3.01 B

1. 3.01 B Union, Union Shops, Employment at will, Unemployment, Social Security, Workers Comp

2. Employment-at-Will • An employer or employee can terminate employment “at-will” for any reason or no reason without being liable for breach of contract • Certain types of employees are not subject to employment-at-will laws including employees with contracts and unionized employees.

3. Union • An organization of employees formed to ensure favorable work conditions, wages, work hours, benefits and grievance procedures

4. Types of Shops • Closed shop • Employees must join the union before being hired • Union shop • Non-union employees can by hired, but must join union within a certain amount of time

5. Types of Shops • Agency shop • Employees are not required to join the union, yet they still must pay union dues • Open shop • Employees are not required to join the union or pay union dues

6. Right to Work Law • State law that prohibits employees from requiring employees to join a union or pay union dues as a condition of employment • Airline and railway employees are not protected by this law • What are the right to work states?

7. Right to Work States

8. Unemployment Compensation • Insurance program that provides temporary income for qualified individuals who are unemployed through no fault of their own • Eligibility requirements for collecting unemployment compensation varies by state • The North Carolina Division of Employment Security handles unemployment claims

9. Unemployment Benefit Requirements • In North Carolina, any individual wanting to collect or continue to collect unemployment compensation must: • Register for work through the Employment Security Commission • File a claim for each week that benefits are needed • Actively seek employment during any week unemployment benefits are received

10. Denial of Unemployment Benefits • In North Carolina, an individual may be denied unemployment compensation if he/she: • Quits a job • Gets fired from a job • Refuses a referral job • Turns down a job offer • Refuses to Approved Commission Training • Fails to complete Approved Commission Training

11. Social Security Act • Enacted in 1935 to provide financial assistance to eligible workers and their dependents in the form of retirement, disability, and death benefits • The act established the social insurance program commonly called Social Security • Federal insurance program funded by the tax contributions of employees and employers

12. Social Security Disability Benefit • Replaces income when a severe long lasting disability or terminal illness prevents eligible person from doing “any substantial work” • Claim is filed through the through Social Security Administration • Six month required elimination (waiting) period • Periodic review of status to continue benefits

13. Social Security Retirement Benefit • Eligible persons can receive a percentage of social security by age 62, but the individual can receive full benefits at either age 65 or 67 • A person can receive social security retirement benefits if the spouse dies • Medicare is also considered a social security benefit

14. Social Security Death Benefit • Lump sum payment given to the surviving spouse upon the death of a person who worked long enough to qualify for Social Security benefits • The average death benefit is $255

15. Worker’s Compensation • A government-regulated program that provides medical benefits and income to employees who are injured or who develop a disability or disease as a result of their job • Indemnifies (pays) employee for their loss of income • Insurance is paid for by employer