Employment Environment Law

Question 1

Describe the Federal Unemployment Tax Act

Answer 1

An employer-paid tax

Must file return and pay even if only one employee works there

Deductible to company - Not deductible by the employee

Allows employers to credit the FUTA liability by the amount of State Unemployment Tax (SUTA) they pay

Question 2

What are the major aspects of FICA and Social Security taxes?

Answer 2

Paid by Employer AND Employee - Employer withholds from employee’s paycheck and must pay tax matching employee’s withholding

If employer under-withholds; they are required to make up the difference

Self-employed individuals must pay both the employer and the employee share; which is “Self Employment Tax”

People drawing Social Security may have their benefits reduced if they go back to work and earn an income

Question 3

When is an employee covered by Workman’s Compensation?

Answer 3

Employees injured on the job get protection; even if they messed up and caused the injury themselves

Exception: If the employee intentionally harmed themselves; there is no Workman’s Compensation

Question 4

What age group is protected under Age Discrimination Laws?

Answer 4

They protect people ages 40 and above at companies where at least 20 people are employed

Question 5

What are the tenets of the Occupational Safety and Health Act (OSHA)?

Answer 5

Employers should promote a safe workplace and environment for their employees to work in

Injury records must be kept
Penalties can be both
o Civil - $1;000 fine per day
o Criminal - Could include imprisonment

Employer can require a search warrant for OSHA to investigate their facilities

Question 6

What types of discrimination are prohibited for employers based on civil rights laws?

Answer 6

Sex

Race

Religion

National Origin

Question 7

What are the powers granted under the Environmental Protection Act?

Answer 7

EPA has the power to assess civil penalties for violating environmental laws like the Clean Air Act
The EPA can sue violators
Citizens can sue violators
States can sue violators
Citizens can even sue the EPA to force enforcement
For hazardous waste sites: owners; operators; transporters; and lenders associated with the site can
be held liable

Question 8

Requirements to file Futa

Answer 8

Had an employee during at least 20 weeks

or

Employer paid $1,500 (or so) in wages during any calender quarter

Question 9

Federal Fair Labor Standards Act (FLSA)

Answer 9

Prohibits employment of children under 14 (ages 14 & 15 can work limited hours)

Minimum wage, and time & 1/2 for work over 40 hours (not for work over 8 hours a day or weekends)

Enforced by the department of labor (criminal and civil actions - no injunctions)

Question 10

Employee Retirement Income Security Act (ERISA)

Answer 10

Regulates existing pension plans (does not have to be established)
contributory or noncontributory

Employee vesting (after 5 years if agrmnt is silent) - for employer contributions
Right to own contributions vest immediately

Established Pension Benefit Guarantee Corporation (Like FDIC for pension plans)
-only for defined benefit plans

Question 11

Family and Medical Leave Act (FMLA)

Answer 11

Allows employees to take 12 weeks of unpaid, job-protected leave in 1 year
-must have worked 1,250 hours in past 12 months

Allows for unpaid leave for birth of a newborn child, foster child or serious medical condition of employee or immediate family member

Private lawsuits for violations and DoL may also sue