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econ 448 > ch 17 > Flashcards

ch 17 Flashcards

1
Q

3 branches of gov’t

A
  • legislative
  • executive
  • judicidal
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2
Q

legislative

A
  • headed by congress
  • enacts/passes laws
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3
Q

executive branch

A
  • headed by president
  • enforces laws
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4
Q

judicidal branch

A
  • headed by supreme court
  • interprets law
  • supreme court is the court of final appeal
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5
Q

1938: Fair Labor Standards (FLSA)

A

sets min wage, hours worked, overtime; prohibits child labor

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6
Q

1963: equal pay act

A

equal pay for men and women doing ‘substantially similar’ work

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7
Q

title VII of civil right act of 1964

A

prohibits discrimination on basis of race, sex, color, religion, OR national origin

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8
Q

1967: age discrimination in employment act (ADEA)

A

protects employees 40 and older from age discrimination

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9
Q

1978: pregnancy discrimination act (PDA)

A

pregnancy must be covered as a medical condition

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10
Q

1990: american w/ disabilities act (ADA)

A

must accommodate a person able to fulfill ‘essential elements’ of a job

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11
Q

1993: family and medical leave act (FMLA)

A

up to 12 weeks of unpaid leave for family/medical emergencies

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12
Q

2000: worker economic opportunity act

A

overtime pay does not have to include a stock plan income

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13
Q

2009: lilly ledbetter fair pay act

A

employers liable for pay loss resulting from discrimination

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14
Q

FLSA
- which employees are covered?
- what are the major provisions included?

A
  • Covers all employees of companies engaged in interstate commerce or in the production of goods for interstate commerce.
  • Major provisions include: minimum wage, hours of work (including overtime), and child labor. Records must be kept of employees, their hours worked, and their pay
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15
Q
  • min wage rate
  • training wage
A
  • FLSA establishes a minimum wage of $7.25 per hour effective July 24, 2009.
  • FLSA also permits a lower “training wage”:
    - paid to workers under age of 20 for up to 90 days
    - approximately 85% of minimum wage
    - Tipped wages
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16
Q

how many states have minimum wages higher than federal states?

A

over half

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17
Q

if state and federal laws cover the same job which rate is used?

A

the higher rate

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18
Q

do cities and countries have min wage ordinances?

A

Yes!

as of july 1, 2022, chicago:
- 15.40/h for employers w/ 21 or more workers
- 14.50/h for employers w/ 4-20 workers

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19
Q

tipped wages

A
  • According to the DOL, a tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips.

-An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage.

  • If the employees’ tips combined with the employers’ direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference.
    • Many states require higher direct wage amounts for tipped employees
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20
Q

overtime and hours of work

A
  • FLSA requires overtime rate at 1.5 times employees’ usual hourly rate for time spent on work above 40 hours/week.
    - The usual hourly rate includes regular bonuses, and piece-rate payments.
    - Stock plan income is exempted; gifts or special-occasion bonuses are not included
21
Q

computing overtime pay:

An employee works at a manufacturing company and worked 50 hours last week. The employee’s base rate of salary is $12 per hour, and this employee also earned a weekly bonus of $40 last week. How much overtime pay should this employee receive for the last week?

A

pay for 40 hrs: 40*12= 480 + 40 = $520

hourly rate: 520/40= $13

overtime rate: 13*1.5 = $19.50

overtime pay: $19.50*10= $195

total pay for week: $520 + $195 = $715

22
Q

exempt employees

A

managers, outside salespeople, and other employees not covered by FLSA requirement for overtime pay.
- Salary test: $684/week

23
Q

nonexempt employees

A

employees covered by FLSA requirements for overtime pay
- Manual laborers or other blue-collar workers;
- Police, firefighters, paramedics, and other first responders

24
Q

when is overtime pay required?

A
  • Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than 40 hours.
  • If the employer knows the employee is working overtime but does not pay overtime rate, the employer may be violating the FLSA
25
child labor
- Under 18 cannot work in hazardous occupations defined by DOL (such as meat packing and logging). - Under 16 cannot work in jobs involving interstate commerce, except for a parent or guardian. - Exemptions include non-harzardous jobs for a business entirely owned by the child’s parents or guardian, baby-sitting, acting, and delivering newspapers
26
living wage
- NOT part of FLSA. - Minimum wage tailored to living costs at local levels. - Narrower coverage than minimum wage laws: - cover only city (or state) employees, or state/city contractors; - or cover only base wages; - may require health insurance, vacations, sick pay, job security, and provide incentives to unionize
27
prevailing wage laws
Prevailing wage laws set pay for work done to produce goods and services contracted by the federal government. Government-defined prevailing wage: - The minimum wage that must be paid for work done on covered government projects or purchases.
28
employee or independent contractor -- Employers must pay:
- Social Security, unemployment and workers compensation taxes on wages and salaries. - Unless the worker is an independent contractor
29
how to classify employee or independent contractor?
Tax law (by IRS) and ERISA are relevant. Two general criteria - How much control the firm exercises. - The type and permanency of the relationship
30
equal employment opportunity (EEO) - definition - enforcement agency
EEO: the condition in which all individuals have an equal chance for employment, regardless of their race, color, religion, sex, age, disability, or national origin. Enforcement agency: EEOC - Responsible for enforcing most of EEO laws. - Complaints must be filed within 180 days of incident. - EEOC has 60 days to investigate complaint
31
Title VII of the Civil Rights Act of 1964 - what is it? - which organizations does it apply to?
Major law regulating employment opportunity in the US. Title VII of the Civil Rights Act: - Prohibits employers from discriminating based on race, color, religion, sex, national origin. - Applies to organizations that employ 15 or more. - Employers may not retaliate
32
other EEO laws
- The 1967 Age Discrimination in Employment Act (ADEA) - 1990 Americans with Disability Act (ADA) - Equal Pay Act (1963) - The Lilly Ledbetter Fair Pay Act (2009)
33
evidence of discrimination
- disparate treatment - disparate impact
34
disparate treatment
Differing treatment of individuals based on the individuals’ race, color, religion, sex, national origin, age, or disability status
35
disparate impact
A condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities. - Four-Fifths Rule: Evidence of discrimination if the hiring rate for a minority group is less than four-fifths the hiring rate for the majority group
36
two types of PAY discrimination:
- access discrimination - valuation discrimination
37
access discrimination
the denial of particular jobs, promotions or training opportunities to qualified candidates on the basis of sex, race, and other protected classes
38
valuation discrimination
looks at the pay women and minorities receive for the jobs they perform (hinges on the standard of equal pay for equal work) can occur when men and women hold different jobs, with the same comparable worth. - Equal pay for comparable worth. - Also called pay equity or gender pay equity. - Not supported by federal law but several state laws require a comparable worth standard
39
equal pay act of 1963 - basic def - when are jobs considered equal? - legal pay differences?
part of FLSA Forbids wage discrimination on the basis of gender if employees perform equal work in the same firm. Jobs are considered equal if requiring equal skill, effort, and responsibility, performed under similar working conditions. Pay differences legal if affirmative defense: - Seniority; Merit or quality of performance; Quality or quantity of production; or some factor other than sex
40
equal -- Supreme Court
The Supreme Court ruled that the equal work standard required only that jobs be substantially equal, not identical. When job descriptions differed from actual employee duties, the courts held that the actual work performed must be used to decide whether jobs are substantially equal
41
skill
experience, training, education, and ability as measured by job performance requirements
42
effort
Mental or physical, the degree of effort actually performed on the job
43
responsibility
The degree of accountability required in the job performance
44
working conditions
physical surroundings and hazards of a job; inside/outside, heat/cold, and poor ventilation
45
For an employer to support a claim of unequal work, the following must be met
The effort/skill/responsibility must be substantially greater in one of the jobs compared. Tasks with the extra effort/skill/responsibility must consume a significant amount of time for all employees’ wages in question. Extra effort/skill/responsibility must have a value commensurate with the pay differential
46
pay discrimination and dissimilar jobs -- Supreme Court
The Supreme Court determined that pay differences for dissimilar jobs may reflect discrimination. - Courts uphold the use of market data to justify pay differences in different jobs. - Or, find a standard to compare the value of jobs (jobs of comparable worth) - It must permit dissimilar jobs to be declared equal. - It must permit pay differences for dissimilar jobs that are not comparable. - Job evaluation has become that standard
47
a proactive compensation manager can:
- join professional association - to stay informed on emerging issues - to act in concert to inform and influence public and legislative opinion - constantly review compensation practices and their result - should consult w/ legal counsel
48
what is the goal of a good pay system and legislation?
fair treatment

econ 448 (5 decks)

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