Speaker 1: HR Basics is a series of short courses designed to highlight what you need to know about a particular human resource management topic. In today's HR Basics, we explore employment law with an overview of the laws and regulations pertaining to the management of people in organizations. Employment regulations derive from laws passed by Congress, state legislatures, and local governing bodies. They also originate from executive orders of the President of the United States to manage the operation of the federal government and contractors. These regulations commonly focus on fair treatment of people in the workplace. These regulations influence employee contributions to organizational performance by guiding managers in the management of employees. Nearly all employment laws can be categorized in four areas of the regulatory environment, including equal employment, total rewards, employee safety and health, and labor relations. To begin, let's focus primarily on regulations in the form of equal employment opportunity, known as EEO laws, and other regulations related to the fair treatment of employees. Equal employment opportunity laws prohibit specific types of job discrimination in the workplace. EEO laws and executive orders are intended to eliminate employment discrimination. The EEOC, or Equal Employment Opportunity Commission, oversees compliance with these laws. The primary objective of anti-discrimination legislation is to ensure that individuals are given equal opportunity in the workplace. Title VII of the Civil Rights Act outlaws employment discrimination on the basis of race, color, national origin, sex, and religion in any aspect of employment, from hiring to firing and everything in between. These traits are called protected characteristics and referred to as protected classes. Discriminatory practices can typically be grouped under one of four categories. Disparate treatment, where an individual is treated differently because of the characteristic that defines the protected class. Disparate impact, a more subtle and usually unintentional form, also known as adverse impact. Harassment, which is unwanted and unwelcome treatment because of a protected class. And retaliation, which prohibits employers from retaliating against an employee for making a complaint of harassment or discrimination. Two agencies oversee equal employment regulations. The Equal Employment Opportunity Commission, or EEOC, is responsible for developing guidelines and overseeing compliance with most of the anti-discrimination laws. The Office of Federal Contract Compliance Programs, known as the OFCCP, is responsible for the same activities relative to executive orders. Additional laws regulate compensation and benefits. Over the course of time, the administration of employee compensation has been regulated by federal, state, and local governments. Let's take a brief look at the primary compensation and benefit employment regulations you need to know as a human resource professional. The Fair Labor Standards Act, known as the FLSA, is administered by the Wage and Hour Division, or WHD, of the Department of Labor. The Act establishes standards for minimum wage, overtime pay, record keeping, and child labor. These standards affect more than 130 million workers, both full-time and part-time, in private and public sectors. Equal pay laws provide that no employer discriminate between employees on the basis of sex by paying wages to employees at a rate less than that of the opposite sex. Although the Equal Pay Act was passed more than 50 years ago, a gender pay gap still exists. For example, in 2012, females were earning only 77 cents for every dollar a male was earning. The Lilly Ledbetter Fair Pay Act requires that the 180-day statute of limitations for filing an equal pay lawsuit regarding pay discrimination resets with each new paycheck affected. Workplace Safety Law consists of federal and state regulations imposed on businesses in an effort to keep employees safe from harm. These rules apply to nearly all employers. Standards are in place to reduce the risk of accidents and illnesses in the workplace, and government agents have authority to investigate violations and issue citations for noncompliance. Employees are subject to monetary fines and in some cases imprisonment and other criminal penalties. The Occupational Safety and Health Act of 1970 was enacted to ensure the health and safety of workers would be protected. On December 29, 1970, President Nixon signed the Occupational Safety and Health Act of 1970, known as the OSHA Act, into law establishing OSHA, or the Occupational Safety and Health Administration. Since then, employee safety and health has been dramatically improved. Every employer that is engaged in commerce or has one or more employees must comply with the Act. The Occupational Safety and Health Act established three agencies within the Department of Labor to oversee various aspects of workplace safety. The Occupational Safety and Health Administration, known as OSHA, administers the provisions of the law, conducts workplace inspections, and works with companies to improve worker safety. The National Institute for Occupational Safety and Health, known as the NIOSH, is a supporting body that conducts research and develops safety standards. Finally, the Occupational Safety and Health Review Commission, or OSHRC, reviews OSHA enforcement actions and addresses disputes between OSHA and employers that are cited by an OSHA inspector. The Occupational Safety and Health Administration is the federal agency responsible for protecting the health and safety of workers. OSHA makes sure that employers follow occupational safety and health regulations and keep the workplace safe. Workers' Compensation Law is a system of rules in every state designed to pay the expenses of employees who are harmed while performing job-related duties. Employees can recover lost wages, medical expenses, disability payments, and costs associated with rehabilitation and retraining. The system is administered by the state and financed by mandatory employer contributions. States have enacted workers' compensation laws to replace traditional personal injury litigation to remove the risk for both the employee and the employer. Laws regarding labor relations maintain relationships with employees organized by labor unions, including the establishment, negotiation, and administration of collective bargaining agreements. Three acts passed over a period of 25 years constitute the core of U.S. labor law – the Wagner Act, the Taft-Hartley Act, and the Landrum-Griffin Act. Let's take a look. The economic crisis of the early 1930s and the continuing restrictions on workers' abilities to organize into unions led to the passage of landmark labor legislation, the Wagner Act in 1935. Later acts reflected other pressures and issues that required legislative attention. The Wagner Act declared, in effect, that the official policy of the U.S. government was to encourage collective bargaining. Specifically, it established the right of workers to organize free from management interference. Workers were provided with the right to participate or not participate in union membership. The basic provisions of the law, spelled out in Section 7, protect employees' rights as follows. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing. Employees also have the right to engage in other concerted activities for the purposes of collective bargaining or mutual aid and protection. Employees shall also have the right to refrain from any or all such activities except to the extent that an agreement requires membership in a labor organization as a condition of employment. Enforcement of the Wagner Act was assigned to the newly created National Labor Relations Board known as the NLRB, and today, the NLRB administers all provisions of this and all other subsequent labor laws. The primary functions of the NLRB include conducting union representation elections, investigating complaints by employers or unions through its fact-finding process, issuing opinions on its findings, and prosecuting violations in court. The five members of the NLRB are appointed by the President of the United States and are confirmed by the U.S. Senate. The Labor Management Relations Act, better known as the Taft-Hartley Act, was passed in 1947 as a means to offset the pro-union Wagner Act by limiting union actions. It was considered to be pro-management and became the second major labor law. The new law amended or qualified in some respect major provisions of the Wagner Act and established an entirely new code of conduct for unions. The Taft-Hartley Act confirmed employers' Section 7 rights and further protected them from restraint by unions. The third major labor law in the United States, the Landrum-Griffin Act, was passed in 1959 to protect the democratic rights of union members. The need for these member protections grew from instances of corruption within Teamsters and other unions. Under the Landrum-Griffin Act, unions are required to establish bylaws, make financial reports, and provide union members with a Bill of Rights. The law appointed the U.S. Secretary of Labor to act as the watchdog of union conduct. Understanding employment law is critical for employers and employees. The four categories of employment law—equal employment, total rewards, employee safety and health, and labor relations—help frame understanding employees should know about their rights so that they are treated fairly. And employers should understand employment law to avoid legal action resulting from ignorance or lack of knowledge.