Chapter 5

Work Laws & Responsibilities

Required Work Forms

W-4 W-2 Social Security Work Permit

W-4 Form When you report to work, you must fill out a

W-4 form. The information that you put on your W-4

determines the amount your employer will withhold from your paycheck for income taxes.

The employer sends this money to the government as partial payment of your income taxes.

Allowances reduce the amount of tax withheld from your paycheck.

W-4 Form The more allowances you claim, the less tax you will

have withheld.

THIS DOESN’T DECREASE THE AMOUNT OF TAXES THAT YOU OWE-- it just decreases the tax payments your employer makes for you.

If you have too little withheld, you will have a large tax bill to pay at the end of the year.

If you qualify, you may claim exempt status. This status applies only to people who will not earn enough that year to owe any federal income tax.

Social Security Form All workers must have a social security

number and all workers must pay a social security tax.

Your social security number is your permanent work identification number.

Employers withhold social security taxes from your pay and contribute matching amounts.

Social Security Form

The amounts you earn and the amounts contributed for social security throughout your work life are credited to your social security account number.

When you become eligible, (retirement) benefits are paid to you monthly based upon how much you paid into your account.

Work Permit Application

Many states require minors- people under 18- to obtain a work permit before they are allowed to work. You can pick it up at school.

You provide your social security number, proof of age, and have parent or guardian sign. Your employer, a physician, and the school complete the rest.

W-2 Form A summary of the income you earned during the

year and all amounts the employer withheld for taxes—includes federal, state, and local income taxes, and social security tax.

You should compare your W-2 form to your pay stubs to make sure that the reported amounts are accurate.

Your employer also sends a copy of your W-2 to the government.

The employer must provide you with your W-2 form no later than January 31 because you must file your W-2 form with your tax return (due April 15)

Employment Laws

The Department of Labor is responsible for enforcing labor laws that:

1. provide unemployment, disability, and retirement insurance benefits.

2. establish a minimum wage and regular working hours.

3. provide equal opportunities and prohibit discrimination

4. establish safe working conditions

Employment Laws

Laws covering minors specify:

1. Safety precautions and working conditions that are more extensive than for adults.

2. a maximum number of hours and times minors can work during the school year.

3. a work permit for those under age 16 in some states.

Social Security Act—passed in 1935

Established a national social insurance program that provides federal aid for the elderly and for disabled workers.

In 1965, the Medicare provision was added—provides hospital and medical insurance for elderly retired workers.

Provides these benefits: old age retirement income survivorship income disability income health insurance

Self-employed workers pay their social security contributions when they pay their income tax.

Contributions are mandatory—FICA and HI are the deductions from your paycheck that go to the US Treasury.

Unemployment Compensation

Every state must have an unemployment insurance program.

This insurance provides benefits to workers who lose their jobs through no fault of their own.

After a waiting period, laid-off or terminated workers may collect a portion of their regular pay for a certain length of time. Workers must meet certain requirements to qualify.

Fair Labor Standards Act —also known as Wage and Hour Act

This act establishes a minimum wage and requires hourly workers to be paid overtime wages of 1 ½ times their hourly rate for hours worked beyond 40 hours in a week.

Minimum wage is the legally established lower limit on wages employers may pay.

Tips are not considered wages, so they are not included in calculating the minimum wage.

Worker’s Compensation

An insurance program that pays benefits to workers and their families for injury, illness, or death that occurs as a result of the job.

The employer is responsible for employee injuries and illnesses that are a result of their employment, even though they may have nothing to do with the injury or illness.

Family and Medical Leave Act—passed in 1993

Allows employees to take up to 12 weeks of unpaid leave in a 12-month period for certain medical and family situations. Birth of a newborn, including adoption of a child Care of an immediate family member with a

serious health problem Medical leave when the employee is unable to

work because of a serious health condition

Laws Against Discrimination in Employment

Equal Pay Act—prohibits unequal pay for men and women doing similar work.

Civil Rights Act of 1964—prohibits discrimination in hiring, training, and promotion on the basis of race, color, gender, religion, or national origin.

Age Discrimination in Employment Act—prohibits discrimination in employment decisions against people age 40 and over.

Americans with Disabilities Act—prohibits discrimination on the basis of physical or mental disabilities.

Responsibilities on the Job

Employee Responsibilities to Employers

Competent work—do your best to produce the highest quality finished product for your employer. Your work should be marketable—of such quality that the

employer can sell it or use it to favorably represent the company.

Punctuality—arrive to work on time, only take allotted breaks, and do not leave early.

Pleasant Attitude—it is important to be pleasant and easy to get along with. You should be courteous to customers, because you represent the company to others.

Employee Responsibilities to Employers

Loyalty and Respect—you should not spread rumors and gossip about your employer or job. Loyalty includes showing respect to the employer and the company on and off the job.

Dependability—when you say you will do something, follow through. Your employer should be able to depend on you to do what you were hired to do.

Initiative—you should not have to be told everything to do, and show initiative—recognize what needs to be done and do it without always having to be told.

Employee Responsibilities to Employers

Interest—show interest, project an attitude of wanting to learn all you can and of giving all tasks your best effort.

Self-evaluation—the ability to take criticism and to assess your own progress is important to you and your employer. You should be able to recognize your own strong points and limitations and do a realistic self-evaluation of their job performance.

Employee Responsibilities to Other Employees

Teamwork—you are part of a team and you need to do your share of the work

Thoughtfulness—be considerate of co-workers to promote a good work atmosphere for everyone, including customers.

Loyalty—in addition to being loyal to your employer, you should be loyal to co-workers

Employee Responsibilities to Customers

Helpfulness—it is your responsibility to help customers find what they want or to do what is needed to make a sale.

Courtesy and Respect—whether or not you like the customer, that customer actually pays your wages by keeping your employer in business. Your attitude should always be respectful and courteous.

Employer Responsibilities Adequate supervision—employees need proper

supervision to do a good job. This includes appropriate instruction in the safe use of equipment, training new employees in their job tasks, helping employees solve problems on the job, and distributing information downward from management and upward to management.

Fair Human Resource Policies—policies on hiring, firing, raises, advancement, and dispute resolution need to be fair and well defined. Employees should know clearly what is acceptable and what is not acceptable performance, what the standards are for advancement and raises, and what constitutes grounds for suspension or discharge.

Employer Responsibilities Safe Working Conditions—all employees must be

provided with safe equipment, a safe, working environment, and adequate training for working under dangerous conditions. Special protective equipment and clothing and warning signs must be provided to employees working in hazardous situations.

Open Channels of Communication—employers need to communicate with employees so that all employees have the opportunity to express concerns, ask questions, and make suggestions. Lack of open channels of communication can result in poor worker morale and low work output.

Employer Responsibilities Recognition of Achievement—employers need to

provide some form of reward for above-average performance. Merit pay raises, bonuses, and advancement opportunities encourage workers to do their best work. Employees also respond to non-monetary rewards, such as providing extra time off or simply complimenting exceptional work in front of employees.