencies referrals

Title VII Civil Rights Act

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20-13
Treating Employees or Potential Employees Differently on the Basis of Race
McDonnell Douglas v. Green Established the Required Elements
Plaintiff belongs to a minority group
Plaintiff applied for and was qualified for job
Plaintiff was rejected (despite qualifications)
Job remained open
Employer’s burden of proof to show nondiscriminatory reason for the non-hire
Disparate Treatment

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20-14
Case 20.1 Chescheir v. Liberty Mutual Ins. Co. (1983)
What employer rule is at issue?
Were there examples of disparate use of the rule?
Is there a prima facie case?
Disparate Treatment

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20-15
Not Intentional Discrimination
Rule Results in Different Effect on Groups
Example: Dothard v. Rawlinson − minimum height and weight requirement for prison guards had the effect of eliminating women
Mostly Statistical Cases Showing Impact
In Wards Cove Packing Co., Inc. v. Atonio (1989), the Supreme Court put greater burdens of proof on Title VII plaintiffs
Disparate Impact

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20-16
Civil Rights Act of 1991
Key provisions of the bill include a provision for jury trials in discrimination cases
Provides compensatory damages whereas now the only remedies are back pay and reinstatement
Employers required to carry the burden of business necessity in establishing a defense to a Title VII case
1991 Amendments also require the plaintiff employee to show causation between the practice of the employer and the disparate impact
Disparate Impact

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Disparate Impact
Case 20.2 Ricci v. DeStefano (2009)
Deals with use of testing
Tests must be validated
Once used, cannot be ignored
20-17

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20-18
Pattern or Practice of Discrimination
Generally involves a statistical comparison
Example: 38 percent of work force in a community is black; 6 percent of an employer’s work force is black
Specific Applications

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20-19
Specific Applications
Sex Discrimination: “Protective” Legislation is Prohibited
Examples: Lifting (30 lbs.) restrictions, safety restrictions, height/weight requirement; ads cannot specify male or female

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20-20
Covered by EEOC Guidelines
Employers Must Have Policies on Harassment
Possible Liability for
Demands for sexual favors − “quid pro quo”
Environment of sexual suggestion
Hostile conduct for refusal to provide sexual favors
Verbal or physical suggestions
Sexual Harassment

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20-21
Cannot be Fired for Refusal to Accept Sexual Advances
Managers and Companies Have Liability for Failure to Take Action on Complaints of Sexual Harassment
Sexual Harassment

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20-22
Case 20.3 Burlington Industries, Inc. v. Ellerth (1998)
When will an employer be held liable for sexual harassment despite a lack of knowledge?
What major issues does the dissenting opinion raise?
Vicarious Liability

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20-23
Pregnancy Discrimination Act
Coverage and protections
Cannot require pregnant employee to quit
Cannot demote upon return to work
Cannot refuse to allow employee to return to work
Same sick rules for pregnancy as other ailments
Same insurance coverage
No promotion or hiring refusals because of pregnancy
Specific Applications

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20-24
Case 20.4 International Union v. Johnson Controls, Inc. (1991)
Are circumstances given when sex is a BFOQ?
What is the Court’s position on tort liability of the company with respect to the fetus?
Sexual Discrimination

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20-25
Permitted When Religious Organization is Hiring People as Pastors or for Religious Duties
Employers Must Make Reasonable Accommodations for Employees
Case 20.5 EEOC v. Abercrombie & Fitch Stores, Inc. (2015)
How could Abercrombie & Fitch have accommodated the Plaintiff?
Religious Discrimination

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20-26
What is Affirmative Action?
Affirmative action is a remedial step taken to ensure that those who have been victims of discrimination in the past are given the opportunity to get work
It is neither required nor prohibited under Title VII
Any employer can have an affirmative action program; cannot use quotas, but can set goals
Affirmative Action

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20-27
Who is Required to Have Affirmative Action Programs?
Those who have been subject to court orders or consent decrees
Those who are state and local agencies, colleges and universities receiving federal funds
Those who are government contractors
Those who are businesses that work on federal projects
Affirmative Action

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20-28
Preparing an Affirmative Action Program
Begin with equal employment opportunity statement
Appoint an affirmative action officer
Conduct an internal audit
Establish overall goals and even goals for certain areas
Affirmative Action

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20-29
Gratz v. Bollinger (2003)
Grutter v. Bollinger (2003)
The opposite decisions in the case left affirmative actions in admissions in confusion
Fischer v. University of Texas at Austin (2013)
Court sent the case back after holding that universities had a compelling state interest in creating a diverse student body
Affirmative Action: Backlash

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20-30
Bona Fide Occupational Qualification (BFOQ)
Qualification of sex or religion is necessary for job
Examples: Pastor of Methodist churches must be Methodist, actors and actresses for parts
Customer preference is not a BFOQ
Defense: BFOQ

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20-31
Seniority
Sometimes a valid defense to Title VII
Must be bona fide
Must apply to all employees
Origins of the system cannot be discriminatory
Cannot be used to perpetuate discrimination
Defense: Seniority

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20-32
Aptitude
Tests must be validated
Job-related
Do not eliminate certain races
Validate by following employees for correlation between test scores and job performance
Defense: Aptitude

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20-33
Misconduct
Defense that there was a valid reason for termination or different treatment
Employer could even use misconduct by employee discovered after termination
Defense: Misconduct

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20-34
Case 20.6 McKennon v. Nashville Banner Publishing Co. (1995)
Does Banner deny discriminatory intent?
Is reinstatement a remedy?
Misconduct Limits

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20-35
EEOC is Responsible
Five-member commission
Appointed by president/approved by Senate
No more than three from same party
Title VII Enforcement

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20-36
Steps in an EEOC Case
Complaint
Filed by employee
Must be done within 180 days from the violation
Filed with EEOC or state agency
Employer is notified of the charge
EEOC has 180 days from filing of complaint to take action
If case not settled within 180 days, employee gets right-to-sue letter
180 days from discriminatory act, and each paycheck is an act – Lily Ledbetter law
Title VII Enforcement

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20-37
Remedies
Injunctions
Back pay
Punitive damages
Affirmative action
Attorneys’ fees
Title VII Enforcement

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20-38
Age Discrimination in Employment Act of 1967
Applies to employers with 20 or more employees
Protects those who are 40+ years of age
Case 20.7 Gonzalez v. El Dia, Inc. (2002)
What remarks were made about Ms. Gonzalez related to her age?
Why was it not discrimination?
Other Antidiscrimination Laws

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Other Antidiscrimination Laws
Equal Pay Act of 1963
Equal pay for equal work
Communicable Diseases in the Workplace
Arline case held that employer could not discriminate on the basis of tuberculosis
20-39

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20-40
Rehabilitation Act of 1973
Protection for handicapped
Enforced by Labor Department
Must make reasonable accommodations for handicapped
Employers covered:
Federal contacts over $2,500
States and municipalities
Covers: Diabetes, epilepsy, heart diseases, cancer, retardation, blindness, deaf persons, former drug addicts and alcoholics
Other Antidiscrimination Laws

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20-41
Americans with Disabilities Act
Applies to employers with 15 or more employees
Required to make reasonable accommodations for handicapped
Cost, size of work force, nature of operations
Cannot use tests to screen out handicapped applicants
Local governments required to make transportation available to handicapped
Other Antidiscrimination Laws

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20-42
ADA Obligations
Minimizing an Employer’s ADA Risks
1. Post notices describing the provisions of the ADA in your workplace.
2. Review job requirements to ensure that they bear a direct relationship to the ability to perform the essential functions of the job in question.
3. Identify, in writing, the “essential functions” of a job before advertising for or interviewing potential candidates.
4. Before rejecting an otherwise qualified applicant or terminating an employee on the basis of a disability, first determine that (a) the individual cannot perform the essential duties of the position, or (b) the individual cannot perform the essential duties of the position without imminent and substantial risk of injury to self or others, and (c) the employer cannot reasonably accommodate the disability.
5. Articulate factors, other than an individual’s disability, that are the basis of an adverse employment decision. Document your findings and the tangible evidence on which a decision to reject or terminate was based; make notes of accommodations considered.

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20-43
ADA Obligations
Minimizing an Employer’s ADA Risks (Cont’d)
6. Ask the disabled individual for advice on accommodations. This shows the employer’s good faith and a willingness to consider such proposals.
7. Institute programs of benefits and consultation to assist disabled employees in effectively managing health, leave, and other benefits.
8. Check with insurance carriers regarding coverage of disabled employees and attempt (within economic reason) to maintain provided coverage or arrange for separate coverage.
9. Keep disabled individuals in mind when making structural alterations or purchasing office furniture and equipment.
10. Document all adverse employment actions, including reasons for the employment action with respect to disabled employees; focus on the employee’s inability to do the job effectively rather than any relation to the employee’s disability.

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20-44
ADA Job Interview Questions and Issues
Legal
Do you have 20/20 corrected vision?
2. How well can you handle stress?

3. Can you perform this function with or without reasonable accommodation?
4. How many days were you absent from work last year?
Are you currently illegally using drugs?
6. Do you regularly eat three meals per day?

7. Do you drink alcohol?
Illegal
1. What is your corrected vision?
2. Does stress ever affect your ability to be productive?
3. Would you need reasonable accommodation in this job?
4. How many days were you sick last year?

5. What medications are you currently taking?
6. Do you need to eat a number of small snacks at regular intervals throughout the day in order to maintain your energy level?
7. How much alcohol do you drink per week?

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20-45
Family and Medical Leave Act
Twelve weeks’ unpaid leave each year for birth or adoption of child, illness of spouse, parent, or child
Must return to same job or equivalent
Other Antidiscrimination Laws

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20-46
Companies Must Follow Restrictions of Host Country
UN treaties support equal pay and nondiscriminatory treatment
EU follows all the treaties
The Global Workforce

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46

Chapter 19
Management of

Employee Welfare

Its Legal, Ethical, and
Global Environment

Marianne M. Jennings

Business
11th Ed.

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19-1
Employee Welfare: The Federal Statutes
Statute Date Provisions
Worker’s Compensation

Social Security Act
42 U.S.C. § 301
Fair Labor Standards Act
29 U.S.C. § 201
Equal Pay Act
29 U.S.C. § 206
Occupational Safety and Health Act
29 U.S.C. § 651
Employment Retirement Income Security Act; 29 U.S.C. § 441
Family and Medical Leave Act
29 U.S.C. § 2601 1900

1935

1938

1963

1970

1974

1993 Absolute liability of employers for employee injury; no common law tort suits by employees against employers
FICA contributions, unemployment compensation, retirement benefits
Minimum wages, child labor restrictions, equal pay

Amendment to FLSA; equal pay for equal work

Safety in the workplace, employee rights, employer reporting, inspections
Disclosure of contributions, investments, loans, employee vesting, employee statements
Protection of job after family leave (for pregnancy, child care, adult illness, elderly care)

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Second level
Third level
Fourth level
Fifth level

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19-2
Fair Labor Standards Act (FLSA)
Often called “the minimum wage law”
All covered employees must be paid minimum wage
1 1/2 time pay for overtime
Overtime pay for anything over 40 hours/week
Wages and Hours Protection

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19-3
FLSA: All Businesses Covered that Affect Interstate Commerce
Exemptions
Independent contractors
Agriculture, fishing, and domestic service
White-collar management
Executive, administrative, and professional people
Ongoing litigation RE: interns
FLSA

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Wages & Hours Protection
Overtime Threshold Regulations (2016)
Employees who earn up to $47,476 (salaried or hourly) are eligible for overtime pay over 40 hours per week
Wage threshold is also indexed – will increase every three years
Affects professionals such as academics and lab technicians
They will be required to track hours and lose flex time
19-4

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19-5
Child Labor Protections
Age 18 and over − any jobs
16-17 − any non-hazardous job, unlimited hours (hazardous − mining, logging, roofing, excavation)
14-15 − any non-hazardous, non-manufacturing, and non-mining job during non-school hours; limits on hours
Record keeping
Employers must keep records of hours and wages
Fines for not doing so
FLSA

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5

19-6
FLSA
Enforcement of FLSA
Can begin by complaint filed with U.S. Labor Department
Employer can seek interpretation from Department of Labor
Labor Department can initiate its own investigation

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6

19-7
FLSA
Violations of FLSA
Corporation is liable
Officers can be held individually liable
Fines − $10,000 first conviction
$10,000 and or six months for second violation
Employees cannot be fired for reporting violations

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7

19-8
Liability for Wage Taxes
Case 19.1 Chao v. Hotel Oasis, Inc. (2007)
Who is responsible for the wage taxes?
Why is the corporate structure not relevant for purposes of wage tax liability?

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-9
Illegal to Pay Different Wages to Men and Women Doing the Same Jobs
Equal Pay Act is Not a Comparable Worth Statute
Comparable worth requires equal pay for jobs that require equal skill, effort, and responsibility
Comparable worth changes the free marketplace concept that we as a society have adopted
Merit and Seniority Systems are Exceptions
Equal Pay Act

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9

19-10
Occupational Health and Safety Act (OSHA)
Passed to ensure workplace safety precautions
OSHA was agency created to enforce it
Employers covered − all with one or more employees
Also created Occupational Safety and Health Review Commission (OSHRC) and the National Institute for Occupational Health and Safety (NIOSH)
OSHA: Workplace Safety

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10

19-11
OSHA Coverage and Duties
Familiarize themselves with OSHA’s requirements
Post employee rights
Require protective gear
Keep records of injuries
Report fatalities and hazards causing them
Post OSHA citations
OSHA

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11

19-12
OSHA Responsibilities
Promulgate workplace safety regulations
Can award variances for certain employers
Inspections
OSHA

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12

19-13
OSHA Penalties
Type of Offense Description Penalty
Willful

Serious

Nonserious
De minimis
Failure to correct Employer aware of danger or a repeat violator

Violation is a threat to life or could cause serious injury
No threat of serious injury
Failure to post rights
Citation not followed Up to 10% above the maximum fine of $126,000 and/or six months imprisonment
Sliding scale of $3,000-$12,600
Up to $12,500 per violation
Up to $12,600 per violation
Up to $12,600 per day

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Second level
Third level
Fourth level
Fifth level

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13

19-14
Fine and Imprisonment Escalate With Seriousness of Violation
Many Employers Negotiate a Consent Decree After a Citation
If No Consent Decree, There is a Hearing Before an Administrative Law Judge (ALJ)
ALJ Makes Recommendations and OSHRC Decides
Can Then Be Appealed to a Court
OSHA Penalties

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14

19-15
State OSHA Programs
States share responsibility for safety with Feds
Secretary of Labor must approve state’s plan
State OSHA

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15

19-16
Impairment and Employees
Employment Impairment and Testing Issues
If safety is an issue, U.S. Supreme Court has authorized testing by government employer without warrant and without probable cause
Private employers generally free to require drug testing

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-17
Social Security Act of 1935
Every employee contributes to Federal Insurance Contributions Act (FICA)
Benefits under Social Security depend on work and salary range
Pensions, Retirement, and
Social Security

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17

19-18
Private Retirement Plans: Employment Retirement Income Security Act (ERISA)
Applies to employers in interstate commerce
Applies to medical, retirement, or deferred income plan
Requirements
Must give employees an annual report
Must disclose loans made from the fund
ERISA does not require pension plans, only regulates employers who offer them
Pensions, Retirement, and
Social Security

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18

19-19
Private Retirement Plans: Employment Retirement Income Security Act (ERISA)
ERISA employee rights: employees get vesting rights in their pensions
FASB 106 retirees and pensions: requires corporation to expense cost of benefits for retired employees
Pensions, Retirement, and
Social Security

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19

19-20
Pension Protection Act
Passed in Response to a Number of Large Corporate Bankruptcies That Released Employers From Pension Obligations
Pension Plans Were Funded to Correct SEC Disclosure Levels, But Not According to Real Needs of Plan
Stricter Funding Requirements Imposed

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-21
State-Administered Program
Employers Pay FUTA Taxes and States Administer Programs
Amount is Controlled by Wages and Time Working
Requirements
Must have been involuntarily terminated
Must be able and available for work
Must be seeking employment
Unemployment Compensation

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21

19-22
Principles
Employees injured in scope of employment are covered
Fault is immaterial
Independent contractors are not covered
Benefits include expenses, lost wages, and injury compensation
Workers’ Compensation

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
22

19-23
Principles
Employees do not have right of common law suit
Third parties can be sued to indemnify employers
Administrative agency handles program
Every employer must carry insurance or be self-insured
Workers’ Compensation

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23

19-24
Types of Employee Injuries
Primarily accidental
Definition has been expanded
Back problems from lifting
Medical problems − heart attacks and nervous breakdowns
Stress
Co-worker injury
Covered if arises within scope of employment
Issue of rape is a problem; employer can be sued for the failure to screen employees adequately
Workers’ Compensation

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
24

19-25
Disability Benefits
Partial disability − listed on schedule by rate
Example: 50 percent of wages
Total disability − generally 2/3 of salary
Unscheduled injuries are determined by board
Death benefits paid to family
Forfeiture of Right to Suit
The majority of states require employees to forfeit all other lawsuit rights in exchange for workers’ compensation benefits
Workers’ Compensation

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
25

19-26
Third-Party Suits
Can sue product manufacturers, other third parties, but recovery must first go to reimburse employer
Administrative Agency
Each state has an agency for administration of benefits and insurance
Insurance: Employers Must be Financially Responsible
Workers’ Compensation

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
26

19-27
Case 19.2 Hopkins v. Uninsured Employers’ Fund (2011)
What are the issues related to whether Hopkins was a volunteer?
What impact does the use of drugs have on the court’s decision?
Workers’ Compensation

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
27

19-28
Problems in Workers’ Compensation Systems
Extent of injuries covered
Fraud
Nature of injuries changing from manufacturing injuries to stress, heart disease, and repetitive motion
Long-term hazards
Relationship between Americans with Disability Act and workers’ compensation
Workers’ Compensation

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
28

19-29
Labor Unions
History and Development of Labor Legislation
Courts were very harsh at common law
Treated unions as conspiracies and allowed them to be prosecuted for such action
Strikes were perceived as intimidation techniques
Railway Labor Act of 1926
First federal legislation, but limited to railroad industry
Allowed railroad employees to unionize
Still in effect today with addition of airline employees

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
29

19-30
Norris-LaGuardia Act of 1932 (Anti-Injunction Act)
Stopped federal courts from issuing injunctions to stop union strikes
Wagner Act − National Labor Relations Act (NLRA) of 1935
Gave employees the right to unionize
Prohibited employers from firing or discriminating against union members
Established NLRB
Labor Unions: Statutes

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30

19-31
Taft-Hartley Act − Labor Management Relations Act of 1947
Lists unfair labor practices for unions
Addresses secondary boycotts
Provides president with authority to have pre-strike cooling-off period when public health and safety are at issue; has been used in coal and transportation strikes
Labor Unions: Statutes

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
31

19-32
Landrum-Griffin Act − Labor Management Reporting and Disclosure Act of 1959
Regulates union officials
Gives union members a bill of rights
Establishes penalties for misconduct
Labor Unions: Statutes

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
32

Employers, Employees, and Cyberlaw
Employers are Held Accountable for Electronic Content
Criminal Cases are Built from E-mails
Harassment Cases are Built from E-mails
19-33

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Employers, Employees, and Cyberlaw
Electronic Communications Privacy Act
Applies to live communications
Stored Communications Act
Probably covers e-mail
May not cover live interactions – “Tweeting”
19-34

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Employers, Employees, and Cyberlaw
Case 19.3 City of Ontario v. Quon (2010)
What were the officers warned about?
Did the city use the last restrictive means for reviewing content of messages?
19-35

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Employers, Employees, and Cyberlaw
Employer’s Right of Access to E-mails
Disclosure to employees
Sign-off by employees
Privacy disclaimers do not apply
19-36

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
E-Mails and Organizing
NLRB Memo Explains When Employees are Protected in Their E-mail and Online Communications
Actual Court Decisions on Protections and What Constitutes Organizing are Varied
19-37

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-38
Union Organizing Efforts
Selecting a union
Petition for union representation filed
Election
Certified union
Once selected, union represents all employees
Labor Unions: Organizing

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
38

Labor Unions: Organizing
Case 19.4 United Food and Commercial Workers Union Local 24 v. NLRB (2007)
Evaluate the statements made by management
Explain what the court decides in terms of management statements
19-39

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-40
Union Certification

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40

19-41
Union Contract Negotiations
Must bargain in good faith − 8(d) of NLRA
Try to get employer contract − collective bargaining agreement
Mandatory or compulsory subject matters: “wage hours and other terms and conditions of employment”
Wages • Pay days
Hours • Insurance
Overtime • Pensions
Vacation • Seniority
Leaves • Two-tier wage structure
Labor Unions: Good Faith

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41

19-42
Union Contract Negotiations
Permissive subjects for collective bargaining
Strike roles
Not unfair to refuse to bargain it
Cannot bargain away statutory rights
Example: Cannot agree to have a closed shop (refusing to hire nonunion people)
Failure to bargain in good faith
Constitutes an unfair labor practice
Can be the basis of a charge and complaint
Labor Unions: Subject Matter for Negotiations

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
42

19-43
Mandatory Topics
Recognition of the Union
Wages
Work Hours
Vacations
Sick Leave
Seniority
Insurance
Pension/Retirement Plans
Employee Grievances
Length of Agreement/Expiration Date
Incentive Plans
Union Announcements (Bulletin Board Rights)
Definition of Terms
Leaves of Absence
Drug Testing

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-44
Union “Concerted Activities” − Economic Pressure
NLRA gives union right to engage in concerted activities
Picketing − legal
Strike − legal economic weapon
Advertising
The Shareholders
Unions have contacted shareholders for clout
Allowed shareholders to bring public attention to the issues
Labor Unions’ Activities

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
44

19-45
Unfair Employee Practices
Slowdown
Not a strike or stoppage
Employees refuse to do certain work or use certain equipment
Featherbedding
Payment for work not actually done
Unfair labor practice
Labor Unions’ Activities

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45

19-46
Employer Rights
Freedom of speech
So long as speech is accurate and not an unfair labor practice
Right-to-work laws; prohibit closed shops
Right to an enforceable collective bargaining agreement
Labor Unions and Employer Rights

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46

19-47
Management Do’s and Don’ts in Unionization
DO:
Tell employees about current wages and benefits and how they compare to other firms.
Tell employees you will use all legal means to oppose unionization.
Tell employees the disadvantages of having a union (especially cost of dues, assessments, and requirements of membership).
Show employees articles about unions and negative experiences others have had elsewhere.
Explain the unionization process to your employees accurately.
Forbid distribution of union literature during work hours in work areas.
Enforce in a consistent and fair manner disciplinary policies and rules.

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-48
Management Do’s and Don’ts in Unionization
DON’T:
Promise employees pay increases or promotions if they vote against the union.
Threaten employees with termination or discriminate when disciplining employees.
Threaten to close down or move the company if a union is voted in.
Spy or have someone spy on union meetings.
Make a speech to employees or groups at work within twenty-four hours of the election (before that, it is allowed).
Ask employees how they plan to vote or if they have signed authorization cards.
Urge local employees to persuade others to vote against the union (such a vote must be initiated solely by the employee).

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-49
Plant Closings
Congress has passed a plant closing law and many states have same laws
Laws require notice and time frame before plant is closed
Designed to eliminate shock to local economy
Federal law is the Worker Adjustment and Retraining Notification Act of 1988
Employer Weapons

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
49

19-50
Cannot Use Temporary Closing or Send Work Away (Runaway Shops)
Plant Flight: Management Closes Plants and Outsources Work to Foreign Countries
Lockout Employer Refuses to Allow Employees to Work
Conferring Benefits OK if Not Done Too Close to Union Election
Bankruptcy May Be Used to Reject Collective Bargaining Agreement
Employer Weapons

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
50

19-51
Economic Rights and Weapons − Employer
Economic Weapons Rights Unfair Labor Practices
Business closing; plant closing
Lockouts
Right to confer benefits (timing) Freedom of speech
Demand election (30%) Refusal to bargain in good faith
Refusal to bargain on a mandatory issue
Yellow-dog contracts
Violation of collective bargaining agreement
Interference with joining union
Timing of benefits
Observation of union activities
Domination of labor union
Discrimination in promotion of union members
Blacklisting

Click to edit Master text styles
Second level
Third level
Fourth level
Fifth level

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-52
Economic Rights and Weapons − Employee
Economic Weapons Rights Unfair Labor Practices
Strike
Slowdown, refusals to work overtime
Picketing
Freedom of speech
Right to union representation upon investigation
Right to join union
Right of members to adequate representation
Right to union office Violation of collective bargaining agreement
Secondary boycotts
Payment for union cards
Coercion or discrimination in union membership
Causing an employer to pay excessive wages – featherbedding
Hot cargo agreements

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-53
Federal Immigration Laws Require Employers to Verify Employee is a U.S. Citizen or Has the Right to Work in the U.S.
Must Have I-9
Immigration Reform Requires Greater Employer Diligence
“Highly Skilled” Workers (H-1B Professional) Can Come and Work in High-Tech Industries
Labor Management Cooperation Act Provides Mediation as an Alternative
International Issues

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
53

19-54
National Security Issues
USA Patriot Act of 2002
Verification requirements
Homeland Security Act of 2002
Background checks
Security checks
American Competitiveness in the Twenty-First Century Act of 2000
Preservation of U.S. workers’ jobs

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
19-55
The Examples of International Labor Issues
Sweatshop conditions affect consumer perception
International and domestic pressures
Stock value drops
Safety Issues Have Emerged With Collapses of Factories
Creation of Teams by Companies has Effect of Mixing Labor and Management
International Issues

©2017 Cengage Learning®. May not be scanned, copied or duplicated or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
55

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The Value of a Nursing Degree
Undergrad. (yrs 3-4)
Nursing
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