Employment Law Terms

Employment Law Terms (N-P)

This is the sixth post in a series discussing some basic employment law terms. I hope this will help employers better understand the words that frequently come up in employment law. If there’s a term you’re wondering about that isn’t discussed here, let me know.

Here are links to the previous installments if you missed them:

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“National Labor Relations Act”:  A federal law giving non-government employees rights to engage in concerted activity, including joining a union. Enforced by the National Labor Relations Board (NLRB).

“National origin discrimination”:  Discrimination prohibited by Title VII and some state anti-discrimination laws based on a person being from particular country or part of the world, having a certain ethnicity or accent, or appearing to be of a certain ethnic background.

“NLRB”:  The National Labor Relations Board. A federal agency that oversees and enforces the National Labor Relations Act. Unlike most agencies, the NLRB dictates policy primarily by adjudication of cases rather than rulemaking.

“Noncompetition agreement”:  A contract that restricts an employee from working for a competitor, usually during and within a certain period of time after the end of employment with a given employer. Often referred to as a “non-compete.”

“Non-exempt”:  Term used to describe employees who are eligible to receive overtime under the FLSA and/or state laws. Can apply to both hourly and salaried employees, as well as those paid on another basis.

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“OFCCP”:  The Office of Federal Contract Compliance Programs. A division of the U.S. Department of Labor that enforces affirmative action requirements on entities that contract with the federal government. (There is some consideration of the OFCCP joining the EEOC.)

“Offer letter”:  Correspondence to a job applicant expressing willingness to hire the individual to work for the employer under certain terms. Sometimes the employee is asked to sign off on the offer letter. Other times an implied contract may arise based on the employee’s acceptance of the position in reliance on the terms of the offer letter.

“Organize”:  In the labor law context, to join a union for the purpose of collective bargaining with an employer.

“OSHA”:  Either the Occupational Safety and Health Act or the Occupational Safety and Health Administration. Respectively, the federal law and agency that address workplace health and safety standards across the country.

“Overtime”:  Extra time worked by employees for which they receive additional compensation. Under the FLSA, non-exempt employees must receive time-and-a-half their regular rate of pay for hours worked beyond 40 hours in a workweek. Collective bargaining agreements, company policy, employment contracts, or state laws may provide for overtime compensation in other circumstances.

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“Past practice”:  Unequivocal way of doing something regarding a workplace matter over a period of time. In some cases arbitrators will enforce a past practice as a term and condition of employment under a collective bargaining agreement.

“Permissive subject of bargaining”:  A topic that either side may raise in collective bargaining negotiations, but may not insist on to impasse.

“Pension”:  Money paid to retirees in recognition of their past service to an employer. Most commonly refers to a defined benefit arrangement, where the retiree receives a fixed amount of money based on time worked, salary history, etc. Defined contribution plans, like 401(k)’s, are increasingly more popular.

“Picketing”:  An activity performed by employees involved in a labor dispute to demonstrate and seek public support for their position. Often involves employees carrying signs near the entrance to the employer’s facility.

“Prevailing wage”:  The hourly rate of pay that employers must pay to workers on covered public works projects. Usually varies based on location, job type, and other factors.

“Probationary period”:  Time given to an employee at the beginning of employment to demonstrate ability to perform the job. Often used in non-union workplaces, but more significant where a collective bargaining agreement makes it more difficult to remove an employee after the probationary period because the employee earns “just cause” protection.

“Professional exemption”:  Employees performing jobs consistent with their advanced training in a particular field may be exempt from overtime under the FLSA and/or state law. Common examples of “professionals” include doctors, lawyers, teachers, accountants, and engineers.

More Employment Law Terms Coming Soon

Stay tuned for the next installment of employment law terms: Q-?

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If you think I’m missing any employment law terms that should be included above, please email me to let me know.