chapter 20 employment compensation and worker protection law

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Chapter 20

Employment Compensation and Worker Protection Law


Workers’ Compensation Workers’ compensation

compensates workers and their families for injuries received on the job.

Workers’ compensation acts create an administrative procedure.

Claim is filed with the state agency.

Agency determines legitimacy of the claim.

Benefits are paid according to statutory limits.


Characteristics of Workers’ Compensation

Insurance – most states require employers to purchase insurance to cover claims.

Employment-related injury Injury must arise out of and in the course of

employment. Injuries received off-premises or during

personal time are generally not covered. Exclusive remedy – workers cannot sue

their employers for work-related injuries.


Occupational Safety Occupational Safety

and Health Act was enacted to promote workplace safety.

The Occupational Safety and Health Administration (OSHA) enforces the Act.


Specific and General Duty Standards

Specific duty standards Address specific safety problems Examples include safety requirements for

equipment, maximum exposure levels General duty standards

All employers must provide a work environment free from recognized hazards that are causing or are likely to cause death or serious physical harm.


Fair Labor Standards Act (FLSA)

Child labor restrictions Minimum wage Overtime pay

Nonexempt employee must be paid one-and-one-half times their regular pay for each hour worked in excess of 40 hours in one week.


Family and Medical Leave Act (FMLA)

FMLA guarantees workers unpaid time off for medical emergencies.

Applies to companies with 50 or more employees and government employees.

An employee must have worked for employer for at least one year.


FMLA Leave Employers must provide

up to 12 weeks unpaid leave for:

Birth of and care for a child

Placement of a child with employee for adoption or foster care

A serious health condition Care for spouse, child, or

parent with a serious health problem


Consolidated Omnibus Budget Reconciliation Act (COBRA)

Employee of a private employer or employee’s beneficiaries must be offered the opportunity to continue group health insurance after his or her employment has ended.

Employee must pay the group rate premium in order to continue coverage.


Employee Retirement Income Security Act

Requires pension plans to be in writing Plan manager owes a fiduciary duty in

managing the fund. No more than 10% of plan assets may be

invested in the sponsoring employer’s securities.

Establishes rules for vesting of employee’s interest in employer contributions to the plan.


Government Programs Unemployment compensation

States administer programs and set eligibility requirements.

To be eligible, applicants must be able and available for work and seeking employment.


Government Programs Social Security

benefits include: Retirement benefits Survivors’ benefits Disability benefits Medical and

hospitalization (Medicare)

chapter 20 employment compensation and worker protection law

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