BSN 107

1. ESSENTIALS OF THE LEGAL
ENVIRONMENT TODAY, 5E
ROGER LEROY MILLER
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2. CHAPTER 16
EMPLOYMENT,, IMMIGRATION,
AND LABOR LAW
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3. LEARNING OBJECTIVES
1. What is the difference between an
employee and an independent
contractor?
2. What federal statute governs working
hours and wages?
3. Under the Family and Medical Leave
Act, in what circumstances may an
employee take family or medical
leave?
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4. LEARNING OBJECTIVES (CONT’D)
4. What are the two most important
federal statutes governing
immigration and employment
today?
5. What federal statute gave
employees the right to organize
unions and engage in collective
bargaining?
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5. AGENCY RELATIONSHIPS
• Agency is a “fiduciary” relationship
based on trust and confidence.
• Employer-Employee Relationships
• Employee is one whose physical conduct is
controlled by the employer.
• Employer-Independent Contractor
Relationships
• Independent contractor is not an employee
because employer does not have control over
their physical performance. LO-1
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6. AGENCY RELATIONSHIPS
• Determining Employee Status
• Criteria used by the courts
• 7 questions courts often consider to determine whether a
worker has the status of an employee or independent
contractor
• Criteria used by the Internal Revenue
Service
• Own criteria to determine whether a worker is an
employee or independent contractor
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7. AGENCY RELATIONSHIPS
• Formation of Agencies
• Consensual relationships
• Agency by agreement of the parties
• Agency by ratification
• Agency by estoppel
• Agency by operation of law
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8. AGENCY RELATIONSHIPS
• Duties of Agents and Principals
• Agent’s duties to the principal
• Performance
• Notification
• Loyalty
• Obedience
• Accounting
• Principal’s duties to the agent
• Compensation
• Reimbursement and indemnification
• Cooperation
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9. AGENCY RELATIONSHIPS
• Agent’s Authority
• Express authority
• Authority declared in clear, direct, and definite terms
• Implied authority
• To do what is reasonably necessary to carry out his or her
express authority and accomplish the objectives of the
agency
• Apparent authority
• Apparent, not real authority
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10. AGENCY RELATIONSHIPS
• Liability in Agency Relationships
• Liability for contracts
• Authorized acts
• Disclosed or partially disclosed principal
• Undisclosed principal
• Unauthorized acts
• Liability for torts and crimes
• Determining the scope of employment
• Liability for agent’s intentional torts
• Liability for independent contractor’s torts
• Liability for agent’s crimes
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11. WAGES AND HOURS
• 1930s Congress enacted several laws
• Davis-Bacon Act
• “Prevailing wages”
• Walsh-Healey Act
• U.S. government contracts; minimum wage and overtime
1.5 times regular pay rates
• Fair Labor Standards Act (FLSA)
• Extends wage-hour requirements to cover all employers
engaged in interstate commerce plus selected other
businesses
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LO-2

12. WAGES AND HOURS
• Child Labor
• FLSA prohibits oppressive child labor
• Wages and Hours
• FLSA provides a minimum wage of $7.25/hour
be paid to employees in covered industries
(minimum wage may be higher at present)
• Overtime Exemptions
• Executive, administrative, professional
employees
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13. FAMILY AND MEDICAL LEAVE
• 1993 Congress passed Family and
Medical Leave Act (FMLA)
• Allows employees to take time off from
work for family and medical reasons
• Additional categories of FMLA have
been created for military caregivers
and emergencies that arise due to
military service
LO-3
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14. FAMILY AND MEDICAL LEAVE
• Coverage and Applicability of the
FMLA
• Requires employers with 50+ employees to
provide up to 12 weeks of unpaid leave
during any 12-month period
• Expressly covers private and public
employees who have worked for their
employers for at least 1 year
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15. FAMILY AND MEDICAL LEAVE
• Violations of the FMLA
• Employers who violate the FMLA can be
required to provide remedies:
• Damages to compensate an employee for lost benefits,
denied compensation, and monetary losses up to an
amount equivalent to the employee’s wages for 12
weeks
• Job reinstatement
• Promotion, if a promotion has been denied
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16. WORKER HEALTH AND SAFETY
• The Occupational Safety and Health
Act
• 1970 Occupational Safety and Health Act
administered by Occupational Safety and
Health Administration (OSHA)
• Imposes on employers a general duty to
keep workplaces safe
• Requires employers to post notices,
perform record keeping, and submit
reports
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17. WORKER HEALTH AND SAFETY
• State Workers’ Compensation Laws
• 2 requirements for an employee to receive
benefits under workers’ comp law
1. The existence of an employment relationship
2. An accidental injury that occurred on the job or in the
course of employment, regardless of fault
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18. INCOME SECURITY
• Federal and state governments
participate in insurance programs to
protect employees and families by
covering financial impact of
retirement, disability, death,
hospitalization, and unemployment.
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19. INCOME SECURITY
• Social Security
• Social Security Act; OASDI
• Employers and employees contribute
under the Federal Insurance Contributions
Act (FICA)
• Retired workers are eligible to receive
monthly payments
• Benefits are fixed by statute but increase
with cost of living increases.
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20. INCOME SECURITY
• Medicare
• Federal government health-insurance
program
• Administered by the Social Security
Administration for people 65 years and
older or under 65 and disabled
• Under FICA, employer and employee
contribute to Medicare
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21. INCOME SECURITY
• Private Pension Plans
• Employee Retirement Income Security Act
(ERISA)
• Governs employers that have private
pension funds for their employees
• Pension Benefit Guaranty Corporation
(PBGC)
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22. INCOME SECURITY
• Unemployment Insurance
• Federal Unemployment Tax Act (FUTA)
• Provides compensation to eligible people
who have lost their jobs
• Eligible: worker must be willing and able to work
• Not eligible: workers fired for misconduct or have
voluntarily left their jobs
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23. INCOME SECURITY
• COBRA
• Enables workers to continue their health-
care coverage after their jobs have been
terminated
• Consolidated Omnibus Budget
Reconciliation Act (COBRA)
• Employer-Sponsored Group Health
Plans
• Health Insurance Portability and
Accountability Act (HIPAA)
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24. INCOME SECURITY
• Affordable Care Act (ACA)
• Most employers with 50+ employees are
required to offer health-insurance benefits
• Any business offering health-insurance
benefits may be eligible for tax credits
• An employer who fails to provide benefits
as required under the law can be fined
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25. EMPLOYEE PRIVACY RIGHTS
• Electronic Monitoring
• More than half of employers engage in
some form of electronic monitoring of
employees
• Employee privacy protection
• Was there a reasonable expectation of
privacy?
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26. EMPLOYEE PRIVACY RIGHTS
• Other Types of Monitoring
• Lie-detector tests
• Drug testing
• Public employers – constrained by Fourth Amendment
• Private employers – Fourth Amendment does not apply
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protected website for classroom use.

27. IMMIGRATION LAW
• Most important laws governing
immigration and employment
• Immigration Reform and Control Act
(IRCA)
• Immigration Act
• Estimated 12 million illegal immigrants live
in the U.S.
LO-4
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28. IMMIGRATION LAW
• Immigration Reform and Control Act
(IRCA)
• I-9 employment verification
• I-9: Employment Eligibility Verification
• Must perform to comply with IRCA
• Enforcement
• U.S. Immigration and Customs Enforcement (ICE)
investigative arm of U.S. Department of Homeland
Security
• Penalties
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29. IMMIGRATION LAW
• The Immigration Act
• I-551 Alien Registration Receipt
• Company seeking to hire noncitizen worker may only do
so if the worker is self-authorized (lawful permanent
resident or has a valid temporary Employment
Authorization Document)
• The H-1B visa program
• Employee must be qualified in a “specialty occupation”
(highly specialized knowledge and a bachelor’s degree
or higher)
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30. LABOR UNIONS
• Federal Labor Laws
• Norris-LaGuardia Act
• National Labor Relations Act (NLRA)
• National Labor Relations Board (NLRB)
• Good faith bargaining
• Labor-Management Relations Act (LMRA)
• Labor-Management Reporting and
Disclosure Act (LMRDA)
LO-5
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31. LABOR UNIONS
• Union Organization
• Union elections
• Union election campaigns
• Collective Bargaining
• Strikes
• The right to strike – guaranteed by NLRA
• After a strike ends
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