COURSE DESCRIPTION This course introduces basic concepts and definitions of employment law. Federal statutes applicable to employment law are also reviewed. This is the first course in a series of courses on employment law. Rev 2.0 7/2011 Page 1 of 9
COURSE TITLE: Introduction to Employment Law Author: Rhonda M. Pitchford, JD Department Head and Instructor Postsecondary Paralegal Services Program Southfield, MI Number of Clock Hours Credit: 1.0 Course # 1228014 P.A.C.E. Approved: Yes X No OBJECTIVES Upon completion of this continuing education module, the professional should be able to: 1. Provide a definition of employment law. 2. Distinguish between employment law and labor law. 3. Define an employer and an employee. 4. Define an independent contractor. 5. Define at will employee and for cause employee. 6. Provide an overview of the federal laws that apply to employment law. Disclaimer The writers for NCCT continuing education courses attempt to provide factual information based on literature review and current professional practice. However, NCCT does not guarantee that the information contained in the continuing education courses is free from all errors and omissions. Page 2 of 9
INTRODUCTION It is important for employees to understand what employment law covers and the basic definitions within this area of law so that they know basic information if potential issues arise in their relationship with their employer. Further, it provides the employees information so they may communicate effectively with their employer to resolve potential issues. WHAT IS EMPLOYMENT LAW? Employment law covers all the rights and obligations within the employer - employee relationship. These rights and obligations extend to current, potential, and future employees. The rights and obligations between the employer and the employee include a variety of issues such as wrongful termination, healthcare benefits, wages, pension plans, retirement, occupational safety and health, and leave of absences. WHAT IS THE DIFFERENCE BETWEEN EMPLOYMENT LAW AND LABOR LAW? Many people use employment law and labor law interchangeably. However, labor and employment law differ in the areas covered. Labor laws mainly deal with the relationships between employers and unions. Labor laws were created to make the bargaining power between employers and the unions equal. Labor laws were also created to prevent employers from engaging in unfair labor practices. Employment law, on the other hand, is broader and encompasses all of the issues in the employer - employee relationship such as the issues mentioned above. DEFINITIONS Employer: Black s Law Dictionary defines an employer as: An individual, corporation or a partnership that is in a relationship with an employee. An employer is one who employs the services of others, one for whom employees work and who pays their wages or salaries. Employee: Black s Law Dictionary defines an employee as: A person in the service of another under any contract for hire, express or implied, oral or written, where the employer has the power or right to control or direct the employee in the material details of how the work is to be performed. The term for this type of employee is a common law employee. A common law employee differs from an independent contractor employee. Page 3 of 9
Independent Contractor: Black s Law Dictionary defines as: One who is in exercise of an independent employment contract. He is entitled to do work according to his own methods and is subject to his employer s control only as to end product or final result of his work. One who renders service in course of self-employment or occupation, and who follows employer s desires only as to result to work and not as to means whereby it is to be accomplished. It is important to understand the difference between a common law employee and an independent contractor because the employer s responsibility to each type of employee differs. At will employee: An employee can also be an at will or a for cause employee. As in the common law and independent contractor employee, the employer s responsibilities to an at will and for cause employee also differs. In an at will employee - employer relationship, the employee may terminate his/her relationship for any reason. As well, the employer may also terminate the employment for any reason except for one that may be discriminatory in nature. For example, an employer may terminate employment if the employee wears a blue shirt. However, the employer may not terminate an employee because the employee is a woman. For cause employee: A for cause employee is in a contractual relationship with the employer. The contract between the employee and employer will contain a clause that the relationship may not be terminated except for cause. For example, in a for cause contractual relationship, the contract may state that the employee will only be fired if s/he does not fulfill a certain sales quota within three months of employment. If the employee fails to comply with this provision in the contract, the employee will be terminated. STATUTES THAT GOVERN EMPLOYMENT LAW Black s Law Dictionary defines a statute: As a formal written enactment of a legislative body, whether state, federal, city or county...the written will of the legislature, solemnly expressed according to the forms necessary to constitute it the law of the state. In other words, statutes are laws. Both federal and state statutes govern employment law and cover many areas such as wrongful termination, healthcare benefits, wages, pension plans, retirement, occupational safety and health, and leave of absences. Every state must follow the federal statutes governing employment law. However, the states can create statutes that are more restrictive than the federal laws but the statutes may not contradict federal law. Page 4 of 9
FEDERAL STATUTES RELEVANT TO EMPLOYMENT LAW Below is an outline of some of the federal statutes that are relevant to employment law. Because state statutes may vary, check the state s local agencies for more information. Age Discrimination in Employment Act of 1967 (ADEA) This statute prohibits discrimination in employment against individuals who are at least 40 years of age but less than 65 years old. Americans with Disability Act of 1990 (ADA) This statute prohibits employers from discriminating against qualified individuals based on disabilities for hiring, promotions, pay, advancements, job assignments, benefits and other employment practices. Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) This statute establishes that employers must offer continued healthcare insurance benefits at the group rate to employees and their qualified beneficiaries when employees lose work hours or their jobs. Equal Pay Act of 1963 This statute prohibits discrimination between men and women who work jobs that require equal skill, effort, and responsibility under similar working conditions. Fair Labor Standards Act (FLSA) This statute seeks to protect the worker by establishing minimum wages, overtime pay, recordkeeping, and standards for child labor affecting full-time and part-time workers in private sector employment, as well as in federal, state, and local governments. Family Medical Leave Act (FMLA) This statute provides certain employees with up to 12 weeks of unpaid leave per year, without losing their jobs or group health benefits during the leave. Health Insurance Portability and Accountability Act (HIPAA) This statute requires insurance companies to cover employees and their dependants who were previously covered by group health insurance. Occupational Safety and Health Act of 1970 (OSHA) This statute regulates workplace health and safety standards. It also provides a protection that makes it unlawful for employers to retaliate against employees for exercising their rights under the Act. Page 5 of 9
Pregnancy Discrimination Act of 1978 This is an amendment to the Civil Rights Act of 1964 to prohibit sex discrimination based on pregnancy, childbirth, or related medical conditions. Title VII of the Civil Rights Act of 1964 This statute prohibits discrimination in compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin. Whistleblower Act This statute makes it illegal for employers to retaliate against employees who report violations of laws to the proper authorities, participate in legal proceedings under the laws, or refuse to break the laws. CONCLUSION Employment law covers the relationship between an employer and an employee, which includes the rights and obligations between the employer and the employee. The duties and obligations are defined by the type of employee as well as the federal and state statutes that govern each employment issue. For more information on the federal statutes in this area of law, check with the Department of Labor and Equal Employment Opportunities Commission. This is for educational use only and it is not intended to be legal advice. REFERENCES Black, Henry Campbell M.A. Black s Law Dictionary. 1991. West Publishing Co. Samuelson, Beatty. Essentials of Business Law. 2005. West Legal Studies in Business, part of Thomson Corporation. Miller, Canfield, Paddock and Stone. The Employment Law Handbook, the Employment Law Guide for Michigan Employers. 1995. Miller, Canfield, Paddock and Stone, a Professional Limited Liability Company United States Department of Labor. Laws and Regulations. www.dol.gov Page 6 of 9
TEST QUESTIONS Introduction to Employment Law #1228014 Directions: Before taking this test, read the instructions on how to complete the answer sheets correctly. If taking the test online, log in to your User Account on the NCCT website www.ncctinc.com. Select the response that best completes each sentence or answers each question from the information presented in the module. If you are having difficulty answering a question, go to www.ncctinc.com and select Forms/Documents. Then select CE Updates and Revisions to see if course content and/or a test questions have been revised. If you do not have access to the internet, call Customer Service at 800-875-4404. 1. Employment law is the relationship between. a. employees b. employee and unions c. employer and employee d. employers and statutes 2. Labor law is the relationship between. a. employees b. employers and unions c. employee and employer d. employers and statutes 3. An employer is defined as a/n. a. individual b. partnership c. corporation d. All responses are correct 4. A for cause employee may be terminated for. a. any reason b. excessive tardiness only c. a specific stated reason d. a discriminatory reason Page 7 of 9
5. An at will employee may be terminated for. a. any reason except discriminatory practices b. excessive absenteeism only c. productivity reasons only d. quality-related work issues only 6. An independent contractor is. a. an employee b. an at will employee c. hired for specific purpose d. All responses are correct 7. Which of the following govern employment law? a. State laws only b. Federal laws only c. Both State & Federal laws d. Labor laws 8. State statutes can federal statutes. a. revise b. overrule c. restrict d. contradict 9. State statutes cannot federal statutes. a. copy b. compare c. restrict d. contradict 10. A statute is a/n. a. policy b. law c. recommendation d. contract Page 8 of 9
11. Federal statutes in employment law regulate which of the following? a. Wages b. Pension plans c. Health and safety d. All responses are correct 12. Which statute provides up to 12 weeks of unpaid leave per year? a. Equal Pay Act b. Family Medical Leave Act c. Fair Labor Standards Act d. No responses are correct 13. Which statute regulates the health and safety of employees? a. OSHA b. FSLA c. Whistleblower Act d. Equal Pay Act 14. Which statute was amended to include the pregnancy discrimination act? a. OSHA b. Civil Rights Act c. FMLA d. Americans with Disability Act 15. Which statute regulates equal pay for men and women? a. Equal Pay Act b. Pregnancy Discrimination Act c. Fair Labor Standards Act d. Age Discrimination in Employment Act *end of test* Page 9 of 9