CHAPTER 17 – EMPLOYMENT AND LABOR LAW
TRUE/FALSE
1. During the hiring interview, Supervisor Staci told Henry that as long as he did his job as requested, he
would have a job until he retired. Courts have been willing to enforce such an oral promise under the
Truth in Hiring doctrine, even if the company’s top management did not approve the statement.
2. The prohibition against wrongful discharge prohibits an employer from firing a worker for a bad
reason.
3. Prior to the Industrial Revolution, the primary law of employment was that, absent an agreement
otherwise, a worker was hired for a year at a time.
4. As a general rule, employers have a legal obligation to disclose information about former employees to
potential future employers.
5. If a whistleblower successfully brings suit against a company that defrauds the government, the
whistleblower can receive 30 percent of the damages awarded to the government.
6. It is legal for a private employer to use lie detector tests as part of its usual hiring process.
7. Firing an employee for her refusal to violate the law would raise a claim of wrongful discharge.
8. Since 1900, the number of workplace injuries and deaths has decreased, partly due to the OSHA, even
though the size of the workforce has increased fivefold.
9. Some courts have held that employee handbooks create binding contract terms.
10. The National Labor Relations Act guarantees employees the right to join unions.
11. The National Labor Relations Act requires the union and the employer to reach an agreement through
good-faith collective bargaining.
12. If employees wish to organize a union, the employer is prohibited from distributing written notices to
employees stating it is opposed to union activity within the company.
13. The union representing workers at Blue Ridge Co. were unable to reach a collective bargaining
agreement with management. The union may legally stage a strike in which members stop working but
remain at their job posts, physically blocking replacement workers from taking their places, so the
strike is more effective.
14. The management of Northeastern Manufacturing may not close one of its manufacturing plants
without bargaining that issue with the union if its workers are represented by a collective bargaining
unit.
15. The Employee Retirement Income Security Act (ERISA) requires employers to establish pension plans
for employees.
MULTIPLE CHOICE
1. The National Relations Labor Act of 1935 is also known as the:
a.
Wagner Act.
b.
Taft-Hartley Act.
c.
Robinson-Patman Act.
d.
Freedom to Work Act.
2. The Family and Medical Leave Act applies to:
a.
companies with 15 or more full-time workers.
b.
companies with 50 or more employees.
c.
companies with 100 or more employees.
d.
any company engaged in interstate commerce.
3. Megan was employed by a large company. Her supervisor told her to falsify government reports. She
refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Megan was
an at-will employee, she had no legal right to claim the company was liable for damages. Is the
employer right?
a.
Yes. An at-will employee does not have a legal right to claim wrongful discharge of
employment.
b.
Yes. As an employee, Megan owes a duty of loyalty to her employer. If the company was
found to have acted illegally by falsifying the reports, it (not Megan) would be liable.
c.
No. Even though Megan was an at-will employee, such employees may not be fired
without just cause.
d.
No. Though at-will employees do not have extensive rights relative to job security, they
may not be legally fired for refusing to perform an illegal act.
4. Maxine lost her job as an electrical engineer with a large company which had provided health
insurance benefits for Maxine and her family. She now:
a.
must try to find insurance on her own or try to find another job with health insurance
benefits.
b.
is protected under COBRA, which allows her continued health insurance coverage for 18
months as long as she pays the cost.
c.
is protected under COBRA, which requires her employer to continue her health insurance
coverage for six months under whatever copayment arrangements she had while she was
employed.
d.
has some protection under the NLRA, which requires her employer to pay for continued
health insurance for three months following her termination if she did not leave the
company voluntarily.
5. Jessica was a former employee of Mark. When potential employers called Mark for a reference about
Jessica, he stated she was not a very good worker and had been fired for excessive absences. He said
he believed Jessica was on drugs, but he did not know for sure. Jessica learned what Mark was saying
and sued him. In most states:
a.
it was legal for Mark to say what he said if it was true and Mark was not motivated by ill
will.
b.
it was legal for Mark to say what he said, since courts have consistently ruled that former
employers are immune from lawsuits for giving references.
c.
it was not proper for Mark to say what he said, since courts have consistently ruled that
former employers should not give references over the telephone or in writing without the
former employee’s written authorization.
d.
though it was proper for Mark to talk about Jessica’s work-related history, he acted
improperly when he said he thought she was on drugs.
6. Sharon fell while making an inspection of a machine at work and in the fall, she broke her arm. Can
she collect workers’ compensation for the time she had to be away from work as she recovered?
a.
Yes, since the injury occurred while she was engaged in her job at work.
b.
Yes, if she can prove that the injury was caused by a fellow employee.
c.
No, she can only receive compensation for her medical expenses.
d.
No, since she should have been using a safety harness.
7. Roxanne was fired from her job when her employer instituted a new policy that prohibited employees
from smoking cigarettes. This requirement applied to off-duty time as well as job-related time.
Roxanne claimed that she could not quit smoking and that she was wrongfully fired since she did not
smoke in the workplace — only when she was outside the building and during off-duty time.
a.
The company has wrongfully fired Roxanne and is liable to her for damages.
b.
The company would be liable to Roxanne only if there is a state statute prohibiting
employers from passing such job-related requirements.
c.
The company is not liable to Roxanne since the nonsmoking requirement is reasonable
given the high cost of treating smoking-related illness.
d.
The company is not liable to Roxanne since the United States Supreme Court has
expressly ruled such a company policy does not violate the worker’s right to privacy.
8. Does the Family and Medical Leave Act apply to professionals like CPAs?
a.
Yes, if they work for a company with at least 50 workers.
b.
Yes, but only if they are paid on an hourly basis.
c.
No, but the professional firm must provide adequate vacation and sick days.
d.
No, unless the employer specifically provides coverage.
9. When may an employer require an employee to submit to a lie detector test?
a.
When the employee has been hired for less than 90 days
b.
When the test is part of an on-going investigation into crimes that have occurred.
c.
When the employer has reason to believe the employee is using illegal drugs on the job.
d.
When all employees are being questioned using a lie detector.
10. Which of the following statements is correct?
a.
It is much easier for a government employer to test an employee for drugs or alcohol than
it is for a private employer.
b.
Generally speaking, in most states, it is easier for a private employer than the government
to test an employee for drugs or alcohol.
c.
Neither may test for drugs or alcohol.
d.
Both may test for drugs or alcohol without restriction.
11. Under the federal legislation known as OSHA:
a.
employers must keep records of all workplace injuries.
b.
employers must keep records of positive results of workplace drug tests.
c.
employees must keep their work area free from recognized hazards.
d.
employers may monitor workers’ e-mail messages if the monitoring is done in the
ordinary course of business and the employer provides the e-mail system.
12. Abbott provided evidence of fraudulent financial reporting about his employer, a publicly traded
company, to federal securities investigators. Abbott receives whistleblower protection under:
a.
the U.S. Constitution.
b.
The Sarbanes-Oxley Act.
c.
The Civil Service Reform Act.
d.
None of the above.
13. Which of the following are tasks of the National Labor Relations Board?
a.
To adjudicate claims that an employer has committed an unfair labor practice.
b.
To adjudicate claims that a union has committed an unfair labor practice.
c.
To decide whether a particular union is entitled to represent a group of employees.
d.
All the above are tasks of the National Labor Relations Board.
14. Ron and several fellow workers of Vicy, Inc., a small manufacturing company, wished to organize a
union. When Vicy learned of this activity, it issued a bulletin to all workers stating that a union will
only hurt the company and that “we are a family that can solve any problems ourselves — we do not
need union activists from outside our company trying to tell us what to do!” Which statement is correct
concerning the bulletin issued by Vicy?
a.
Vicy has committed an unfair labor practice. Vicy must remain neutral during the
organizing drive.
b.
Vicy has committed an unfair labor practice. The bulletin constitutes outrageous
interference with the union organizing campaign.
c.
Vicy has not committed an unfair labor practice. An employer may vigorously present
anti-union views to its employees.
d.
Whether Vicy has committed an unfair labor practice depends on whether the bulletin was
approved by the NLRB.
15. Kelly is upset with her supervisor and believes his conduct violates the terms of her union’s collective
bargaining agreement (CBA). The union filed a grievance on Kelly’s behalf. Which statement is true?
a.
The company has to pay Kelly a grievance penalty.
b.
The company can respond to Kelly’s charges in a private meeting with her.
c.
The company and the union must bargain in good faith if this issue is in violation of the
CBA.
d.
The company can fire Kelly as a troublemaker.
16. A company’s collective bargaining agreement has expired and negotiations are underway for a new
one. After one exhausting session, union leaders have decided management will not bargain in good
faith. The union declares it will be going out on strike the following midnight if an agreement is not
reached. The union:
a.
is allowed to go out on strike the following midnight.
b.
must give the employer at least seven days’ notice before going out on strike.
c.
must give the employer at least 30 days’ notice before going out on strike.
d.
must give the employer at least 60 days’ notice before going out on strike.
17. A state law prohibits firefighters and school teachers from going out on strike. Though they are
allowed to organize into collective bargaining units, state law prohibits them from striking. Such a
state law:
a.
is legal.
b.
is not legal since the U.S. Supreme Court has ruled such a state law violates the equal
protection clause of the Constitution.
c.
is not legal since the federal law (NLRA) preempts state law.
d.
is not legal because the right to form unions is illusory without the right to strike.
18. Employees of Mega Corp. have gone out on strike seeking better pay. Mega Corp. announces that if
the union does not end the strike it will begin hiring replacement workers. Which statement is correct?
a.
Hiring replacement workers during a strike is an unfair labor practice.
b.
Mega Corp can only hire replacement workers if the collective bargaining agreement
expressly gives the company the right to do so.
c.
Mega Corp can only hire replacement workers if it gives the union 14 days’ notice prior to
actually bringing in the replacement employees.
d.
Mega Corp can hire replacement workers at any time during a strike.
19. The duty of fair representation created by the NLRA requires that:
a.
a union represent all members impartially and in good faith.
b.
a union must pursue any member’s grievance against the employer.
c.
an employer, in communications with employees during a union organizing effort, must
fairly represent the effects it believes a union will have on the company.
d.
the NLRB certify only proposed bargaining units that it thinks the union can properly
represent.
20. The management and union representatives of Prime Manufacturing are bargaining a new CBA.
Management:
a.
may use a lockout at any time to pressure the union into compromise.
b.
may never use a lockout as a tactic to pressure the union.
c.
may use a lockout if the parties have reached an impasse in their bargaining and
management notifies the union before locking the employees out.
d.
may use a lockout only as a retaliatory measure if and when the union has threatened a
strike.
21. The Fair Labor Standards Act:
a.
wage provisions do not apply to professional or managerial employees.
b.
limits the number of hours an employer can require a person to work in any given week.
c.
does not apply to children.
d.
preempts any state wage regulation.
22. Jim was a mechanic. One day when he attempted to weld a car’s gasoline tank, it exploded and he was
hurt. He filed to collect workers’ compensation. His employer resisted on grounds that Jim had been
negligent and had also violated the express regulations of the company when he attempted to weld a
gasoline tank. Which statement is correct?
a.
Jim cannot recover if it is shown that his negligent conduct caused the explosion.
b.
Jim cannot recover if it is shown that he violated the express regulations of his employer.
c.
Workers’ compensation doesn’t apply in situations like this.
d.
Jim can recover even if he was negligent and violated the employer’s rules.
23. Wrongful discharge claims are generally based upon all EXCEPT:
a.
public policy.
b.
criminal law.
c.
contract.
d.
tort law.
24. Orson was fired from his job behind the ticket counter at the airport. He was loudly told to put his
personal belongings into a plastic bag and was led out by security guards in front of his co-workers
and customers. His supervisor told him not to return. Orson’s employer faces potential liability for:
a.
intentional infliction of emotional distress.
b.
whistleblowing.
c.
defamation.
d.
violation of the FLSA.
25. A union declares it will be engaging in a partial strike whereby its employees will alternate between
working for a period of time and then walking off the job for an indefinite time. Thus, employees may
work for a few days or only a few hours before walking off the job again. The employer claims the
union does not have the legal right to engage in a partial strike. Which statement is correct?
a.
The employer is correct. The union must either strike or work—it cannot alternate
between working and striking.
b.
The employer is correct only if the union does not state the specific hours or days workers
will be off the job. The law requires the union to provide the employer with at least seven
days’ notice of when workers will be off the job.
c.
The employer is not correct since the NLRA expressly states workers have a right to
engage in a partial strike.
d.
Whether the employer is correct depends on state law.
ESSAY
1. Discuss the requirements of the Family and Medical Leave Act.
2. Sandy worked for a small printing company. She found a new job that would pay much more. In
accordance with company policy, she gave her employer a two-week notice that she would be leaving.
Her employer was upset she was quitting, so he terminated her employment immediately. Sandy was
upset because she thought she had acted properly by giving her employer two weeks’ notice. Her new
employer will not be able to employ her for two weeks. Sandy believes her employer has breached the
employment agreement and she should be paid for the two weeks between jobs. Is she right? Explain.
3. Hanson Corporation is concerned that its employees are spending too much work time talking on the
telephone, sending e-mails, and using the Internet for personal uses. Discuss what steps Hanson may
legally pursue to protect its interests in productivity.
4. Rick and Allan want to start a union in the small factory where they work. Outline the basic
procedures they will need to follow to get a union recognized as the exclusive bargaining unit for the
company employees.
ANS:
5. Identify some of the trends and characteristics of organized labor. For example, discuss how the
statistics compare for percentage of government vs. private sector employees with union membership,
what occupational groups and industries have the highest percentage of unionized workers, and what
regions of the country have the highest and lowest union membership.