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Business Law for a New CenturyBusiness Law for a New Century Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide or previous slide.

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Business Law for a New CenturyBusiness Law for a New Century

Quote of the DayQuote of the Day

“I wouldn’t want to live unless I could work for a living.”

-- Erle Stanley Gardnermystery writer, creator of Perry Mason

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History of Employment LawHistory of Employment Law In pre-industrial society, most people

followed their parents’ occupations.

Employers knew their workers and expectations were understood.

With the industrial revolution came changes in employment law too, and a trend toward employment contracts.• Without a contract, a worker was an

employee at will. • An employee at will can be fired for a good

reason, a bad reason or no reason at all.

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National Labor Relations ActNational Labor Relations Act NLRA (or the Wagner Act):

• Created the National Labor Relations Board to enforce labor laws,

• Prohibits employers from penalizing workers who engage in union activity (for example, joining a preexisting union or forming a new one); and

• Requires employers to “bargain in good faith” with unions.

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Family and Medical Leave Act (FMLA)

Family and Medical Leave Act (FMLA)

In 1993, Congress passed the Family and Medical Leave Act (FMLA), which guarantees both men and women up to 12 weeks of unpaid leave each year for childbirth, adoption, or medical emergencies for themselves or a family member.

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Wrongful DischargeWrongful Discharge Wrongful discharge prohibits an

employer from firing a worker for a bad reason.

The public policy rule prohibits an employer from firing a worker for a reason that violates basic social rights, duties, or responsibilities, such as:• Refusing to Violate the Law• Exercising a Legal Right• Performing a Legal Duty (like jury duty)

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WhistleblowersWhistleblowers Employees who disclose illegal

behavior of their employers.

They are protected in these situations:• Wrongdoing by government contractors• Government employees speaking out on a

matter of public concern• Federal employees reporting illegal federal

activity• Reporting illegal activity for which the

whistleblower himself could be in trouble• Reporting a co-worker’s illegal activities

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Contract LawContract Law Truth in Hiring

• Oral promises made during the hiring process can be enforceable.

• Employers may be liable for promises that they cannot keep.

• An employee handbook can create a contract.

Covenant of Good Faith & Fair Dealing• In some cases, courts will imply a covenant

of good faith and fair dealing in an at-will employment contract.

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DefamationDefamation Employers may be liable for defamation

when they give false and unfavorable references about a former employee.

More than half of the states, however, recognize a qualified privilege (protection unless the statement is known false or given in ill will) for employers who give references about former employees.

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Intentional Infliction of Emotional Distress

Intentional Infliction of Emotional Distress

Employers who condone cruel treatment of their workers face liability under the tort of intentional infliction of emotional distress.

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Workplace SafetyWorkplace Safety In 1970 Congress passed the

Occupational Safety and Health Act (OSHA) to ensure safe working conditions.• Sets specific health and safety standards.• Obliges employers to keep workplace “free

from recognized hazards.”• Requires records of all injuries and

accidents.• Allows inspection of workplaces and fines

for unsafe conditions.

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Employee PrivacyEmployee Privacy In many places, off-duty conduct cannot

be regulated by the employer.

Alcohol and drug testing is allowed by private businesses; government employees may test if signs of use are seen or if job safety is an issue.

Employers may not require or even suggest the use of lie detector tests, except in investigations of crimes.

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Electronic Monitoring of the Workplace

Electronic Monitoring of the Workplace

The Electronic Communications Privacy Act of 1986 (ECPA) permits employers to monitor workers’ telephone calls and e-mail messages if: • the employee consents, • the monitoring occurs in the ordinary

course of business, or • in the case of e-mail, the employer provides

the e-mail system.

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Financial ProtectionFinancial Protection Fair Labor Standards

• Passed in 1938, the Fair Labor Standards Act (FLSA) regulates wages and limits child labor.

Workers’ Compensation• Workers’ compensation statutes ensure

that employees receive payment for injuries incurred at work.

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Financial Protection (cont’d)Financial Protection (cont’d)

Social Security• Currently, the Social Security system pays

benefits to workers who are retired, disabled, or temporarily unemployed and to the spouses and children of disabled or deceased workers.

Pension Benefits• In 1974, Congress passed the Employee

Retirement Income Security Act (ERISA) to protect workers covered by private pension plans.

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Employment DiscriminationEmployment Discrimination Under the Equal Pay Act, an employee

may not be paid a lesser rate (for equal work) than opposite sex employees.

Title VII of the Civil Rights Act of 1964 • Prohibits employers from discriminating on

the basis of sex, race, color, religion, or national origin.

• Employers must make reasonable accommodation for a worker’s religious beliefs unless the request would cause undue hardship for the business.

• Affirmative action is not required by Title VII, nor is it prohibited.

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Defenses to Charges of Discrimination

Defenses to Charges of Discrimination

There are three possible defenses for a charge of discrimination:• Merit• Seniority• Bona Fide Occupational Qualification

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Sexual HarassmentSexual Harassment Involves unwelcome sexual advances,

requests for sexual favors, and verbal or physical conduct of a sexual nature.

Hostile Work Environment• A claim of sexual harassment might be

valid if sexual innuendo is so pervasive that it interferes with an employee’s ability to do her (or his!) job.

Pregnancy• An employer may not fire or refuse to hire a

woman just because she is pregnant.

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Age DiscriminationAge Discrimination The Age Discrimination in Employment

Act (ADEA) of 1967 prohibits age discrimination against employees or job applicants who are at least 40 years old.

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Americans with Disabilities ActAmericans with Disabilities Act A disabled person is someone with a

physical or mental impairment that substantially limits a major life activity, or someone who is regarded as having such an impairment.

An employer may not disqualify a job applicant or employee because of disability as long as she can, with reasonable accommodation (would not create undue hardship) perform the essential functions of the job.

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“Employment law is an important -- and difficult -- area

of law to study. It affects almost everyone and it is

changing rapidly.”

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Link to the InternetLink to the Internet Clicking on the orange button below will link

you to the website for this book. (You must first have an active link to the internet on this computer.)

Once there, click:• Online Study Guide, then• Your choice of a chapter, then• Practice, then• Internet Applications

You should then see web links related to that chapter.

Click here!

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