Cost Club Scenario Essay

Custom Student Mr. Teacher ENG 1001-04 26 September 2016

Cost Club Scenario


Every employee has fundamental rights in the workplace that include their right to privacy, fair compensation and free from discrimination. Even applicants have rights before they are hired as an employee. Some of those rights include discrimination that is based solely on a person’s race, gender, age, religion, national origin, or during the hiring process (FindLaw, 2014).

Employee Privacy

* Employees have the right to privacy with regards to their personal possessions * This includes their purses, handbags. Briefcases, lockers.* Employees have limited rights with respect to e-mail messages and internet usage while using Cost Clubs computer system * Employers do not have the right to conduct a credit checks or background checks on an employee or perspective employee without the express written permission of the employee (FindLaw, 2014).

Employee Unions

Under the National Labor Relations Act (NLRA), employers are forbidden from interfering in an employee’s right to organize, or to join or assist in a labor organization for collective bargaining purposes, or prohibit working together to improve terms and conditions of their place of employment. Union employer’s may not coerce their employees in exercising any of their rights such as (National Labor Relations Board, 2014): * It is illegal for an employer to threaten their employees with the loss of their jobs or benefits if they choose to join or vote for a union or participate in protected concerted activity. * Threaten employees with plant closure should their employees choose to have union representation.

* Employers are not to question employees about their union activities or sympathies * Promise employees benefits in order to discourage union support * Punishing employees for engaging in union or protected concerted activity * Retaliating against an employee by transferring, laying off, terminating, assigning employees to more difficult work task or for filing an unfair labor practice charges or participating in an NLRB investigation (National Labor Relations Board, 2014).

Occupational Safety and Health Administration

Under the Occupational Safety and Health Administration (,OSHA) employers have a responsibility to their employees to provide a safe environment for their employees. Employers are responsible for providing their employees with a workplace free of serious hazards and must follow all OSHA safety and health standards as well as identify and correct any safety or health problems found. It is also the employer’s responsibility to (United States Department of Labor, 2014). * Keep employees informed about hazards through the offering of training, labeling, alarms, systems that are color coded, material safety data sheets that pertain to chemicals and other methods.

* Employees are to be trained in a manner in which they can fully understand * Employers are to maintain accurate and complete records of any work-related injuries or illnesses that may occur in the workplace. * Employers are to post any citations, injuries and illness data where is it easily viewed by employees. * OSHA is to be notified by the employer within eight hours should there be a workplace fatality or when three or more workers have been injured or hospitalized due to an accident. * Display the official OSHA poster that describes the rights and responsibilities in plain view for employees to read per the OSHA Act (United States Department of Labor, 2014).

Employee Retirement Income Security Act

Compliance assistance under the Employee Retirement Income Security Act (ERISA) sets the minimum standards for retirement and health benefit plans in private industry. Although ERISA does not require an employer to provide a retirement plan or to provide benefits it only requires those who have established plans meet and follow a level of standards. ERISA covers retirement, health, and other welfare benefit plans. (United States Department of Labor, 2014): * Meet ERISA standards of conduct

* Employers are to assure that the funds of the plan are protected and that participants who qualify will receive their benefits. * Employers are to include new health laws
* Employers are to provide a continuation of health care coverage for an employee that due to certain events would result in a reduction ,in their benefits. * The Health Insurance Portability and Accountability Act (HIPAA) amended ERISA to make health care coverage available for employees that have either been terminated or have quit (United States Department of Labor, 2014).

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is responsible for setting and establishing a minimum wage, overtime pay, recordkeeping, and youth employment standards that affect employees in the private sector andFederal, State and local governments (United States Department of Labor, 2014). * The wage for covered nonexempt workers is $ 7.25 per hours * Overtime pay to be at the rate of one-half times their regular pay after a 40 hour workweek. * There is no limit to anyone 16 years or older to the amount of hours they may work. * FLSA does not require Cost Club to pay overtime for weekends, holidays for an employees, regular days off, unless overtime is typically worked on those days. * Employers are required to display the official poster of the FLSA. (United States Department of Labor, 2014).


In order to ensure and maintain a high moral level of employee behavior. Employees of Cost Club must fully understand the ethical and legal implications of their decisions. As they relate to their employees personal and professional values. This should be reflected at every level upper, and lower management included. Cost Club needs to develop and implement a Business Code of Ethics that can be reviewed with all employees at all Cost Club locations. By implementing a Business Code of Ethics, Cost Club will weave together not only the legal principles of employment, but the moral issues that commonly arise in employment issues.

These ethical behaviors are vital to Cost Clubs overall success. The stakeholders of Cost Club are able to take direction from Cost Clubs, Business Code of Conduct. And when an ethical dilemma occurs the code will become one of the employee’s best tools for dealing with the dilemma. When Cost Club chooses to engage in employee monitoring, this practice will be posted and announced to all employees. Employees need to understand the laws and Cost Clubs corporations, policies along with the Business Code of Conduct.

Cost Club also needs to exercise restraint in looking over their employees shoulders when it comes to use of the internet and email. (Mujtaba, 2014). When everyone understands all the ground rules then the workplace environment at Cost Club will be fair. If Cost Clubs employees are being ethical and following the policies he or she should not be concerned with monitoring and at the same time Cost Club should conduct their monitoring of employees within the guidelines of the law (Mujtaba, 2014).


FindLaw. (2014). Employee rights 101. Retrieved April 13, 2014, from Mujtaba, B. G. (2014). Ethical implications of employee monitoring: What leaders should consider. Retrieved April 13, 2014, from National Labor Relations Board. (2014). Employer/union rights and obligations. Retrieved April 13, 2014, from United States Department of Labor. (2014). Employee retirement income security act ERISA. Retrieved April 13, 2014, from United Stated Department of Labor. (2014). Employer rights and responsibilities following an OSHA inspection. Retrieved April 13, 2014, from United States Department of Labor. (2014). Wage and hour division. Retrieved April 13, 2014, from

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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 26 September 2016

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