Employer-employee Law

Question 1

Federal Insurance Contribution Act (FICA)

Answer 1

1. FICA provides workers and dependents with benefits in case of death, disability or retirement.
2. All full-time, part-time, or self-employed (few exemptions) must participate.
3. Funded by a tax on employees and employers; deductible by the employer, not the employee.
4. Provides a number of benefits, including disability pay, retirement pay, survivor’s benefits, dependent’s benefits, and medical benefits under Medicare

Question 2

Unemployment Compensation (FUTA)

Answer 2

1. FUTA is a state run system that provides income to unemployed workers.
2. All employers with quarterly payrolls of $1,500 or more or those who employ at least one employee for 20 weeks in a year must pay a payroll tax (6.0 percent on first $7,000 per year of employee compensation) to fund. 3. Benefits are available to those unemployed through no fault of their own.

Question 3

Workers’ Compensation

Answer 3

1. Workers’ compensation is a state run program providing benefits for work-related injuries.
2. Employers are strictly liable for work related injuries.
3. Workers may not sue the employer, but can sue third parties.
4. The employer pays for coverage, which is deductible by the employer

Question 4

Employment Discrimination

Title VII -

Answer 4

Prohibits discrimination on the basis of race, sex, religion, color or national origin. It is enforced by the EEOC.

Question 5

Employment Discrimination

Equal Pay Act -

Answer 5

Prohibits paying unequal wages based on sex.

Question 6

Employment Discrimination

Age Discrimination Act -

Answer 6

Prohibits discrimination by age against employees over the age of 40 by employers with 20 or more employees.

Question 7

Employment Discrimination

Americans with Disabilities Act -

Answer 7

Prohibits employers of 15 or more employees from discriminating on the basis of physical or mental disability. Requires employers to make reasonable accommodations for disabled workers.

Question 8

Occupational Safety and Health Act (OSHA)

Answer 8

1. OSHA applies to all businesses affecting interstate commerce.
2. The agency can set safety standards and conduct worksite inspections without notice and without a search warrant. Employers cannot retaliate against employees requesting inspections.
3. If a worksite poses an imminent danger, the agency or employees may seek corrective orders from a federal court. The courts may also impose fines

Question 9

Fair Labor Standards Act (FLSA)

Answer 9

1. . The FLSA sets a minimum wage ($7.25 per hour) and an overtime rate (1.5 times the hourly rate) for workweeks of more than 40 hours.
2. The FLSA regulates employment of children outside of agriculture, prohibiting employment of those under 14 except as newspaper deliverers and child actors. It also limits the hours and times 14- and 15-year-olds can work, and prohibits hazardous work by those under 18.
3. The FLSA has some exclusions.

Question 10

National Labor Relations Act (NLRA)

Answer 10

1. NLRA - Prohibits employers from interfering with the right of workers to unionize and bargain collectively for wages.
2. Labor Management Relations Act (Taft-Hartley Act)—Prohibits unions from charging excessive union fees, charging for unperformed services, or calling an improper strike.

Question 11

Employee Retirement Income Security Act (ERISA)

Answer 11

1. If employers have retirement plans, ERISA regulates management and participation in such plans.
2. ERISA sets standards for funding and investing and imposes fiduciary duties on plan managers.

Question 12

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Answer 12

1. COBRA allows former employees to continue employer group health insurance for 18 months at the employee’s expense.
2. COBRA applies to employers with 20 or more employees.