The Family and Medical Leave Act of 1993 and workplace protections
Business and Legal Matters Task 1 The Family and Medical Leave Act of 1993 was an important piece of legislation that is affiliated with the rights of workingmen and workingwomen. There are a number of different provisions which employees have under the aegis of this piece of legislation. Nonetheless, three of them are much more salient than the others. The first encompasses the provisions for eligibility, which state employees are eligible if they’ve worked 1,250 hours at a place of employment for 12 months for a 12 month period (Department of Labor, 2017). The most important provision is that such employees then can take 12 weeks off for a series of events in which their parents, children, foster children, or themselves undergo traumatic experiences such as illness, death, birth, etc (Personnel Management, 2017). Thirdly, such leave is unpaid and enables employees to return to work after that time. The Family Leave and Medical Act of 1993 certainly applies to situation A. The only way that the employee would have been able to take off for 11 weeks since his wife had given birth prematurely to twins is because of this legislation. Again, the foundation of this legislation is that if employees meet the eligibility requirements, they are able to take off from work for major life events such as birth. Additionally, the fact that Employee A’s supervisor is allowing him to return to work at the same rate of pay is largely permissible because of this act. This legislation states that no negative occurrences should take place—such as retaliation—for employees taking up to 12 weeks off. There is no way that a violation of the Family Leave and Medical Act of 1993 transpired in situation A. Employee A was able to take time off because of his wife’s childbirth. Moreover, he was able to return to his place of employment within the allotted 12 weeks. Finally, he was even able to do so at his same rate of pay. The crux of the matter is that this particular act does not specifically allow for employees to earn compensation while they are taking time off from work. In fact, it states that they will not receive payment for that time. Thus, there is no violation of this law.
There are numerous provisions for the Age Discrimination in Employment Act of 1967, which was specifically designed to curb discrimination for employees 40 years and older. Moreover, those provisions are extended to both employees and those applying for jobs. The most important of those provisions is that any discrimination of such an employee or applicant based on his or her age for any facet of a job is illegal (Equal Employment, 2008). Similarly, it is illegal to retaliate against employees or applicants who may have cause to suspect there is discrimination and then file motions about it. The third most important provision is that employers can prefer older employers to younger ones even if it causes a negative impact on workers under the age of 40 (Department, 2017). There are multiple ways in which the Age Discrimination in Employment Act of 1967 applies to Situation B. Firstly, Employee B is 68 and over 40 years old, which means the act applies to him because of his age. Secondly, this employee was not granted a promotion due to his age. That fact alone denotes that this law is applicable to this situation, especially when one considers this employee is over 40 years of age. Additionally, this situation applies to the foregoing act because the individual who received the promotion that Employee B was available for was under 40 years old. He is much younger than Employee B. In retrospect, Employee B fits the criteria for this act. Similarly, his employer, which decided to not give him a promotion because of his age and promoted someone much younger than him, also fits the criteria for this act. Situation B is a clear case of age discrimination according to the act established in 1967. The primary basis for this assessment is the performance reviews each of the employees received in this scenario. Employee B’s work was described as above average and he did not receive the promotion. His co-worker’s efforts were only described as adequate and he receive the promotion. When one considers the fact that Employee B is over double the age of his co-worker who received the promotion, as well as the fact the situation states he did not receive the promotion because of his age, it is apparent this situation violates the aforementioned act. The Americans with Disabilities Act of 1990 was a formidable piece of legislation for prohibiting discrimination against the disabled in the United States. Essentially, this act was created to ensure the civil rights of disabled Americans were maintained. Out of the plentiful of provisions specified by this law, one of the most important was that disabilities were not grounds to discriminate upon employees. Thus, it became illegal to not hire or fire someone because they were or became disabled (Employment Opportunity, 2005). Another provision for the act is that public places must have accommodations for the disabled. Examples include ramps for wheel chairs and specific bathroom accommodations in hotels. Another important provision is that accommodations for the disabled were to encompass the realm of telecommunications. The Americans with Disabilities Act of 1990 applies to both parties in situation C, both the employee and the applicant. The applicant is disabled. He needs a wheelchair to move about. Thus, the provisions of this act apply to him. Moreover, a foremost part of this act is to prevent discrimination, preferential, or non-preferential treatment due to disability. The fact that the applicant was attempting to get a job means this act applies to him in this situation. Moreover, this act states that it extends to those both who have jobs and who are applying to jobs, which is another way it relates to the applicant. This situation is applicable to the employer because it does not have accommodations for the disabled. Although it has an elevator, it is not accessible for those in wheelchairs. Therefore, these accommodations are insufficient for the disabled. A violation of the Disabilities Act has in fact occurred with this situation. The employer does not want to provide accommodations for a disabled person to work the particular job he is applying for. The employer has the option of doing so, and has instead elected not to do that work. There are only two elevators that they would have to modify and spend $1,000 in total. Thus, they are not accommodating the disabled and discriminating on a disabled applicant because they do not want to alter their work environment. Doing so is illegal and a violation of the Disabilities Act. Task II A sole proprietorship is a small unincorporated company which is typically owned and operated by a single individual. One of the disadvantages of a sole proprietorship is that there are very few options for subsidizing healthcare—individuals typically have to purchase it. Other disadvantages are that all of the work must be done by the individual. An advantage is that the individual has full control over the entire business; another is that tax processes are simplified. A general partnership is an agreement between two or a limited number of people to engage in business together. Disadvantages include that there is frequently few limitations on personal liability, and that one’s partners can subject one to financial risk. Advantages include the degree of control available in a general partnership and the work schedule flexibility it involves. Limited partnerships are partnerships in which not all of the individuals are actually owners and operators of the business (like a general partnership). Advantages include limited personal liability and limited taxation requirements. Disadvantages include the fact the general partner manages the partnership so there is less control. Another disadvantage is that there are many ways to implement a limited partnership, some of which advantage the general partners instead of the limited partners. A C corporation is a general corporation (not an S corporation). One of the advantages of this type of corporation is that it is a separate legal entity (Wood, 2012). As such, there is limited liability associated with it. Another benefit is that it has shareholders who are responsible for some of the costs. Disadvantages include a tax structure that effectively taxes owners twice (they book) and having officers govern it. An S corporation is a type of corporation with a different tax system than a C corporation. Advantages are that S corporations are only taxed once and there are limited liabilities for those involved with it. The disadvantages of these corporations relates to shareholder restrictions. Shareholders must be U.S. citizens. Also, there can be no more than 100 shareholders. A limited liability company is a combination of a partnership and a business. The main advantages are that there are limitations to the personal liabilities of members of such an entity. Another is that members are involved in the management of the entity as a whole. One of the disadvantages is that such entities are managed at the state level, so there’s differences in how they work. Another is that taxes can be assessed for either partnerships or companies with this option (Lau and Johnson, 2011). A. 2. Sole Proprietorships are dangerous because with them, the individual has no limits to liability. Income taxes are not bad with this option because individuals are only taxed once. Continuity of business is relatively simple, since if an owner were to retire the proprietorship would end. An individual has sole control of this entity and takes all the profits. In a general partnership there are no limits to liability. Partners are only taxed once as individuals and must file taxes separately. The continuity of the organization goes from one partner to the next, although partners can specify percentages if they like. Control of the organization is between the partners. The partners split the profits as they like, which is generally speaking split evenly (Lau and Johnson, 2011). In a limited partnership there are liability limits for the limited partners and less for general partners. Limited and general partners file income taxes individually. Organizational continuity is shared between the partners with the limited partner last in line. Limited partners have minimal control and day to day management. The partners agree how to split the profits. A (C) corporation’s liability is limited to business assets. Corporations are subject to net income taxes and dividend taxes at all three taxation levels. Organizational continuity propagates despite changes in ownership since corporations are legal entities. Chief executive officers are in control of day to day management. Profits are split between shareholders and owners in accordance to their ownership percentages. S Corporations have limited liability confined to business assets. They are taxed at the dividend level; individuals pay income taxes too (Lau and Johnson, 2011). Continuity of the organization is ongoing to shareholders despite ownership changes. Control goes to the chief executives. Profit retention is in accordance to ownership percentages. LLCs have limited liability confined to business assets. LLC’s can be taxed like C corporations or S Corporations. LLC’s can decide how they want to facilitate organizational continuity and declare so in writing. Those who form an LLC have daily responsibility for their operation. Profit retention is distributed in accordance to the written desires of LLC members. M E M O R A N D U M TO: Clients and Friends of the Firm FROM: You RE: Future Business DATE: November 24, 2017 Dear Mr. Business Owner, I have recently been apprised of the situation facing your manufacturing business and your need for expansion. It sounds as though your enterprise has outgrown sole proprietorship, and certainly will if you expand geographically and add an additional factory out of state. These factors and others make it prudent for you to adopt a Limited Liability Company model of doing business, abandoning your sole proprietorship status. The most cogent reason for doing so is the difference in liability for which you will be responsible. As you are well aware of, sole proprietors assume all responsibility for their work and those of the contractors who are working for them. Moreover, there is no limit to that liability. However, if you switch to an LLC you will have a limited liability only spanning your business assets. Currently, if there was a bad enough accident, you could lose your personal assets such as your home and vehicle to cover those expenses. The risk simply is not worth it. Additionally, there is a substantial amount of flexibility involved with an LLC that is ideal for your desire for expansion. If you are an LLC you can sell shares of your business to gain the necessary capital to broaden your market and do business both in and out of state. Moreover, doing so will not affect your liability status. Perhaps the best part of this facet of an LLC is you can dictate the terms of the continuity of the organization, control of daily operations, profit retention. Granted, you must reach these terms in agreement with those who sell shares to. However, there are no dictates about how you facilitate any of these three crucial areas. Thus, in optimal circumstances you can gain your capital, reduce your liability, and retain control the management of your organization. You can even do so while determining your share of the profit retention, and those to whom you sell shares. You Your Number Your Email References Lau, T., Johnson, L. (2011). The Legal and Ethical Environment of Business. Retrieved from https://catalog.flatworldknowledge.com/bookhub/reader/1679?e=lau-ch11_s03 Office of Personnel Management. (2017). Pay & Leave. https://www.opm.gov/ Retrieved from https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/family-and-medical-leave/ The U.S. Equal Employment Opportunity Commission. (2008). Facts about age discrimination. https://www.eeoc.gov/ Retrieved from https://www.eeoc.gov/facts/age.html The U.S. Equal Employment Opportunity Commission. (2005). The ADA: Your employment rights as an individual with a disability. https://www.eeoc.gov/ https://www.eeoc.gov/facts/ada18.html United States Department of Labor. (2017). Age discrimination. https://www.dol.gov/ https://www.dol.gov/general/topic/discrimination/agedisc United States Department of Labor. (2017). FMLA (Family & Medical Leave). https://www.dol.gov/ Retrieved from https://www.dol.gov/general/topic/benefits-leave/fmla Wood, R.W. (2012). C or S corporation choice is critical for small business. www.forbes.com Retrieved from https://www.forbes.com/sites/robertwood/2012/05/03/c-or-s-corporation-choice-is-critical-for-small-business/#18bea9131ba3
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