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United States labor law is a heterogeneous collection of state and federal laws. They both set the standards for
Workers rights Wages Working conditions Overtime Work place safety Employment discrimination Pensions Compensations
Milestones
at-will employment Fair Employment Act Americans with Disabilities Act of 1990 Family and Medical Leave Act of 1993 Fair Labour Standards Act
Employment in the US
Employment Law
Three features
Employment law exists at Federal and State level there are often conflicting interpretations, so difficult to maintain policies across State Borders Employment Law is enforced through the courts so is adversarial in nature There has been a shift from Collective to individual rights
Employment Contracts
Can be written, verbal (express) or implied Can be affected by collective agreements or Federal law Fixed Term or indefinite Employees and workers used interchangeably, but contractors are different! Employment at will - can be terminated at any stage by either party immediately, with or without cause.
Probationary periods
Are legitimate can be for any period, typically 2 weeks to a year Often avoided as can be held to establish contract that employment can only be terminated for cause Some insert clause that employment after probation is at will No legal contractual difference with probationary employees.
Other legislation:
Equal Pay Disabilities Age
Foreign citizens must have a visa that permits employment. Immigrants entitled to work are lawful permanent residents (LPRs, or green card holders) and are taxable as U.S. citizens. Generally, LPRs are entitled to the same civil rights as U.S. citizens
Hours of Work
Federal law does not limit hours that can be worked, but specifies overtime payment after 40 hours Exec, Admin and Professional staff are exempt this rule, hence exempt and nonexempt status Some state law limits working time with no breaks or specifies rest periods
Public Holidays
Federal New Year Martin Luther King Presidents Memorial Independence Labor Columbus Veterans Thanksgiving (2 days) Christmas May be State days in addition Generally paid, but not required
Vacations
No legal right to paid vacation, except by certain states with their contractors Personal leave often allowed up to 5 days Some states enforce take it or lose it, others allow carry forward All states allow payment for untaken holiday, some require it, or pay in lieu
Disability
Federal law requires reasonable accommodation which includes time off
Pay
Minimum Wage
Exists at both Federal and State level Some exemptions for apprentices, students and special cases Federal is standard across all states, currently around $5 6, States usually set higher levels Some municipalities set living wage levels higher than this, for council contracts Hourly rate and it applies as compensation regardless of OT, shift or bonus
Deductions
Federal and state law obliges deductions of tax and social security, plus authorised deductions Attachment of earnings orders are also permitted subject to restrictions, in some states, plus Federal protection
Social Security
Social Security Base used for calculation of percentage contribution rates.
Old age, health and disability Medicare for retirees, hospitalisation and supplementary medical.
Health Care
Cost is the major concern Co-funding is typical and now the norm retired workers are eligible for Medicare If the employee fails to provide it he can be penalized.
Health Care
Generally broad coverage
Hospital Surgical Medical (in hospital) Laboratory X-Rays Maternity Dental
Retirement age
Currently 65 for both sexes Moves to 67 for employees born 1960 or later
Pensions
Regulated by the Federal Government Employment Retirement Income Security Act of 1974 (ERISA) regulates private plans Defined Benefit and Defined contribution plans in existence Typically contributory
Termination
Employment Protection is still primitive Employment at will being eroded by court decisions for wrongful dismissal
Notice
No statutory period, except in case of mass layoffs 60days Can be included in contract, often two weeks but can be longer for sensitive positions Employee cannot be forced to work during notice or prevented from working for another company, unless there is a non competition clause in contract No requirement of severance payments usually market based.
Labour Unions
Their activity today centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions. In 2010 11.4%(16.1 million) of workers belonged to one or the other union party.
CASE STUDY
In-N-Out Burger Chain Faces Discrimination Class Action Lawsuit
Oakland, CA: The In-N-Out Burger chain is facing an discrimination class action lawsuit, over allegations that it refuses to hire African Americans and applicants over 40 years of age.
The lawsuit, filed against the Orange County-based company, alleges that two men, both African Americans over 40 years old, tried to get jobs at the chain's San Francisco and Oakland outlets but were rejected, the lawsuit claims, despite the advertising of open positions at the two restaurants.
The lawsuit also alleges that both men were qualified for the positions they sought but were told that In-N-Out was not hiring even though both were told beforehand that the stores were hiring.
Conclusions
Very Complex Country due to conflict between Federal and State legislation Individual Legal actions and No win, no fee causes legal problems Soaring Cost of health care is an issue
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