United States of America

Labor and Employment Law

Labour laws typically deal with employer-union relationships. Employment laws typically deal with employer-employee relationships. But the terms are often used interchangeably.

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.

Equality and Discrimination

Civil Rights Act of 1964 prohibits discrimination on grounds of:
Race Colour Sex National Origin Religion

Other legislation:
Equal Pay Disabilities Age

Remedies are to sue.

Compensation for Injuries on the Job

Employers must pay contributions to various funds to compensate employees injured on the job. Under state laws, unemployment insurance applies. Under federal laws, workers in maritime transportation, federal contractors involving exposure to radiation, federal employees and coal miners are entitled to various financial benefits for disability or death.

Rights of Foreign Workers in the United States

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

Other time off

Family and Medical
Federal law, with state additions allows eligible employees to take unpaid time off for treatment or recovery or to care family member

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

Frequency and Method

All methods legal, cash, cheque or credit transfer Frequency determined by State law
Non-exempt generally twice a month on scheduled days Exempts may be paid monthly Typically weekly or biweekly for all

Some States require itemised payslips

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.

Social Security Benefits

Medicare and Medicaid limited
Generally over 65 Pension provided, but very small Disability benefits - waiting time 5 months and expected to last 12 months or death

Sick Pay (short term disability)

No legal entitlement to sick pay Generally provided under market pressure Frequently Insured up to two thirds salary, 3 to 7 waiting days, cover for 13, 26, or 52 weeks Some States now require schemes

Long term disability

Generally insured and follows on short term. Covers employee until 65 Generally 50 67% of earnings up to a maximum (say $10,000)less any social security payments

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

Prescription drugs Vision Mental Health and Substance abuse

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.

Some Of The Laws Are

Agricultural Labour Laws Child Labor Protections Employee Retirement Income Security Act (ERISA) Equal Employment Opportunity Commission (EEOC) Fair Labor Standards Act (FLSA) Family and Medical Leave Act Labor-Management Reporting and Disclosure Act of 1959 Migrant and Seasonal Agricultural Worker Protection Act (MSPA) Unemployment Compensation Law Uniformed Services Employment and Reemployment Rights Act

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.

Two main labor unions

American Federation of LaborCongress of Industrial Organizations (AFL-CIO) Change to Win Federation

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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