In: Economics
1.What is employment at will? List exemptions to employment at will. 2. List three federal acts that are important to employment law in the United States and briefly describe the effect of each.
1. What is employment at will?
Employment at will means an employee can be terminated at any time without any reason, explanation, or warning. It also means an employee can quit at any time for any reason.
List exemptions to employment at will
Public Policy : Employers are not able to fire an employee if the action violates their state’s public policy exception. In this case, employers are prohibited from firing or seeking damages from an employee if the employee’s reason for leaving benefits the public. In the United States, only seven states do not recognize public policy as an exception to this rule. These states include Alabama; Georgia; Louisiana; Maine; Nebraska; New York; Rhode Island, and Florida
Documentation : Most employers state clearly in their employee handbooks that employees are at will. While this is not explicitly necessary, it can help prevent disputes from arising later on. Other employers may have new employees sign a document acknowledging that they are at-will employees and they agree to all conditions that come with that status.
2. List three federal acts that are important to employment law in the United States and briefly describe the effect of each.
1. The minimum Wage : The Fair Labor Standards Act ensures that American workers receive a minimum wage for their work. Since 2009, most private and public employers have had to pay staff members at least $7.25 per hour, although some legislators have tried to increase that amount. In addition, the FLSA assures that non-exempt workers receive time-and-a-half for any overtime they perform.
2. Workplace safety : The Occupational Safety and Health Act of 1970 went a long way toward minimizing dangers in the American workplace. The legislation created a number of specific safety provisions, including industry-specific guidelines for construction, maritime and agricultural jobs. It also includes a “General Duty Clause" that prohibits any workplace practice that represents a clear risk to workers. The Occupational Safety and Health Administration has the primary responsibility for enforcing the law, although state agencies may also have a role in implementing certain provisions. While the protections affect most employees, self-employed individuals and those working on small family farms are among those exempted from the law.
3. Social Security : President Franklin Roosevelt signed the Social Security Act into law in 1935, providing retired and disabled Americans with a financial safety net. Today, more than 59 million people receive Social Security checks each month, with an average amount of $1,294 for retirees and $1,146 for citizens with disabilities.
These benefits are funded by a payroll tax, which may appear as “OASDI” on your pay stub. Employers and employees each contribute an amount worth 6.2% of the staff member’s earnings, up to a maximum annual amount. However, self-employed individuals bear the full cost of the tax, kicking in 12.4% of their income.