Page 242 - Introduction to Business

216 PART 2 Managing Business Behavior

certain ages). This law has become more important as the workforce has aged, and
the end of mandatory retirement has had a tremendous impact on U.S. workforce
demographics. Interestingly, this law does not prohibit age-based discrimination
with respect to workers younger than 40, although some states like New Jersey have
passed laws protecting employees of all ages against age discrimination.

Occupational Safety and Health Act of 1970. This law mandates that
employers keep records regarding workplace accidents and submit to random fed-
eral government work site safety inspections. It also regulates the types of safety
equipment employers must provide employees. Firms found to be in violation of
federal health and safety standards can be fined or even shut down. This law is
administered by the U.S. Department of Labor.

Employment Retirement Security Act of 1974. This law regulates
employee defined benefit pension plans. While it does not require that employers
have pension plans, it does bring existing defined benefit pension plans under
strict federal government regulation. Pursuant to ERISA, employees participating in
pension plans vest within a prescribed number of years and are provided insurance
against the loss of benefits under the plan. The Pension Benefit Guaranty Corpora-
tion administers the insurance program. ERISA also regulates how the investment
funds of the pension plans are managed and makes sure that the interests of the
employee beneficiaries are the top management concern.

Pregnancy Discrimination Act of 1978. This law states that pregnant
individuals are protected under U.S. discrimination laws. More specifically, the law
states that pregnancy is a disability and qualifies pregnant women to receive the
same benefits they would with any other type of disability.

WARN Act of 1988. This law requires employers to give employees at least
60 days notice of plant closures. Employers must also give similar notice if they
are going to lay off 50 or more employees. The law was enacted in response to a
rash of company plant closures and layoffs in the 1980s that were made without
virtually any notice to employees. The U.S. Department of Labor now regulates
these procedures.

Americans with Disabilities Act of 1990. This landmark piece of federal
legislation, administered by the EEOC, prohibits employment discrimination
against individuals with disabilities. It defines a person with a disability as:
Prong One. A person with a physical or mental impairment that sub-
stantially limits one or more major life activities or
Prong Two. A person with a record of such a physical or mental impairment or
Prong Three. A person who is regarded as having such an impairment 15
The Prong One definition of disability is relatively easy to understand. It applies
to individuals who suffer current impairments that substantially limit their present
life activities. For example, the golfer Casey Martin has a degenerative condition in
his right leg that substantially limits his ability to walk. The U.S. Supreme Court, in
Martin’s lawsuit against the Professional Golf Association (PGA), found him to be
protected by the Americans with Disabilities Act (ADA) and allowed him to use a
golf cart rather than walk as required under PGA rules when participating in PGA
golf tournaments. 16

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