The Supervisor’s

Legal Environment

Chapter 7

LEGAL ENVIRONMENT

This chapter provides an overview

of the laws affecting various

aspects of the employment

relationship.

Caution

Nothing in this chapter constitutes

legal advice, and no such advice

should be inferred from its contents.

Turning Point

1964 was the pivotal year for legislation

affecting employment; before 1964

management had to be concerned only

with wage-and-hour and labor laws.

Pre-1964

• Norris-LaGuardia Act (1932)

• National Labor Relations Act (NLRA) (1935)

• Social Security Act (1935)

• Fair Labor Standards Act (FLSA) (1938)

• Labor Management Relations Act (1947)

• Labor-Management Reporting and

Disclosure Act (1959)

• Equal Pay Act (1963)

The Turning Point

Title VII of the Civil Rights Act of 1964

ADEA

The Age Discrimination in Employment Act

(ADEA) of (1967), a significant expansion

of government concern for “age” in

defining a “protected class” under anti-

discrimination law. Amended and

strengthened twice in subsequent years.

Concern for Worker Health and Safety

The Occupational Safety and Health

Act (OSHA) of (1970) gave us OSHA

the Occupational Safety and Health

Administration, the “OSHA” of concern

to all employers.

“Right-to-Know Laws”

State laws that also address exposure

to and handling of more than 1,000

substances considered hazardous

under OSHA regulations.

Rehabilitation Act (1973)

Although disabled persons were

mentioned in the Civil Rights Act of

1964, they were addressed separately

for the first time in the Rehabilitation

Act of 1973.

Employee Retirement Income Security Act (ERISA) (1974)

Passed to protect worker pensions at risk

with failing companies. Required annual

funding of pension plans; employers could

no longer pay pension benefits out of

current income. Created the PBGC – the

Pension Benefit Guarantee Corporation.

Pregnancy Discrimination Act (1978)

This Act defined discrimination on the

basis of pregnancy, childbirth, or

related medical conditions as unlawful

sex discrimination under Title VII;

recognized pregnancy as a disability.

Consolidated Omnibus Budget Reconciliation Act (COBRA) (1986)

Complex legislation addressing many

concerns; most pertinent to employment

is that COBRA allowed for the extension

of group insurance coverage to

employees and their dependents on a

self-pay basis for set periods of time.

Immigration Reform and Control Act (IRCA) (1986)

Required employers to review and as

necessary modify their hiring practices,

instituting procedures to verify that job

applicants are either U.S. citizens or

are otherwise legally authorized to

work in the United States.

Pension Protection Act (1987)

Required organizations with

underfunded pension plans to

make additional payments to the

Pension Benefit Guarantee

Corporation (PBGC).

The Drug-Free Workplace Act (1988)

Required organizations having $25,000

or more in federal contracts or grants

to make good-faith efforts to maintain

a drug-free workplace and to establish

drug education and awareness

programs for employees.

Employee Polygraph Protection Act (EPPA) (1988)

Prevents most private-sector

employers from requiring job

applicants or current employees to

take polygraph (lie detector) tests.

Under EPPA, use of polygraphs is

severely limited.

Worker Adjustment and Retraining Notification Act (WARN) (1988)

Requires employers with 100 or more

employees at any individual site to

provide advance notification of major

reductions in force.

Americans with Disabilities Act (ADA) (1990)

• Provides individuals with disabilities with the same protections afforded minorities and other protected classes under Title VII.

• Frequently in the news and in the courts, with the list of disabilities continually growing and changing.

Older Workers Benefit Protection Act (OWBPA) (1990)

Amends the Age Discrimination in

Employment Act (ADEA) and

clarified the authority of the ADEA

relative to employee benefits for

older workers.

Civil Rights Act of 1991

Amends the Civil Rights Act of 1964: Allows

employees to receive compensatory and

punitive damages for violations committed

with “malice or reckless disregard” for an

individual’s rights, and allows women and

disabled workers to sue for compensatory

and punitive damages.

Family and Medical Leave Act (FMLA) (1993)

Permits eligible employees to take up to 12

weeks of unpaid leave during any 12-

month period when unable to work

because of a serious health condition; to

care for a child upon birth, adoption, or

foster care; or to care for a spouse,

parent, or child with a serious health

condition.

Retirement Protection Act (1994)

Strengthens and accelerates funding of

underfunded pension plans and increases

Pension Benefit Guarantee Corporation

(PBGC) premiums for plans that pose the

greatest risk.

Small Business Job Protection Act (1996)

Included the 1996 increase in the

minimum wage; increased pension

protection; made it easier for workers to

roll over their retirement savings upon

changing employment.

Health Insurance Portability and Accountability Act (HIPAA) (1996)

• Extremely far-reaching Act, going well beyond its name.

• Include five major “Titles” and numerous “Rules,” several not yet implemented.

• Of most significance to healthcare supervisors is a portion of Title II that largely addresses Privacy.

The Patient Protection and Affordable Care Act of 2010 (PPACA)

• “Healthcare Reform,” continuing to evolve.

• Likely to affect healthcare supervisors in two ways: the supervisor may be affected as a participant in the employer’s health insurance plan; and the supervisor is likely to be asked questions by employees the effects of the plan’s changes.

Increasing Social Responsibility

Overall the effect of employment legislation

has been to make employers more socially

responsible for their employees. These laws

have added work and supporting systems

to all organizations and have increased the

cost of doing business.

Policy Making and Implementation

Chapter 6

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