Employment Law

Question 1

In Indiana, employment is presumed to be what?

Answer 1

At will.

Question 2

What are the three (3) ways by which the presumption of at will employment can be overcome?

Answer 2

(1) Employment contracts and employee handbooks,
(2) Exceptions based on public policy, and
(3) Promissory estoppel.

Question 3

What are the three (3) requirements for a valid noncompete agreement?

Answer 3

(1) The employer must have a legitimate, protectable interest (one the employee gained at the employer’s expense and could be used unfairly),
(2) The restrictions must be reasonable in geographic scope, in time (generally 2 years), and not against public policy, and
(3) There must be adequate consideration (an offer of employment or an offer to continue employment = valid consideration).

Question 4

What is the Blue Pencil Doctrine?

Answer 4

Essentially comparable to a line item veto.

Question 5

In Indiana, what is the basis for employment discrimination claims?

Answer 5

Civil Rights Law.

Question 6

What classes are protected under the Civil Rights Law, Chapter 1?

Answer 6

Race, religion, color, sex, disability, national origin, ancestry, and veterans.

Question 7

What employers are subject to the Civil Rights Law?

Answer 7

Employers with 6+ employees (the Civil Rights Act applies to employers with 15+ employees).

Question 8

Who enforces the Civil Rights Law?

Answer 8

The Civil Rights Commission.

Question 9

What is the procedure for a civil rights violation complaint?

Answer 9

(1) A complaint must be filed within 180 days of the alleged act of discrimination.
(2) Within 20 days of service, the respondent must answer the complaint or offer relief in lieu of answering. Failure to respond = an admission.
(3) If the respondent chooses to defend against the complaint, the case proceeds to a PC investigation. If PC is found, the case proceeds to a hearing on the record.
(4) Normal pre-hearing proceedings may take place. Discovery is authorized.
(5) A hearing on the record is held. There is no right to a jury trial. At the end of the hearing, the commission will make a findings of fact and conclusions of law.

Alternatives: Parties may agree in writing to have a claim heard by a circuit/superior court, but only if a hearing on the record has not yet begun. A consent agreement may also be signed by the director of the Civil Rights Commission and is enforceable as a final order.

Question 10

What are the remedies for a violation of the Civil Rights Law?

Answer 10

A cease and desist order must be issued. The following options are available in addition to:

(1) An order to restore complainant’s losses,
(2) Posting a notice setting forth Indiana’s public policy re: civil rights and the respondent’s compliance,
(3) A required filing of proof of compliance at periodic intervals, and
(4) A requirement that the respondent show cause as to why its license should not be revoked or suspended.

Question 11

The Civil Rights Law, Chapter 2, re: age applies to what type of employers?

Answer 11

Employers with fewer than 20 employees (federal statute covers employers with 20+ employees).

Question 12

What is the protected age range?

Answer 12

40-75.

Question 13

Who oversees age discrimination cases?

Answer 13

Indiana Dept. of Labor.

Question 14

The Civil Rights Law, Chapter 5, re: discrimination against disabled persons applies to what type of employers?

Answer 14

Employers with 15+ employees for each working day in each of 20+ calendar weeks in the current or preceding calendar year.

Question 15

What are considered reasonable accommodations re: employees with disabilities?

Answer 15

(1) Making existing facilities used by employees readily accessible to and usable by individuals with disabilities, and
(2) Job restructuring, part-time or modified work schedules; reassignment to a vacant position; acquisition or modification of equipment or devices; appropriate adjustment or modification of examination, training materials, policies; the provision of qualified readers or interpreters, etc.

Question 16

To whom does the Wage Payment Statute apply?

Answer 16

To current employees at the time of the wage dispute or employees who voluntarily left employment.

Question 17

What are the five (5) rules re: the Wage Payment Statute?

Answer 17

(1) An employee must be paid in at least semi-monthly installments or bi-weekly installments, if requested.
(2) An employee must be paid in legal currency by check, draft, money order, or electronic deposit.
(3) An employer can withhold only 10 business days’ work from the paycheck.
(4) When an employee quits, he does not have to be paid until the next payday. An employee is entitled to unused vacation pay unless a published company policy states otherwise.
(5) Severance pay is not considered a wage for purposes of this statute.

Question 18

To whom must a wage claim be submitted?

Answer 18

IN Dept. of Labor (there is no private cause of action).

Question 19

If an employer disputes the total amount owed to an employee, what must the employer pay?

Answer 19

Any undisputed amount.

Question 20

To whom does the Wage Claim Statute apply?

Answer 20

To employees who were fired.

Question 21

What are the general remedies under both the Wage Payment and Wage Claim Statutes?

Answer 21

Unpaid wages, payment of costs, and if the court finds the employer was acting in bad faith, the payment of an additional amount of 2x the amount of wages due to the worker.

Question 22

What are the requirements for a wage assignment?

Answer 22

(1) In writing,
(2) Signed by the employee,
(3) Revocable by its terms on written notice by the employee to the employer, and
(4) Agreed to in writing by the employer.

Question 23

When can wage assignments be made?

Answer 23

(1) Insurance,
(2) Charitable contributions,
(3) Purchase of bonds or securities,
(4) Participation in employee stock-purchase programs,
(5) Union dues,
(6) Purchase price of food or goods offered by the employer and sold to the employee, for the employee’s benefit, and at the written request of the employee,
(7) Purchase of uniforms or equipment for use on the job (total amount may not exceed lesser of $2,500 or 5% of the employee’s disposable earnings),
(8) Repayment of payroll or vacation advances, and
(9) Amounts loaned to the employee by the employer as evidenced by a written agreement (interest must be capped at prime plus 4%).

Question 24

What is the employee’s only remedy for a work-related accident?

Answer 24

Workers’ compensation (unless the employer intentionally inflicted the injury).

Question 25

What is an applicable work injury for workers’ compensation?

Answer 25

An injury that both arises out of and is in the course of employment.

Question 26

If an accident happens, what must an employee do?

Answer 26

Provide a signed notice (giving the time, place, nature, and cause of the injury) to the employer within 30 days of the accident.

Question 27

What is the statute of limitations for workers’ compensation claims?

Answer 27

2 years from accrual.

Question 28

Who is exempt from the workers’ compensation system?

Answer 28

Ag. workers, household workers, casual workers, and independent contractors.

Question 29

Who chooses the medical provider in a workers’ compensation claim?

Answer 29

The employer.

Question 30

If a worker is temporarily and totally/partially disabled, how much of a benefit does he receive?

Answer 30

2/3 of his weekly wages for up to 500 weeks (and may be offset by permanent partial impairment benefits).

Question 31

How does a TTD benefit terminate?

Answer 31

(1) The worker returns to work,
(2) The worker dies,
(3) The worker refuses a medical exam,
(4) The 500 week period is reached, or
(5) The worker cannot return to work for reasons other than the injury.

Question 32

What is the workers’ compensation death benefit?

Answer 32

A death benefit is paid to the worker’s dependents up to the unused portion of the 500 weeks period.

Question 33

What defenses may an employer have against a workers’ compensation claim?

Answer 33

(1) Employee knowingly self-inflicted injury,
(2) Intoxication,
(3) Commission of a crime,
(4) Knowing failure to use a safety appliance,
(5) Knowing failure to obey a reasonable written or printed rule of which the employer conspicuously posted, or
(6) Knowing failure to perform any statutory duty.

Question 34

What is the wrongful death claim cap?

Answer 34

$10,000.

Question 35

Who is eligible for unemployment compensation?

Answer 35

Persons fired without good cause.

Question 36

What are the amount restrictions for unemployment compensation?

Answer 36

47% of the employee’s wages and paid for a maximum of 26 weeks. Benefits cannot exceed $390 per week.