Chapter 12 - Employee Rights

Question 1

Employee vs. Independent Contractor

Answer 1

Employee vs. Independent Contractor:
Test: control. Does employer have ability to control where, when and how the job is done?
Yes –> Employee
No –> Independent Contractor

Question 2

Vicarious Liability

Answer 2

Vicarious Liability: Also called “Respondeat Superior”

employer have legal responsibility for employees’ actions

Question 3

Issue for determining employer liability

Answer 3

Issue for determining employer liability:
Main issue: was employee acting within the scope of employment?

Scope of employment:

1. Was the employee subject to employer’s supervision?
2. Was employee motivated, at least in part, by desire to serve employer’s business interests?
3. Did the problem arise substantially within normal working hours and in a work location?
4. Was it the general kind of act that the employee was hired to perform?

Question 4

Living wage

Answer 4

Living Wage: the wage that can meet the basic needs to maintain a safe, decent standard of living within the community
These needs include shelter (housing) and other incidentals such as clothing and nutrition

Question 5

Minimum wage

Answer 5

Minimum Wage: set by law and can fail to meet the requirements to have a basic quality of life and leaves the family to rely on government programs for additional income

Question 6

Subsistence wage

Answer 6

Subsistence wage: the minimum income necessary for a worker to meet basic biological needs

Question 7

Fair Labor Standards Act (FLSA)

Answer 7

Objectives:

1. Establish minimum wage
2. Flexible ceiling on weekly hours
3. Child labor protection
4. Equal pay regardless of gender

Question 8

Occupational Safety and Health Act (OSHAct)

Answer 8

Occupational Safety and Health Act (OSHAct): requires employers to provide a workplace free of “recognized hazards causing or likely to cause death or serious harm to employees.”

enforced by Occupational Safety and Health Administration (OSHA)

Question 9

Severe Violator Enforcement Program (SVEP)

Answer 9

Severe Violator Enforcement Program (SVEP):
Within OSHA enforcement
1. Focuses on employers with a record of indifference
2. Uses mandatory follow up inspections, press releases, and increased fines

Question 10

Two Types of Pensions

Answer 10

Two Types of Pensions:

(1) Defined Benefit Plan: Traditional Pension, heavily funded by the employer in the later years of an employee’s career.
(2) Defined Contribution Plans, which are evenly funded throughout an employee’s career.

Question 11

Employee Retirement Income Security Act (ERISA)

Answer 11

Employee Retirement Income Security Act (ERISA): regulates employer-provided pension plans. ERISA attempts to ensure that plans are not underfunded

Question 12

Negligence

Answer 12

Negligence: 
three types:
-Hiring
-Training/Supervision
-Retention

Key: employer knew or should have known person was dangerous

Question 13

Ergonomics

Answer 13

Ergonomics: the study of people’s efficiency in their working environment.