Other Federal Regulations Flashcards
Under the Social Security Act, how does an individual acquire an insured status?
By spending a certain amount of time working
Under the Social Security Act, what can cause a person’s earned benefits to reduce?
- retiring early
- working after retiring
- earning more than a base level of income
Do unemployment benefits count as part of one’s income?
Yes, they are part of one’s taxable income
What do most states require within their unemployment laws?
All states require a significant amount of past employment, and most require the unemployed person not to be at fault
Self-employed persons cannot receive unemployment benefits
What is the Federal Insurance Contributions Act (FICA)?
A tax on wages with two components, one for Social Security and one for Medicare
Both the employee and the employer must make a contribution, set at 7.65% for 2013
How is the FICA tax ordinarily paid?
The employee’s share must be withheld from his wages as they are paid
Failure to do so may make the employer responsible for a double tax liability – both his and the employee’s share of taxes
Are FICA contributions tax-deductible?
The employer’s contribution can be deducted insofar as the wages are for business-oriented work
The employee’s contribution cannot be deducted
How do FICA contributions work for self-employed people?
They must make a double contribution, just as if there were a separate employer and employee contribution
Same rules for tax-deductibility apply – so he can ordinarily deduct half
What is the Unearned Income Medicare Contribution tax?
As of 2013, a 3.8% tax upon the net investment income of high-income taxpayers
How are unemployment insurance programs ordinarily financed?
Through the Federal Unemployment Tax Act (FUTA) and State Unemployment Tax Act (SUTA)
What is required under FUTA?
Employers who either (a) pay wages of at least $1,500 during any calendar quarter or (b) employ someone at least one day per week for 20 weeks must pay the tax
Paid only on first $7,000 per employee per year, and tax-deductible
How does SUTA relate to FUTA?
The state unemployment tax can vary, but certain states also permit state unemployment tax payments to be credited to employers’ FUTA liability, up to 90%
Per the Social Security Act, who counts as an “employee”?
Part-time employees do
Partners, independent contractors, or self-employed persons do not – they’re deemed self-employed
Some officers or directors do not count either
Per the Social Security Act, what services cannot count as “employment”?
Services performed by ministers, student nurses, nonresident aliens, and some public employees
Moreover, employment must be recurring/continuous
Per the Social Security Act, what payments count as “wages”?
(1) bonuses
(2) vacation and severance pay
(3) commissions
(4) tips, if at least $20 per month
Per the Social Security Act, what payments do not count as “wages”?
(1) reimbursed travel expenses
(2) compensation over the maximum wage base
(3) insurance premiums paid by an employer
(4) retirement benefits paid by an employer
Can employees elect not to be covered by the Social Security Act?
No, it is mandatory
Are workers’ compensation laws designed to recover only for those injuries not caused by negligence?
No, it also covers for injuries caused by negligence
What are the four purposes of workers’ compensation laws?
(1) providing benefits quickly
(2) providing a single and simple remedy
(3) shifting the burden of covering injuries from charities to the industries themselves
(4) incentivizing employers to be more concerned with employee safety
Does workers’ compensation apply to all workers?
No, e.g. not to employees of common carriers
Most states apply it to minors
From whom can employers purchase insurance for workers’ compensation?
Some states require it to be purchased from a state fund, but most permit it to be from a private insurance firm too
Employers can be self-insured if they desire
Can an employee sue for damages after receiving workers’ comp?
No, although a third party can
What occurs if an injured worker recovers from a third party?
The employer is entitled to recover the workers’ comp paid to the injured worker to the extent that it is covered by the third party’s damages
The injured worker can keep any excess
Can an employer elect not to abide by workers’ compensation laws?
Yes, the workers’ comp statutes can be elective rather than compulsory
But since this opens up employers to huge legal claims, accepting workers’ comp laws is effectively mandatory
What are the four usual kinds of workers’ compensation benefits?
(1) cash
(2) medical
(3) death benefits
(4) rehab
All amounts received are tax-deductible
What are the different kinds of cash benefits under workers’ comp?
Impairment benefits and disability benefits
What is generally included within death benefits under workers’ comp?
An allowance for burial/funeral expenses in addition to a % of the weekly wage – though that usually ends if the spouse remarries
What are the different kinds of rehab benefits under workers’ comp?
Medical or vocational, if the injury requires job (re)training
For workers’ comp, what is the employee required to do when reporting his injury?
Must report injury to employer promptly, generally within 30 days
Must file claims with the state in some period, ordinarily 60 days to two years – not doing so can invalidate the employee’s claim, depending on the state
Under what circumstances may an employee sue an employer after having received workers’ comp?
If the employer intentionally harmed the employee, and if the employee seeks damages beyond what workers’ comp provides
What injuries are generally excluded from receiving workers’ compensation?
(1) injuries in traveling to/from work
(2) self-inflicted injuries
(3) injuries suffered while drunk
What does Title VII of the 1964 Civil Rights Act forbid?
Sexual harassment, and employment discrimination regarding race, color, religion, sex, or national origin
Does Title VII apply to all employers?
No, only to those who employ at least 15 people at least 20 weeks per year
Title VII applies to all employment agencies and gov’t agencies
What defenses can an employer provide if accused of a Title VII violation?
(1) bona fide occupational qualifications (though this cannot defend against racial discrimination)
(2) national security
(3) seniority or merit
(4) professionally developed ability test
How does Title VII protect against age discrimination in employment?
Protects workers who are at least 40
Forbids mandatory retirement, no matter the age (except for “bona fide executives” and “high policy-making employees”)
If an employer’s affirmative action policies are challenged as allowing for reverse discrimination, how would these charges differ?
A private employer would be challenged under Title VII of the Civil Rights Act, while a gov’t employer would be challenged under the “equal protection” clause of the 14th amendment
What is OSHA?
Occupational Safety & Health Act – passed in 1970 to provide a safer working environment
Occupational Safety & Health Administration administers the act
Under OSHA, what are the different kinds of exemptions employers can have to OSHA standards?
Temporary = if employer is unable to comply with standards within the required time
Permanent = if employer’s safety methods are already generally good enough
Under OSHA, what does an inspector need to inspect a business?
A warrant – legally obtainable if there is probable cause
Probable cause does not take very much – e.g. employee complaints
What is the Fair Labor Standards Act (FLSA)?
Enacted in 1938, it provides laws on workers’ hours and wages, such as minimum wage
Thus called the Wage-Hour Law
How does the FLSA govern overtime hours?
Employees who work past 40 hours per week usually must be paid time-and-a-half
What is the FLSA’s rule governing opportunity wages?
Some employees younger than 20 can be given a wage under minimum wage (basically, the minimum wage decreases) for the first 90 consecutive calendar days of work
How does the FLSA govern child labor?
Children under 16 cannot work full-time, except sometimes for parents
Children between 16 and 18 cannot perform hazardous jobs or tasks
What is the Employee Retirement Income Security Act of 1974 (ERISA)?
Provides standards for employee pension plans IF employers decide to have them, e.g. governing investments
What are some employee rights regarding pensions under ERISA?
Employee contributions vest immediately, and employee rights to employer contributions must vest after the employee has worked for five years
What is the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
Permits employees to continue to have health insurance coverage after they leave the company, even if it is due to firing
Coverage is at employee’s expense, and the coverage lasts usually 18 months but sometimes 36 months
How does the American Recovery & Reinvestment Act of 2009 (ARRA) relate to COBRA?
If people were laid off between Sept. 1, 2008, and Dec. 31, 2009, they could pay only 35% of the COBRA coverage
The employer must pay the difference but can then credit it against his income taxes
Which agency oversees antitrust laws?
Federal Trade Commission (FTC)
What does the Sherman Antitrust Act forbid?
Monopolizing activities, including conspiracies and attempts to monopolize – threatens both civil and criminal penalties
What are two different kinds of monopolization activities?
Horizontal = agreements of sellers at the same level – these are violations per se
Vertical = agreements between distributors and retailers in the same chain – these can be violations according to the “rule of reason”
What is the rule of reason?
A doctrine from the Sherman Antitrust Act which takes the surrounding circumstances of an action into consideration (rather than declaring it wrong by itself: “per se”)
If the action unreasonably restricts trade, then it is a violation of antitrust law
What are different kinds of vertical price fixing agreements?
(1) maximum price fixing agreements = distributors impose maximum prices that retailers may charge
(2) minimum = they impose a minimum price
Both of these are judged by the rule of reason – though (2) has been judged that way only since June 28, 2007
What are some examples of per se violations under antitrust law?
(1) market allocation = separating markets by customer type, geography, or product, and then agreeing not to compete
(2) group boycotts = when competitors, as a group, don’t do business with another party in order to hurt him or make him comply with the group
(3) tying arrangements
(1) is not a per se violation if vertical
What are tying arrangements?
If a seller makes the purchase of one product (tying product) depend upon the purchase of another (tied product), it is a per se violation if…
(a) the seller has substantial power regarding the tying product and
(b) he gains “not insubstantial” sales in the tied product
What constitutes monopolization?
Not only a gain in market power, but a gain that is unfair or subsequently abused
What does the Clayton Act do?
Prohibits arrangements that easily lead towards a monopoly, though it only can enforce civil penalties
What kind of economic arrangements does the Clayton Act prohibit?
(1) exclusive dealing arrangements = a buyer contracts to deal only with one seller
(2) horizontal and vertical mergers
(3) conglomerate mergers
(2) refers to related businesses (whether the same level or the same channel), while (3) refers to unrelated businesses
What is the Robinson-Patman Act?
Forbids sellers (with civil and criminal penalties) from price discrimination – selling similar goods at different prices to different buyers
What is the difference between a copyright and a patent?
Copyrights must be original expressions of an idea (not necessarily a new idea), e.g. music, dramas, and movies
Patents apply to inventions for a limited period of time
In what ways are computer programs protected under copyright law?
Both binary code and human-readable code are copyright-able, but the “look and feel” of programs is not
What is the No Electronic Theft Act of 1997 (NET)?
Changes the penalties against copyright violators, so that willful violators can be punished as criminals if they infringe on at least $1,000 worth of copyrighted material – even if they don’t profit from infringing
Why was NET passed?
Online pirating of music and other things – for such piracy was often not profitable
What is the Digital Millennium Copyright Act of 1998 (DMCA)?
Implements two 1996 international treaties from the World Intellectual Property Organization (WIPO)
Cracks down on infringers who tend to avoid anti-piracy or other copyright protection systems
Do copyrights need to be registered?
No, they become fixed whenever an original work comes into existence in a tangible form – although registering for a copyright can help prevent infringement and is required in order to file for infringement
How does a copyright owner give notice of copyright?
Including within the work (a) the word “copyright,” the symbol ©, or the abbreviation “Copr.”, (b) the first publication date, and (c) the owner’s name
How long do copyrights last?
Usually 70 years after the life of the author
For work created for hire (i.e. by an employee within his employment), they last 95 years from publication or 120 years from creation, whichever is sooner
What are the five rights of a copyright author?
(1) to reproduce the copyrighted work
(2) to prepare other works based upon it
(3) to publicly distribute copies of it
(4) to perform the copyrighted work publicly
(5) to display the work publicly
Each of these rights is transferable
What is the fair use doctrine?
Enables certain parties (e.g. teachers) to use copyrighted material without infringing
How are patents granted and regulated?
By the U.S. Patent and Trademark Office according to the Patent Act
What are different kinds of patents?
(1) utility patents = for inventing a new process, machine, etc. that has some particular usefulness
(2) plant patent = for inventing or discovering a new plant and asexually reproducing it
(3) design patent = for inventing a new design for a manufactured item; the design must demonstrate “ornamentality”
How long do patents last?
(1) utility patents = 20 years from filing
(2) plant patents = 20 years
(3) design patents = 14 years
What is money laundering?
A financial transaction that seeks to hide an unlawful source of money
Called “laundering” because it is pretending that a “dirty” source of money is “clean”
What act forbids money laundering?
Money Laundering Control Act (MLCA)
Requires record-keeping and disclosure for cash transactions over $10,000
What is the National Environmental Policy Act (NEPA)?
Established by the Council on Environmental Quality (CEQ) to better ensure compliance with environmental regulations
Requires an “environmental impact statement” for any federal law or action which could affect the environment
What is the Environmental Protection Agency (EPA)?
Formed by presidential executive order to enforce environmental laws with civil and criminal penalties
What are some acts related to the EPA?
(1) Safe Drinking Water Act (SDWA)
(2) Resource Conservation & Recovery Act (RCRA) – governs the disposal of hazardous wastes
(3) Toxic Substances Control Act (TSCA) – governs chemical manufacture and distribution
What is the Comprehensive Environmental Response, Compensation, & Liability Act (CERCLA)?
Established an inventory of inactive hazardous waste sites in the U.S. and a Hazardous Waste Fund to pay for eliminating or containing the waste sites
What sort of penalties does CERCLA provide?
It imposes strict liability on parties for hazardous waste cleanup, all of which are both jointly and severally liable:
- creator of waste site
- transporter of waste to site
- owner/operator of site at disposal
- current owner/operator
“Operators” include anyone who can exercise control
What is the Emergency Planning & Community Right-to-Know Act (EPCRA)?
Gives citizens a right to know about hazardous chemicals in their communities
