1. Handling Government Regulations Section 8.2

2. Laws That Affect Employees • Small and large businesses are affected by the laws of federal, state, and local governments. • Many laws affect hiring, firing, and paying of employees.

3. Laws Against Discrimination in Hiring • Equal Empoyment Opportunity Commission (EEOC) – government agency charged with protecting the rights of employees. • Employer cannot refuse to hire, promote, or give pay increases to an employee based on age, race, national origin, gender, or physical challenge.

4. Child Labor Law • Protects young workers • Persons under 18 cannot work in hazardous jobs • Person younger than 16 are restricted to hours and times they can work. • Youths under 14 may work only certain jobs. Examples: delivering newspapers, motion picture, theatrical performances

5. Laws Against Wrongful Termination • Employees have the right to sue his or her employer for damages if he or she is terminated for an unacceptable reason.

6. More Laws that Affect Employees • Sexual Harassment • Americans With Disabilities Act • Family Medical Leave Act • Laws Requiring Equal Pay for Equal Work • Laws Requiring Fair Labor Standards • Laws Requiring Workplace Safety and Health

7. Laws that Regulate Trade • Laws were created to preserve competition and fairness in the marketplace. • Price Discrimination: charging of different prices for the same product or service in different markets or to different customers. Clayton Act of 1914 Robinson-Patman Act of 1936

8. Consumer Protection Laws • The Food and Drug Administration (FDA)-researches and tests new products and inspects the operations of food and drug manufactuerers. • Consumer Product Safety Commission (CPSC)-serves as a watchdog for consumers over products that may be hazardous.

9. Consumer Protection Laws cont…. • The Fair Packaging and Labeling Act- requires manufacturer labels truthfully list all ingredients and raw materials used in production.

10. Uniform Commercial Code (UCC) • Group of laws that regulates commercial business transactions • Warranty of Merchantability- guarantee about the quality of goods or services purchased that is not written down or explicitly spoken.

11. Truth in Advertising Laws • Misleading ads- ads should not mislead customers about what your product can do. • Sale Prices- you can not offer a reduced price on your product unless it is offered at the regular price for a period of time.

12. Truth in Advertising Laws cont…. • Price Comparisons- Cannot use list price as your comparison price unless your product has sold for that amount. • Bait and Switch- an illegal way of selling that involves advertising a product at a very low price in order to attract customers who are then persuaded to switch to a more expensive product.

13. Tax Laws • Sales Tax • Payroll Taxes • FICA (Federal Insurance Contribution Act • Social Security • Federal Unemployment Tax- to help workers who are temporarily unemployed. • Business Income Taxes- businesses are required to pay federal and possibly state and local taxes on the income it earns.