Employment Protection & Equal Opportunity

1. Employment Protection & Equal Opportunity Chapter 21.1 “Laws Relating to Employment Conditions and Benefits”

2. Employment Conditions • In the early days employers demanded a great deal from workers offering little in return • There was little regard for employees safety and quality of life • Employment conditions are divided into 3 areas: • Health and Safety • Right to fair wages and benefits • Privacy rights

3. 1. Health & Safety • The federal “Occupational Safety and Health Act of 1970” enacted to ensure employees were protected in the work place • Established the Occupational Safety and Health Administration (OSHA) • Businesses with 11 or more employees that engage in interstate commerce must meet OSHA standards • OSHA uses 2 approaches • Imposes a safe and healthy work environment • Creates rules that outline the safety steps a business must maintain • These rules are enforced by inspections and fines

4. Inspections • OSHA randomly inspects workplaces • OSHA inspects a business when • a death occurs • A disaster occurs • When an employee files a complaint • Must be written • Filed at the nearest OSHA office by the employee or representative • Law protects employees who file complaints • Employers may be fined for any violation

5. EXAMPLE • Teresa Love worked on the loading dock for Chamberlain Industries. She discovered that Chamberlain was storing dangerous chemicals in the garage area of the loading dock. When she reported it to her supervisor, her complaint was ignored. Accordingly, she filed a complaint with the local OSHA office, which scheduled an inspection. Should Chamberlain take retaliation action against Teresa, that action would be illegal.

6. 2. Wages and Benefits • “Fair Labor Standards Act” • AKA “Wage and Hour Law” • Regulates hourly wage and overtime pay • Regulates employment of minors • Professional employees, administrators, and executives NOT covered by this act. • Equal Pay Act • Amendment to the Fair Labor Standards Act • Established ‘equal pay rule’ • Covers everyone – men and women

7. 2. Wages and Benefits Cont… • Employment Retirement Income Security Act • Pension plan – program established by employer/union to provide income to employees at retirement • The “Employment Retirement Income Security Act” (ERISA) protects employees retirement investments • Family and Medical Leave Act • Company with at least 50 employees • Employees are entitled to a leave of absence period without losing their jobs • Birth, adoption, care for a spouse, child or parent with serious medical condition

8. Employee Privacy Rights • Employee privacy rights has become a central concern in the workplace • There are 3 areas of primary concern • Privacy for governmental employees • Testing employees for drug use • Using polygraph test results for hiring and firing of employees

9. 1. Federal Privacy Act • Directly addresses the privacy of government employees • They are given the right to restrict inspection of their employment files • Be informed of their employment files • Be informed of the contents of those files • Have any mistake fixed that they might find in those files

10. 2. Drug-Free Workplace Act • Applies to companies that have contracts with the federal government • Aims to create a drug-free work environment • Does not order companies to use drug testing • If the drug test is performed improperly, it can violate the Fourth Amendment (prohibits unreasonable search and seizure) • Some states regulate drug testing in the private sector • Must communicate results which are kept confidential • Initiate a back up test if needed • Must give the applicant a chance to challenge the results

11. Employee Polygraph Protection Act • Can violate rights of employees • Act prohibits employers from using it for screening of employment applicants or random testing • Exceptions to rule include • Businesses involved in security • Handling controlled substances

12. Laws Providing Worker Benefits • Social Security Act • Government program providing limited income to workers and their dependents • Provides benefits to employees and their families when earnings stop or are reduced due to • Retirement • Death • Disability • Unemployment Compensation Laws • A system of government payments to people who are out of work and looking for a job

13. Laws Providing Worker Benefits • Workers’ Compensation Laws • Loss of income due to accidents, illness or death on the job • Insurance program that provides income for workers who are injured or develop a disease or disability as a result of their job • Work Opportunity Laws • AKA “Welfare” • System that provides assistance to poor Americans with dependent children • Many criticisms • New system has many restrictions • Ex. Minors with children MUST maintain their education

14. POP QUIZ • Tyco Drugs is experiencing a loss of inventory that the manager feels may be due to employee theft. Allison, who works at the cosmetic counter, has been asked to take a polygraph test. Is this test legal? • Answer: • YES. Because the company is a drug company, they are allowed to conduct this test.

15. Reverse Discrimination?? • Harry and Melissa both work for Oglethorpe Manufacturing Company, and they have both applied for the position of manager of the assembly division. They perform equally well on a skills test and are both well qualified for the job. Melissa, however, gets the job. • Harry believes that the only reason she got the job was because she was a woman, and Oglethorpe has few women managers. • Do you think that Oglethorpe has acted unethically? Do you think that Harry’s accusations are justified? Explain.