Unit Eight SeminarUnit Eight SeminarHR420: Employment LawHR420: Employment Law

Unit Eight SeminarUnit Eight SeminarHR420: Employment LawHR420: Employment Law

Louis Lopez, Jr., Ph.D.Instructor

School of Business and Management

June 12, 2011

Employment Law:New Challenges in the Business Environment

Chapter 18

Unions and Collective Bargaining Agreements

History and Purpose of UnionsHistory and Purpose of Unions

• First unions organized in 1820s during economic depression

• Unions were against excessive taxation, prison labor as competition, and debtors’ prison

• Fought for a 10 hour workday• Argued government protected upper class,

employers, and management• Strikes were unions main weapon against

employer

The Sherman Antitrust ActThe Sherman Antitrust Act

• Enacted in 1890• Initially applied to any activity interrupting the

free flow of commerce• Citizens hoped the act would limit the power of

monopolistic companies• Instead big business used it against employees• The term “every business combination” included

unions

Clayton ActClayton Act

• Enacted in 1914, strengthening Sherman Act• Section 20- injunctive relief not granted in labor

disputes unless intended property damage• Employers could now file application for

injunctive relief against their employees, bypassing the federal government

• Courts claimed Clayton Act did not apply to: individuals who strike because they are no longer employees, union organizers were not employees, and yellow-dog contracts

Yellow-dog ContractsYellow-dog Contracts

• Stipulation mandated by employer that the employee will not join a union

• Upheld by courts in strict opposition to the legal principle of noninterference with contractual business relations

• In effect until the 1926 Railway Labor Act and 1932 Federal Anti-Injunction Act

Railway Labor ActRailway Labor Act

• Enacted in 1926. It outlawed yellow-dog contracts

• Prohibited an agreement of non-union membership as condition of employment

• Strengthened right to peaceful strike • Instituted the National Mediation Board (NMB)

to encourage voluntary mediation between management and labor

• If no resolution, NMB would propose binding arbitration

Norris-LaGuardia ActNorris-LaGuardia Act

• a.k.a. the Federal Anti-Injunctive Act of 1932• Section 1- Relieved federal courts from granting

injunctions in labor disputes• Marked end of using the Sherman and Clayton

Acts for injunctive relief against labor

National Labor Relations ActNational Labor Relations Act

• A.K.A the Wagner Act was enacted in 1935 to ensure employees’ right to organize and participate in unions

• Creation of the National Labor Relations Board (NLRB) had investigatory and enforcement power

• Certified Bargaining Agreements forthcoming• Act does not apply to federal, state, or local

government employees

Taft-Hartley ActTaft-Hartley Act

• A.K.A the Labor Management Relations Act of 1947

• Declared the closed shop illegal• Workers not joining unions could not be

discriminated against• Prohibited the use of coercion by unions to force

workers to join

Collective BargainingCollective Bargaining

• Negotiation process undertaken by a union with management with the intent to develop a contract after resolving labor issues

• Done on behalf on union members and organization i.e. Professional Sports

• The contract A.K.A the collective bargaining agreement is binding for all union members

• Advantage is union has more leverage than the individual employee

Key Terms in a CBAKey Terms in a CBA

• Full-time wages, Overtime Pay, cost of living adjustments in pay

• Minimum hours required for full-time status• Vacation Time, personal days, promotions• Pension benefits, healthcare coverage• Description and classification of jobs, work

schedules• Rules regarding employee behavior, policy

termination committee to handle grievances• Arbitration procedure for contract disputes

Unfair Labor Practices by EmployerUnfair Labor Practices by Employer• Refuse to collectively bargain with the union rep• Discriminate against union members• Retaliate against employees who file grievances

with the union• Interfere with union elections• Unduly influence union members or representatives

Unfair Labor Practices by UnionsUnfair Labor Practices by Unions

• Coerce employees to join unions• Pilfer union dues• Refrain from collective bargaining• Call an illegal strike that will affect the health and

safety of the nation• Block the entrance to employers facility

Future of UnionsFuture of Unions

• Initial struggle rewarded skilled laborers• Recently, many business searching for

areas with lower standard of living and cheaper labor

• General Agreement on Tariffs and Trade (GATT) and the North American Free Trade Agreement (NAFTA) has crippled unions

• Comparative advantage prevails in a global market

• Even happening in the service sector• Computers have caused people to work

longer hours because of more competition

What are your questions or concerns?

What are your questions or concerns?

Employment Law:New Challenges in the Business Environment

Chapter 19

Wage and Hour Regulation

IntroductionIntroduction

• Wage and hour regulation has a twofold purpose:• To set an hourly subsistence wage for workers• To regulate the number of hours individuals have to

work before becoming entitled to overtime compensation of 1.5 times their regular wage

Introduction (cont.)Introduction (cont.)

• Arguments are often made that eliminating the minimum wage would stop manufacturers from relocating to Mexico or overseas

• It is difficult to imagine anyone, except possibly newly arrived immigrants or illegal aliens, working for less than the minimum wage

Human Resource AdviceHuman Resource Advice

• Understand the provisions of the Fair Labor Standards Act

• Pay at least the minimum wage• Compensate employees with overtime pay

after a 40-hour workweek• Recognize that averaging hours worked over

several weeks to avoid time-and-a-half pay for overtime is illegal

• Know the occupations exempted from minimum wage and maximum hours laws

Human Resource Advice (cont.)Human Resource Advice (cont.)

• Avoid hiring illegal aliens who will work for less than the minimum wage

• Refrain from paying workers off-the-books• Appreciate that children may not be employed

during school hours or in certain jobs deemed hazardous

• Learn that children under the age of 14 may work for their parents

• Be aware that children under the age of 14 who engage in athletics and entertainment must have their contracts approved by the court

Fair Labor Standards ActFair Labor Standards Act

• Enacted in 1938 to regulate the minimum hourly wage and the number of hours that have to be worked before overtime pay (40 hours)

• Record keeping is required relating to straight and overtime pay, hourly rate of pay, hours worked each day and each week, sex and occupation

• Students may be paid 85% of minimum wage• Employees who receive tips have a minimum

wage of $2.13 per hour

Minimum WageMinimum Wage

• Has risen through the years, but is not indexed to the cost of living

• July 24, 2007: the Federal minimum wage was equal to $5.85 per hour

• January 1, 2008: California had the highest state minimum wage equal to $8 per hour• San Francisco overall highest minimum wage at

$9.13 per hour

Overtime PayOvertime Pay

• Is not required when the employee is receiving up to 10 hours per week of remedial education that is not specific job training

• Overtime would be required in excess of the 10 hours if this remediation was mandated by the company

• If it were a voluntary after-work program, no pay at all would be required

ExemptionsExemptions

• Certain employees are exempted from the minimum wage and the maximum hour requirements:• Executives• Administrators• Professionals• Sales people• Baby-sitters• Elementary and secondary schoolteachers• Camp counselors if the camp is not in operation for

more than 7 months in the calendar year

Child LaborChild Labor

• Children who are at least 16 years of age may work in any occupation as long as it has not been deemed hazardous by the Secretary of Labor

• Children who are 14 or 15 are not permitted to work in manufacturing, mining and other occupations that interfere with their schooling or their health and well-being

• Children under 14 are not permitted to work unless it is for their parents or approved by the court for entertainment of athletic contracts

What are your questions or concerns?

What are your questions or concerns?

Have a great week Have a great week learning!learning!

Have a great week Have a great week learning!learning!