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Farmer School of Business Chapter 3 The Legal Environment:  Equal Employment  Opportunity and Safety
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Farmer School of Business National Labor Relations  Act, 1935 Protects the rights of employees and employers, encourages  collective bargaining , and curtails certain private sector  labor and management practices, which can harm the  general welfare of workers, businesses and the U.S.  economy. Guarantees workers the right to join unions without fear of  management reprisal.  Created the National Labor Relations Board (NLRB) to  enforce this right and prohibited employers from committing  unfair labor practices that might discourage organizing or  prevent workers from negotiating a union contract.
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Farmer School of Business NLRA Five types of conduct are made illegal: 1. Employer interference, restraint, or coercion directed  against union or collective activity. 2. Employer domination of unions. 3. Employer discrimination against employees who take  part in union or collective activities. 4. Employer retaliation for filing unfair labor practice  charges or cooperating with the NLRB. 5. Employer refusal to bargain in good faith with union  representatives.          
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Farmer School of Business Fair Labor Standards  Act, 1938 Establishes minimum wage, overtime pay, recordkeeping,  and youth employment standards affecting employees in  the private sector and in Federal, State, and local  governments.  Covered nonexempt workers are entitled to a  minimum  wage  of not less than $7.25 per hour effective July 24,  2009.  Covered nonexempt employees must receive overtime pay  for hours worked over 40 per workweek at a rate not less  than one and one-half times the regular rate of pay. There  is no limit on the number of hours employees 16 years or  older may work in any workweek. 
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Farmer School of Business FLSA 3 classifications of employees, determined by the  employees’ primary job duties: Exempt : requires advanced education or knowledge, work in  an original and creative artistic field, perform work which is  intellectual and varied in character (the accomplishment of  which cannot be standardized as to time), those who  regularly exercise discretion and judgment. Non-exempt : paid a weekly salary, rather than an hourly  wage.  Subject to wage and hour laws, i.e. overtime pay. Hourly : paid on an hour-by-hour basis. Pay for an hourly  employee is calculated as hours worked x rate.  Considered  to be eligible for overtime if they work over 40 hours in a  workweek.
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Farmer School of Business FLSA Recordkeeping: Employers must display an  official poster outlining the requirements of the  FLSA. Employers must also keep employee time  and pay records.  Governed by the Department of Labor.
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