Chapter 15Employment and Labor RegulationsI. Employment at Will: You can be fired or quit at any time. Vicarious Liability A. Review of Basic Principle: Pg. 402B. Public Policy ExceptionsA. Refusing to commit an illegal actB. Performing a public dutyC. Exercising a public rightD. Whistle-blower laws: Someone who is reporting illegal or bad acts of their employer. Usually employs of federal or state governmentE. NC REDA: Protects employees who engage in certain acts. North Carolina Retaliatory Employment Discrimination Act. EX:Filing a workers compensation claim, jury duty, national guard, parents with children in court, domestic violence. North CarolinaDepartment of Labor. Can recover triple damages, compensation for wages and reinstatementsC. Wrongful/Retaliatory Discharge: Wrongfully fired1. Ballalatak Pg. 403D. Contractual Limits to At Will Employment/Employment contracts Pg. 4021. express contract: Agreed on employment for a certain period oftime. May require just cause for dismissala. noncompete agreements: NC, these agreements must be in writing and supported by consideration, a reasonable with terms, time, and territory. Pg. 404b. Zambelli: Enforceable noncompete agreement Pg. 4052. implied contract: Employer has done or said something that relates that your grounds for dismissal are restricted. Found in the employee handbook Pg. 3893. employee handbooks Pg. 391a. contents: Policies, benefits, and procedures. Creates an implied contractb. creation of express/implied contract limiting at will employment4. implied covenant of good faith and fair dealing: Violated if theemployer made certain representations about the employment and then fired the employeeII. Substance Abuse Pg. 406A. Statistics: 12.3 million American Workers use drugs. 1 in 6 workers have a substance abuse problemB. Issues for Employers: 2.2x more likely to request early dismissal,2.5x more likely to have 8 or more absence, 3x to be late, 4x involved in a workplace accident, 5x to file a workers compensation claim. Reduced productivity, higher insurance and liability for employee injury, costly Pg. 406C. Testing Pg. 406-4071. The Drug-Free Workplace Act: Certify your workplace as drug free2. Federal requirements: Publish and distribute a statement that you do not allow drugs in the workplace, specify consequences, establish drug free awareness programs, require notification with drug related convictions3. State standards for testing: NC Controlled Substance Examination Regulation Act: Gives notice of rights of employees and employers. Department of Labor. 4. Employer substance abuse policies/procedures: An employer can required to take a drug test, can be fired if refused to take the drug test, an employer does not require a written policy on drug testing in NC. Parental consent is not required for drug testing on minors. Must follow testing policy. Employers can screen applicants for a job, test employees on an annual basis or physical exam, testing is written an public and is consisten. (Recommended) Pg. 407III. Worker Safety and Health Pg. 408A. OSHA NC Controlled substance regulation Act. Pg. 4091. Inspections: Routine visits or in response to complaints, health and safety records, interviewing personnel, walk around inspection of the facility, focus on most severe industries such as petrochemicals and construction but also offices and medical settings—Handling blood2. Employee Rights: Cannot be punished for participating in an inspection, can refuse work assignment that may pose a threat to your safety or health3. Penalties: $7,000 for repeated violations, up to $70,000 for each violation. Highest penalty was against BP in 2009, was $81 million Pg. 4104. Caterpillar Logistics: Failure to report a work-relating injury. Pg. 409B. Workers and Toxic Substances Pg. 4111. Attacks on standards: Assure that no employee in the US will suffer material impairment of health or functional capacity, even if exposed to a hazard their entire life.Typically attacked by industry for being expensive, too hard to comply with, also attached by unions saying it is not stringent enough. EX: Asbestos 2. Risks and Benefits: Requirements a. scientific evidence of significant riskb. reasonably necessary standard3. Hazard Communication Standard (HazCom) Pg. 411a. written hazard communication program with a list of hazardous chemicals in the workplace b. labels on chemicalsc. material safety data sheets available to employeesd. informational/training programs for employeesC. Workers’ Compensation: compensation based on accident and safety ratings. Pg. 4111. Operation of programs: A business with 3 or more employees must participate in workers comp NC. Usually heard by state industrial commission2. Benefit to employers: Employer becomes immune to be sued by employees. Pg. 4123. Six objectives: Provide a sure prompt and reasonable remedy to the worker, reduce court costs and delays, prevent financial restrain on charities, reduce payment of fees to lawyers and expert witnesses, encourage employers interest in safety, promote the open discussion of the causesof accidents4. Proof of claim: Show there was an injury that arose in the workplace. Must file the right work at the right time in NC Pg. 4125. Benefit categories: Death benefits, total disability, Permanent Partial Disability benefit, medical expenses will be paid. No limit to medical bills paid, paid 2/3 of an average weekly wage or up to $904 Pg. 4136. Benefits – medical and wages Pg. 4137. Insurance premiums – tied to safety8. Flaws in system? Too expensive, too many awards for PPD,system is fraud, awards are too low, not enough is done to encourage worker safety9. Ways to get out of paying WC insurance? Long: Declare that the employees are really independent contractors. Pg. 413IV. Regulation of Labor Markets Pg. 417A. Restrictions on Immigration Pg. 4171. Immigration Reform & Control Act: A potential worker must provide documentation to prove identity and authorization to work. I-9 form. Passport is best2. E-Verify: For Federal contractors, electronic way of verifying a workers identity, addition to I-9B. Federal Minimum Wage Requirements Pg. 4181. Federal: $7.25 2. North Carolina’s minimum wage: $7.25C. Occupational Licensure and Regulation Pg. 4191. licensing requirements: Protect consumers by guaranteeing a minimum quality of service. Keep number of providers/lawyer for that service low2. state law regulations Pg. 420D. FMLA: Family of Medical Leave Act Pg.