1. employers (having 15 or more employees whose business affects interstate commerce)
2. employment agencies
3. labor unions
4. federal, state, and local government employees 

1. hiring
2. promotion
3. transfers
4. firings
5. compensation
6. job assignments

1. Equal Employment Opportunity Commission (EEOC) and/or
2. Civil actions by individual plaintiffs (if EEOC can't resolve the case)

• suits may be against the employer, not the offending individual supervisor

1. intentional
2. discriminatory impact

• ex: employer assigned Hispanic customers to Hispanic employees and white customers to whit employees
• mixed motive case: P wins if illegal criterion was "motivating factor" in decision

1. Bona Fide Occupational Qualification (BFOQ)
2. Bona Fide seniority or merit system
3. profession-development ability test

2 forms now recognized by congress...

1. Quid Pro Quo
2. hostil environment harassment

1. same-sex sexual harassment is prohibited by Title VII
2. employers may be liable for sexual harassment by their employees and supervisors even though that harassment does not aid the employer in any way
3. if victims suffer an adverse job result, employer is strictly liable
4. if victim doesn't suffer adverse job result, employers can avoid liability by establishing, communicating, and enforcing a zero-tolerance policy
5. employees who do not take advantage of their employer's programs for complaints will be barred from pursuing court litigation (probably)

supplements Title VII

protects individuals 40 years and older (no clause for young people)

main effect:

• prohibits mandatory retirement unless it is an executive over 65
• prohibits discrimination in all other areas of employment as well (based on age)

applies to:

1. businesses employing at least 20 people
2. state and local govs
3. unions with at least 25 members
4. employment agencies

1. employers with 15 or more employees
2. all state and local gov
3. most private businesses that provide accomodations, goods, or services to the public
4. public services and transportation

1. muscular dystrophy
2. HIV infection
3. mental retardation
4. alcoholism
5. emotional illness

1. not discriminate in hiring or other employment practices
2. establish nondiscriminatory hiring standards by (a) identifying the essential functions of the job, (b) ensuring that any employment standards that might exclude a disabled person is "job related and of business necessity" and determining if a "reasonable accomodation" would permit the disabled person to mee the standard
3. make reasonable accomodations

one must accrue 40 quarters (10 years) of contributions to be fully insured

eligible for:

1. survivor benefits for widow or widower and dependents
2. disability benefits for worker and family
3. old age retirement benefits to worker and dependents (can be reduced by early retirement. 62=80%, 63=87%, 64= 93%)

eligible for...

1. limited survivor benefits
2. benefits for disabled worker and dependents
3. lump-sem death benefits

1. covers portion of costs of hospitalization and medical benefits of insured workers and spouses 65 and older
2. can cover young disabled workers in some cases

1. worker who suffers a severe physical or mental impairment preventing that person from working for a year or more or expected to result in death
2. need not be work related
3. after 24 months of dissability, medicare is made available

• imposes Social Security tax on employers, employees, and self-employed
• only applies to wages (active income, generally)

1. rates generally the same for employer and employee
2. max: after tax is deducted from maximum amount ot taxable income, no more will be deducted until next calendar year
3. refund: if employee works for more than 2 employers, may have a total higher than the base amount deducted by employer
4. FICA is also used to fund medicare

1. pay own share
2. withhold employee's equal shar and remit it in a timely fashion
3. pay employee's share if fail to withhold ("double tax")
4. furnish employee with written statement of wages paid and contributions withheld
5. supply taxpayer ID numbers when filing returns

1. colect employee's share from employee
2. deduct as a business expense the contributions made on its own behalf

1. certain corporate taxes are treated as "trust fund" taxes and must be remitted to tax authorities
2. failure to remit may lead to penalty of 100% of the tax not paid being imposed on "any responsible officer and director" who willfully fails to pay the tax

1. self-employed can deduct 50% of FICA from taxes
2. base rate is reduced by any "wages" earned during the year b/c of FICA already paid on those wages
3. self-employment income ex: director's fees, net business profits
4. not income= gifts

1. paid by employer who is paying $1,500 or more in wages during any quarter, or has at least one full-time or part-time employee for at least 20 weeks during the year (deductible by employer)
2. maximum = 6.2%
3. only paid on first $7,000 earned
4. federally mandated byt administed by the states

1. credited against employer's federal tac up to a max of 90% of the federal tax
2. additonal credit against federal tax is created for those with good claims records
3. maximum state credit offset = 5.4%

1. terminated involuntarily,
2. currently available for and looking for work, and
3. employee is not receiving disqualifying income (in some states it doesn't disqualify from benefits, it just requires $ for $ reduction in benefits)

applies to all businesses that affect interstate commerce and is enforced by the Department of Labor's Wage and Hour Division and private lawsuits

4 major sections:

1. minimum wage
2. overtime standard
3. child labor restrictions
4. equal pay provision

1. currently $7.25/hr
2. business bonuses at year-end are not factored in
3. interns who give company an immediate advantage  or displace another worker qualify
4. independent contractors not covered
5. more broad than overtime coverage

1. more than 40/hrs a week = 1-1/2 times their horly wage for extra hours
2. states and county employees may be compensated for overtime with vacation rather than time and half
3. no offset for weeks where employee works less than 40 hours/wk
4. "on call" counts toward 40 hrs
5. not as borad as minimum wage coverage

professionals, execs, admin employees, outside salespersons, commerical fishing workers,

child actors, some agricultural workers

1. excludes those under 18 from hazardous work
2. 16 is basic minimum age for employment for nonhazardous work
3. 14 or 15 year olds can do sales and clerical work
4. under 14 = can't work unless for parent, or for court-approved contracts for entertainment or athletics

1. prohibits discrimination on basis of sex by paying unequal wages for the same work
2. pay variances allowed for seniority, merit, and quality or quantity of work
3. unlike rest of FLSA, applies to executives, admin, and professional employees as well as state and local gov employees

purpose was to protect employee rights in existing pension plans and offer tax incentives to employers and employees to fund employee benefit plans by providing that if the plans meet IRS requirements:

1. employers get a current tax deduction for contributions and
2. employees are able to defer taxation of benefits until the actually receive them

1. broadly preempts state laws regulating pentions
2. applies to pension and welfare benefit plans
3. prohibits plans that discriminate against lower-level employees
4. set up the Pension Benefit Guaranty Corporation (PBGC)

• created to administer plan termination insurance for defined benefit pension plans
• after ERISA, employers are required to purchase pension termination insurance

1. employee contributions must "vest" (employee must have right to contribution) immediately
2. employees' rights to their employers' contributions generally fully vest after 5 years of employment
3. ERISA provides for partial vesting as well
4. standards on investment of funds must be followed to avoid mismanagement (written procedures specifying means of funding and designating a fiduciary with authority to manage and control the plan's operation and management)
5. certain disclosure must be made to employees and to the government

1. federal state and local gov pension plans
2. church plans

1. Departments of Labor and Treasury and
2. private lawsuits

1. defined-benefit plans
2. defined-contribution plans
3. 401(k) plan

1. ensure eligible employees and their beneficiaries a specified monthly income for life
2. insured by Pension Benefit Guaranty Corporation (PBGC)
3. some are integrated with Social Security Benefits
4. fiduciary makes investment decisions

1. specify anual fixed-share contributions to be made by an employer into a retirement account
2. employer contributions may be tied to employee contributions or may be separately calculated
3. invested on behalf of employee who receives proceeds upon retirement
4. employee typically has discretion to allocate the investment among a number mutual funds
5. no PBGC insurance

1. anyone named in a benefit plan as one
2. anyone who excercized any discretionary management or control over the plan
3. renders investment advice for a fee, or
4. has discretoinary authority or responsibility in administration of the plan

1. management accountant who has responsibility to calculate plan benefits also has authority to authorize or disallow benefit payments when a dispute exists about the meaning of plan provisions
2. management accountnt who provdes advice about the interpretation of the plan and knows that the trustee will probably take it
3. acctg firm that offers consultign advice on regular basis
4. accountant with authority to make withdrawals form a bank account holding EIRSA plan assets

1. act with reasonable care and
2. discharge duties solely in the interests of plan's participants

• accountants and other can also be held liable even if they aren't fiduciaries if they participate in a fiduciary's breach of duty
• civil penalty of 20% of the recovery amount allowed

• only applies to companies with 20 or more employees
• ammended ERISA to provide health insurance in 2 circumstances after job loss:

1. termination of any sort (except for gross misconduct) causing loss of health insurance
2. reduction of hours causing loss of health insurance

1. employee must pay for it
2. ex-employee, spouse, and dependent children are covered
3. length of extra coverage is 18 months after qualifying event, 29 months if insured or beneficiary was disabled at time of qualifying event, or within 60 days of additional coverage

1. if an insured spouse become entitled to Medicare but his or her spouse is not yet so qualified
2. divorce, legal separation, or death of employee are qualifying events for spouse to enjoy 36 months coverage
3. dependent child loses dependent status, he or she may purchase group health benefits under COBRA for 36 months

• purpose is to balance employee's workplace demands with needs of family
• the first federal requirement that employer provide gov-mandated benefits

1. employee must be entitled to 12 weeks of unpaid leave without losing his job (child birth, adoption/foster care placement, personal/beneficiary serious health problem, impending order to active duty of employee or beneficiary)
2. employee must work for employer for atleast 12 months and at least 1,250 hours during those months to be eligible
3. covers employers over 50 employees in a 75 miles readius and state and local government agencies

• created to provide nearly automatic compensation for employees who suffer work-related injuries or diseases (doesn't cover independent contractors)
• employers carry workers' comp insurance which provides established levels of benefits that are given automatically to workers for job-related injuries or diseases
• in exchange for paying benefits, employers are immune from civil damage suit by employee unless employer is guilty of intentional tort or gross negligence

employee need not prove negligence or other faulth my employer.  following common law defenses for employer DON'T apply here:

1. assumption of risk
2. negligence of fellow employee
3. employee's contributory negligence

• most states require all employers to carry workers' comp plans
• in some states it is optional, but those who elect not to carry benefits can be sued by injured employees

• although workers are barred from suits against fellow employees and employers, they are allowed to sue 3rd parties if injured or obtain disease during job
• any recovery against 3rd parties that compensated injuries for which employee has already received workers' comp is subject to claim by employer or employer's insurance carrier
• if employee doesn't sue 3rd party, employer can

1. medical care expenses
2. disability protection
3. death benefits (paid to widow and minor children)
4. retraining expenses (when necessary)
5. scheduled payments for various losses (appendages)

• supplements but does not replace state safety standards
• promotes safety standards and job safety
• doesn't make employer guarantee 100% safe workplace, just makes them (a)provide a worklpace without "recognized hazards" likely to cause injury or diesase and (b) comply with OSHA standards for safety and health

1. develope standards
2. require employees to keep records of job-related injuries and report them to OSHA
3. investigated complaints and inspect workplaces
4. determine whether violations have occurred
5. assess remedies

1. ordering correction of unsafe conditions
2. imposing civil fines (per violation)
3. referring case to Department of Justice for criminal prosecution if willfull violation caused death to 1 or more employees

• if employers resist, OSHA need a search warrant by showing "reasonable basis" which can be proven by (a) a higher than usual accident rate,(b) employee compaints, or (c) proof of fair, random surprise search system needed to keep employers on their toes
• warrantless searches my still be authorized if (a) in case of emergency,(b) employer consents, or (c) inspector is merely observing what is open to public view

1. if violation threatens physical harm or imminent danger, employee can file a request for an inspection or refuse in good faith to work if there is no time for inspection
2. employees CAN'T be punished for exercising these rights
3. emlpoyees can be fired for failing to comply with OSHA standards

• applies to all employers involved in of affecting interstate commerce
• workers exempt from this law: independent contractors, gov employees, managerial and supervisory employees, airling and railway employees

1. right to form, join, or assist unions
2. right to bargain collectively
3. right to engage in concerted activities for the purpose of collective bargaining or other mutual protection

• once 30% of eligible employees in an appropriate job category sign authorization cards, an employee group may petition for an election to certify a union as their bargaining representative 
• if management doesn't voluntarily recognize the union as workers' rep, then NLRB monitors an election
• employers who resist the election must avoid committing unfair labor practices because that would result in automatic ceritifcation of the union via a NLRB "bargaining order"

1. interfering with union organizing efforts (bribe for vote against or threaten for vote against)
2. dominating of interfering with union
3. discriminating against union members
4. refusing to bargain collectively 

1. coercing employees
2. requiring employers to agree not to do business with nonunion companies that the union is trying to unionize
3. refusing to bargain collectively
4. engaging in an illegal strike or secondary boycott

employers may bar workers from coming to work in anticipiation of a strike. legality of lockout depends on employer's intent.  illegal if intent is...

1. destroy the union
2. punish workers for organizing
3. avoid its good faith bargaining responsibilities

• prohibited by federal law
• an employer's agreement to hire only members of a union

federal laws allow states to enact these laws (and about half have done so) that prohibit 2 types of agreements that are otherwise legal:

1. "union shops"- agreements requiring newly hired employeed to join the union within a specified period of time
2. "agency shops"- agreements allowing employees not to join the union as long as they pay fees to cover union services

1. negotiations between management and a union
2. once a union is certified, management can't bargain with anyone else purporting to represent employees regarding "mandatory subjects of bargaining"

1. wages
2. hours
3. other conditions of employments such as discharge, seniority rights, retirement and pension plans, insurance plans, and grievances

• withholding information important to fair bargaining 
• presenting "take it or leave it" ultimatums
• sides DO NOT have to meet an actual agreement to be in good faith

1. supported my majority of union members
2. once CBA is met, union must give employer 60 day notice before strike
3. if on multi-employer work site, strike must be held on just the relevant part of the site

1. "wildcat strikes" - strikes by disgruntled minority of workers
2. secondary strikes (boycotts) against 3rd parties to coerce them to oppose management
3. strikes on employer's property

1. union usually agrees not to stike and company agrees not to lock
2. employer agrees to submit disagreements and griecances that arise during the term of the agreement to binding arbitration
3. matters such as pay scales, seniority, overtime, insurance, vacation holidays, etc. are addressed

• may be hired by management during a strike
• following a settlement of an "unfair labor practice strike", employers must reinstate the strikers
• following settlement of economic strikes, management need not lay off the replacement workers, but can't discriminate against strikers if it rehired more workers

• purpose is to promote economic competition
• cover business activity, including foreign companies, that either directily involves or subtantially affects interstate commerce

1. Department of Justice's Antitrust Division can bring criminl or civil lawsuits against violators
2. Federal Trade Commission can enfore the Clayton, Robinson-Patman, and FTC acts
3. provate parties can file civil lawsuits claiming a violation of the Sherman, Clayton, or Robinson-Patman Acts and seek treble damages (3x actual)

1. labor union colective bargaining activity
2. public utilities and common carriers (subject to other regulations)
3. activity that did not affect interstate commerce (very rare)

• ability to raise prices without losing most customers
• market share is key component in measuring this (50% usually not sufficient to monopolize, 75% usually is suficient)
• other relevant factors besides market share are (a) relative size of other firms in market, (b) size and power of customers, (c) entry barriers, and (d) dynamics of market

inferred from:

1. predatory (below cost) pricing
2. nonprice predation (tying up customers in long-term contracts without cost benefit, taking key employees from small competitors, falsely disparaging prodcuts of competitors, forcing smaller firms into unjustified lawsuits and admin expenses, and sabotage)
3. presenting a dangerous probability of success

• unrelated companies merge
• unlikely to face antitrust challange

violates section 1 of Sherman Acts if it "unreasonably" restricts competition

"rule of reason"

• purpose- predominate purpose of the conduct is to restrain competition=ilegal (even if effect on competition is rather slight). predominate purpose of conduct isn't to restrain competition= legal unless competition is severly diminished as a result
• effect- most important factor affecting competition is collective market power of group. if the group could have achieved the claimed legitimate goal with a less restrictive alternative, court is more likely to find a violation

certain types of activities are per se (automatically) illegal and can't be saved by the "rule of reason" defense. including...

1. Price fixing-when competitors agree to charge a specific price, establish a floor, agree not to compete, or agree to rotate bids among a group, etc.
2. market division- by territory, customer allocation, or product line
3. Boycotts- 2 companies choose not to deal with a 3rd to hurt them

• Resale Price Maintenance (RPM) occurs when a seller and a buyer agree on the price at whih the seler will resell to its own customers
• violates Section 1 of Sherman Act
• SC has recently held that it should now be judged by a rule of reason analysis

• also violates Section 1 of Sherman Act by restricting intrabrand competition
• anazlyzed by rule of reason

• company requires customer to buy one item if it buys another
• violates Section 1 of Sherman Act and Section 3 of Clayton act (latter usually redundant)
• can occur only if defendent has substantial market power (30% market share)
• must also generate a substantial amount of business in the tied market to be in violation

• Section 1 of Sherman Act may ban illicit use of "requirements contracts" and "output contracts"
• only "illicit" if 30% or more of the market is locked away from competitors

Robinson-Patman Act's prohibits this if...

1. seller charges different priced to 2 or more different customers
2. transaction involved tangible commodities
3. transactions were sales rather than leases, or consignments,
4. goods were essentially the same
5. likelihook of a substantial injury to competition resulted

1. Cost justification (shipping to customer further away)
2. meeting competition (competitors drop price)
3. changing conditions (suppliers cut costs)

1. trademarks
2. trade secrets
3. copyrights
4. patents

1. fixed in some tangible medium of expression
2. creative and
3. original

• self-executing procedure where as soon as it is written down on paper or recorded on audio, copyright is in affect. no filing is required. 
• registering with the U.S. Copyright office may be a good idea for more protection from foreign countries who haven't signed that Berne Convention

• life of author plus 70 years
• work-for-hire: protected for shorter of 95 years from the date of publication or 120 years from the date of creation

1. ownership of a valud copyright amd
2. unauthorized copying of original elements of Ps work by D (intent not required)

protects coyping for uses such as criticism, comment, new reporting, teaching, scholarship, or research.  4 factors considered in defenses are:

1. purpose and character of the use
2. nature of the copyrighted work
3. amount and substantiality of the portion used
4. effect of the use on the potential market value of the copyrighted work

• government-granted exclusive right to make, use, or sell an invention
• law doesn't allow patents for printed matter, naturally occurring substances, ideas, or scientific principles
• must be filed with U.S. Patent and Trademark Office within one year from when the invention was created

1. involved patentable subject matter
2. it is useful (construed broadly)
3. it is novel
4. it is nonobvious (stronger material for same product already in existense)

1. utility patents (full product)
2. design patents- nonfunctional ornamental design elements in a functional product

utility- 20 years from date of filing

design- 17 years from date of filing

• requires record keeping and reporting by banks and other financial intitutions to trace movement or currency in and out.
• banks must (a)report cash transactions over $10,000, (b) identify persons conducting all transactions, and (c) maintain a traceable paper trail

• in the criminal area, the key statute
• composed primarily by Section 1956 and Section 1957 of Title 18 of the United States Code (treated separately)

 includes 2 parts that are separately punishable:

1. prohibits money laundering where the prohibited act is the financial transaction itself. examples are intent to (a) promote unlawful activity, (b) engage in violations of Sections 7201 or 7206 of the Tax Code, (c) attempt to conceal the nature, location, source, ownership, or control of proceeds from specified unlawful activity, and (d) attempt to avoid state or federal reporting requirements
2. Second, it prohibits transportation money laundering (transportation of criminally derived funds in or out of U.S.) with intent to (a) promote illegal acts, (b) transport illegal proceeds in an attempt to hide them, or (c) transports illegal proceeds to avoid reporting requirements

•  civil penalty- $10,000 maximum
• criminal penalty- 20 years in jail and a $500,000 fine or twice the value of the laundered money (whichever is more)

• monetary transactions in criminally derived property over $10,000
• to be liable, recipient must "knowinlgy" engage in a transaction involved criminally derived property

• civil penalty- $10,000
• criminal penalty- up to 10 years in jail and a fine