Key Terms

business purpose exception

an exception to the Electronic Communications Privacy Act of 1986 that permits employers to monitor all oral and electronic communications, assuming they can show a legitimate business purpose for doing so

closed shop

a union environment that requires new hires to be automatically enrolled in the labor union and union dues to be automatically deducted from their pay

codetermination

a concept popular in Europe that gives workers the right to participate on the board of directors of their company

collective bargaining

union negotiations with an employer on behalf of employees

comparable worth

the idea that pay should be based upon a job holder’s worth to the organization rather than on salary history

consent exception

an exception to the Electronic Communications Privacy Act of 1986 that allows employers to monitor employee communications provided employees have given their consent

EEOC

the Equal Employment Opportunity Commission, created by the U.S. Civil Rights Act of 1964 and which attempts to eliminate discrimination in the workplace based on race, gender, or creed

employment at will

a legal philosophy that holds that either the employee or the employer may dissolve the employment arrangement at will (i.e., without cause and at any time unless an employment contract is in effect that stipulates differently)

OSHA

the Occupational Safety and Health Act, which governs workplace safety, and the Occupational Safety and Health Administration, which administers the act at the federal level

pay ratio

the number of times greater the average executive’s salary is than the average worker’s

right-to-work law

a state law that says a worker cannot be forced to join a union

sexual harassment

unwelcome touching, requests for sexual favors, and other verbal or physical harassment of a sexual nature from a supervisor, coworker, client, or customer