Employment Law Report

University of Phoenix

HRM 531 Human Capital Management

Week 1

Employment Law

Employment law, also referred to as labor laws, governs the rights and duties between employers and employees (HG.org, 2016). These rules are essentially designed to keep employees safe and ensure they are treated fairly while ensuring protection to employers’ interest as well (HG.org, 2016). Employment laws are positioned on federal and state constitutions, legislation, administrative rules, and court opinions; particular employment relationships may be governed by contract (HG.org, 2016). Employment laws provide structure to the workplace and define the foundation of what employer and employee responsibilities are; in some instances, employment laws outline direction for resolving workplace conflicts (Mayhew, n.d.).

The National Labor Relations Act (NLRA)

Congress enacted the NLRA in 1935 to protect the rights of employers and employees, to encourage collective bargaining, and to curtail certain private sector labor and management practices, which can harm the general welfare of employees, businesses and the United States economy (National Labor Relations Board, n.d.). With limited exceptions, the NLRA applies to all private employers who are engaged in interstate commerce and guarantees the right of employees to organize and bargain collectively with their employer, or refrain from such activity (Berkowitz, 2016). The National Labor Relations Board (NLRB) does not have the authority to impose traditional penalties or punitive damages on the employer; however, it does have influential remedial authority to provide “whole relief” to the charging party (Englert, 2016). “In other words, upon finding that an employer has committed an unfair labor practice, the NLRB will order the employer to cease and desist from the unfair labor practice and to take affirmative action to remedy the violation” (Englert, 2016).

The Americans with Disabilities Act (ADA)

The ADA became law in 1990 and is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public. The purpose of the law is to make sure that people with disabilities have the same rights and opportunities as everyone else. The ADA gives civil rights protections to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, state and local government services, and telecommunications. (The ADA, n.d.)

“Any individual with an impairment that does not limit a major life activity is not considered disabled for the purposes of the ADA” (Berkowitz, 2016). “Employers have certain responsibilities towards disabled employees, so knowing how to determine if a worker is covered by the law is important” (Berkowitz, 2016). Non-compliance with ADA can place businesses in costly positions considering the large lawsuits won over the decades; several class action lawsuits filed by private citizens and watchdog groups such as the National Association for Deaf (NAD) have set precedence for similar lawsuits throughout the United States with millions of dollars in fees, damages, and litigation expenses (Docsoft, n.d.).

The Fair Credit Reporting Act (FCRA)

The FCRA promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies (FTC.gov, n.d.). “The FCRA is a complex statue which promotes the accuracy, fairness, and privacy of consumers’ credit information and credit history” (Berkowitz, 2016). For employment purposes, that includes making sure that an employer does not conduct a background check on any job applicant or employee without complying with specified requirements under the FCRA (Berkowitz, 2016). “There are legal consequences for employers who fail to get an applicant’s permission before requesting a consumer report or fail to provide pre-adverse action disclosures and adverse action notices to unsuccessful job applicants; the FCRA allows individuals to sue employers for damages in federal court” (IntelliCorp Records, 2016).

Organizational Structure for Employment Law Compliance

An organization must have standards of conduct and internal controls reasonably capable of reducing the likelihood of criminal and other improper conduct. The foundation of these controls should be a code of conduct. The code should contain an overall description of the program and address in a practical manner the compliance risks that are relevant to the organization. It should identify clearly those who are responsible for administering the program, the role of the governing authority, and provide general guidance on the business behavior expected of all employees. The code should also identify clear channels for reporting misconduct or violations of the code, and make clear that disciplinary action will be taken if an employee violates the code. (ACC, n.d.)

In addition to the code, an organization needs to have more specific policies and procedures to provide detailed guidance on the approach the organization wants employees to follow, or avoid, in its business relationships. These more detailed policies and procedures should address legal and regulatory risks relevant to the organization’s business. These can be policies that address areas such as conflicts of interest, political contributions, agent and vendor due diligence, internal accounting practices, anti-corruption expectations, record retention, government funded projects, export controls, and custom issues. (ACC, n.d.)

References

Dessler, G. (2017). Human Resource Management (15th ed.): Pearson Education.

ACC. (n.d.). Establishing an Effective Compliance Program: An Overview to Protecting Your Organization. Retrieved from http://www.acc.com/legalresources/quickcounsel/eaecp.cfm

IntelliCorp Records. (2016). FCRA Compliance Procedures. Retrieved from https://www.intellicorp.net/marketing/Resources_FCRA_Client.aspx

FTC.gov. (n.d.). A Summary of Your Rights Under the Fair Credit Reporting Act. Retrieved from https://www.consumer.ftc.gov/articles/pdf-0096-fair-credit-reporting-act.pdf

Docsoft. (n.d.). ADA Non-Compliance: Can You Afford It?. Retrieved from http://www.docsoft.com/Resources/Studies/Whitepapers/ComplianceROI.pdf

The ADA. (n.d.). What is the Americans with Disabilities Act (ADA)?. Retrieved from https://adata.org/learn-about-ada

Englert, I. S. (2016). What Penalties May an Employer Face If the National Labor Relations Board (NLRB) Finds It Committed an Unfair Labor Practice?. Reed Business Information Inc. Retrieved from http://www.xperthr.com/faq/what-penalties-may-an-employer-face-if-the-national-labor-relations-board-nlrb-finds-it-committed-an-unfair-labor-practice/5338/

National Labor Relations Board. (n.d.). National Labor Relations Act. Retrieved from https://www.nlrb.gov/resources/national-labor-relations-act

Berkowitz, M. (2016). Small Business Employment Guide: Five Important Laws to Know. Monster Worldwide. Retrieved from http://hiring.monster.com/hr/hr-best-practices/workforce-management/employee-benefits-management/employment-laws.aspx

Mayhew, R. (n.d.). Importance of Labor Laws.  Demand Media. Retrieved from http://yourbusiness.azcentral.com/importance-labor-laws-10236.html

HRG.org. (2016.). Employment Law. Retrieved from https://www.hg.org/employ.html