REG 16 - Regulation of Business Employment, Environment, & Antitrust Flashcards
Workers’ Compensation Laws
Correct! Although the elimination of unnecessary lawsuits was an objective of workers’ compensation laws, its primary purpose was ensure that workers would be able to obtain benefits for all job-related injuries & illnesses without having to prove employer fault. (Employers are strictly liable without regard to whether or NOT they are at fault)
- Workers’ compensation laws does not prevent a worker from suing a party other than the employer who is responsible for the worker’s injury or illness.
- Generally, an employee is unable to obtain additional compensation from the employer beyond workers’ compensation-authorized benefits.
- Does NOT apply to independent contractors.
Under Worker’s Compensation Law, a worker is still entitled to collect benefit if one of what three conditions apply? (CAN)
A worker is entitled to collect benefits under these laws even if one or more of the following conditions is applicable:
- Contributory Negligence - the employee’s own carelessness in violating workplace rules was a contributing factor in causing the injury or illness.
- Assumption of Risk - The employee was aware of the dangers of the occupation & signed a waiver liability.
- Negligence of Fellow Employee - The injury or illness resulted from the carelessness or recklesness by another employee.
Employer’s Defenses to Worker’s Comp?
(BIND)
A worker will not be able to collect under worker’s compensation if one of the following conditions is applicable (BIND):
- Brawling
- Intoxication
- Not job-related - ex: driving to work
- Deliberate self-infliction - ex: intentionally attempts to become injured or ill
What does Worker’s Comp cover?
Workers comp guarantee an employee compensation for a job-related injury or illness, but at the same time prohibits the employee from suing their employer in an attempt to collect additional sums. Worker’s comp covers:
- Occupational disease
- Aggravated disease
Benefits
- Payment to spouse
- Burial expenses
- Prosthetic device
FUTA
Federal Unemployement Tax Act (FUTA)
- A tax paid only by the employer, calculated as a percentage of wages paid, in order to have benefits available for employees who are terminated unless:
- Unemployment benefits are fully taxable.
- Benefits are NOT available if employee:
- Retires or quits volunatary (business reversals - ok)
- Refuses to accept equivalent work that has been offered
- Was fired for illgegal activity
FICA
Federal Insurance Contributions Act (FICA) - A tax paid (6.2%) by both employer & employee used to pay Social Security benefits in the form of old age retirement benefits, benefits to survivors & divorced spouses, payments for disability, & to disabled children, and Medicare (1.45%) benefits.
- 6.2% - Social Security
- 1.45% - Medicare
ERISA (3)
(know the three areas)
Employment Retirement Income Security Act (ERISA) - applies to employers who have chosed to provide private pension benefits to employees (law does NOT require such benefits). There are requirements related to:
- Participation - plan must cover all employees that fall within the same class
-
Vesting
- Employee - amounts paid into plans must be vested immediately.
- Employer - amounts paid into plans must vest within a reasonable time, generally 5 years
- Funding - the employer must remit to an independent trustee amounts collected from employees & amounts owed by the employer within a reasonable period of time.
National Labor Relations Act (NLRA)
NLRA - Guarantees employees the right to form unions & demands good faith collective bargaining by both sides in disputes. This law applies to bargaining involving wages as well as vacation & sick pay.
Fair Labor Standards Act (FLSA) (3)
Fair Labor Standards Act - regards to hiring & pay arrangements, which employers are required to:
- Requires a minimum wage
- Prohibits child labor
- Exception: family business or farm
- Overtime compensation over 40 hrs in a week (federal law)
Comprehensive Omnibus Budget Reconciliation Act
(COBRA)
Allows employees to continue medical, dental, & optical coverage provided by their employer after termination of employment up to 18 months.
Occupational Safety & Health Act (4)
(OSHA)
- Holds employers responsible for safe work environment
- Requires records to be kept of job-related injuries
- Allows govt inspection based on probable cause (employee complaints may be sufficient)
- May order employer safety improvements & assess fines
Anti-Discrimination Laws
Civil Rights Act of 1964
Age Discrimination in Employment Act
Americans w/ Disabilities Act
Whistle Blower Protection Act
Federal Employee Polygraph Protection Act
- Civil Rights Act of 1964
- Race, color, religion, sex or national origin
- Age Discrimination in Employment Act
- Protects workers over 40
- Americans w/ Disabilities Act
- Requires reasonable accomodation for disabilities of employees & customers
- Whistle Blower Protection Act
- Protects federal employees from retaliation by employers for blowing the whistle on employers
- Federal Employee Polygraph Protection Act
- Private employers may not require to take a lie detector tests
- Govt employees are exempt
- Private employers may not require to take a lie detector tests
Antitrust Laws
Sherman Act
Clayton Act
Federal Trade Commission Act
Robinson-Patman Act
Celler-Kefauver Act
Antitrust - To prevent large corps from taking actions that may be in restraint of trade, several antitrust have been passed to promote fair competition. Most significant are:
- Sherman - illegal to monopolize an industry
- Clayton - prevents price discrimination between different purchasers & prevents mergers/aquisitions that will lessen the competition
- Federal Trade Commission - “cease & desist” orders to large corps that are involved in unfair trade practice
- Robinson-Patman - amends Clayton act, prohibits price discrimination when selling goods to different distributors (chain vs. local stores)
- Celler-Kefauver - making aquisition of assets of entites that are not direct competitors subject to Clayton Act
Environmental Regulations
Environmental Protection Act (EPA)
CERCLA
Federal Water Pollution Control Act
Clean Air & Noise Pollution Acts
National Environment Policy Act
Environmental Protection Act - gives power to EPA to establish regulations & pursue civil/criminal actions againts corps responsible for damages to the environment.
CERCLA - Comprehensive Environmental Response, Compensation & Liability Act, known as the Superfund Law, authorizes govt to clean up dangerous toxic sites & demand costs from companies responsible for waste.
Federal Water Pollution Control Act - allows EPA to regulate any actions that may harm public waters.
Clean Air & Noise Pollution Acts - requires use of the best available technology by companies to reduce harmful emissions & excessive noise.
National Environment Policy Act - helps insure that various environmental laws are followed.
