Acme Office Machines is opening a new factory and administers an employment test to 100 majority applicants (white males) and 50 pass the test and are hired. Under the four-fifths rule, if 100 minority applicants take the same test, how many of the minority applicants must pass and be hired for Acme to avoid charges of discrimination by the EEOC? 40 The answer is 40 because 80 percent of 50 equals 40. (50 X .8) = 40
The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) requires that employers must offer to employees, their spouses and dependents whose employment has been terminated health coverage for a period of between 18 and 36 months at the same price the employers would have to pay. This is to ensure that employees and their families continue to enjoy health care at a reduced cost, even if they are paying it themselves, until the employee finds new employment . The Family and Medical Leave Act of 1993 mandates that employers with more than 50 employees must offer their employee up to 12 weeks of unpaid leave in a 12 month period for the birth and care of a child, adoption or foster placement of a child, care of an immediate family member or severe health condition of the employee. These are the provisions of the Family and Medical Leave Act (FMLA). The Older Workers Benefit Protection Act of 1990 prohibits age-based discrimination with respect to the application of early retirement and other benefit plans. The Older Workers Benefit Protection Act (OWBPA) prohibits such age-based discrimination. Private pension plans are federally regulated by ERISA (5-letter acronym). ERISA (Employee Retirement Income Security Act) is the Act that regulates private pension plans through set standards and controls. However, it does not mandate that employers provide a pension plan. According to the rules in ERISA, after employees meet a specific minimum number of years of service, their pension plans must provide them with vested rights in their accrued benefits. This ensures that employees, regardless of their employment status at the time of retirement, are guaranteed the accrued benefits. The exception is where the benefit amount is small and so the employer can pay out the vested benefits when the employee leaves . ERISA (Employee Retirement Income Security Act) is administered by the IRS, the Department of Labor and the Pension Benefit Guaranty Corporation (PBGC). The role of the PBGC is to ensure that the minimum guaranteed benefits are paid to employees when the plan is terminated. The PBGC is funded by employers. The Occupational Safety and Health Act (OSHA) applies to all employers and employees except the federal government, the state, or political subdivision of the state. This is the exception made in the Act. However, each federal agency is required to set up and observe a health and safety program which is monitored by the Occupational Safety and Health (OSH) Administration.