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EMPLOYMENT LAW REPORT 8 Employment Law Report Lourde Owens HRM/531 Mar. 16, 2017
Richards Sims Employment Law Report The employment law governs the legal relationship between employer and employee. These laws aim at protecting workers’ rights by promoting health and safety, providing social security and protecting workers from discrimination. Labor laws are based on federal and state constitution law. There are two categories of labor law: individual labor law that covers the employees’ rights in workplaces and collective labor law that covers union, employer, and employee relationships.
Good overview note edit—pay attention to details. Human capital is a combination of an individual's attributes, experiences, skills, and knowledge that enables one to perform labor for the production of economic value. It is sometimes referred to as intellectual capital as it reflects the creativity, skills, and knowledge that individuals contribute to organizational success. Human capital being an asset in any business or organization requires being protected by laws. The laws which are related to human resource employment laws are enforced by the Department of Labor (DOL).
The Toyota group organization is one of the world's leading automobile manufacturers with its headquarters in Japan. Toyota's organizational structure provides a degree of flexibility that empowers it to respond to issues and promote quality production. Among the eight regional divisions is North America, which has over ten thousand employees and, like all organizations in America, it operates under federal laws and regulations and is well aware of employment laws. Reference to the source of this information is necessary for verification.
Human Capital Management (HCM) refers to the process of upgrading the prevailing skills of an employee through training and extracting the best out of him or her to contribute to the organization's growth. HCM plays a role in attracting, developing, and rewarding an organization’s greatest asset. The initial step for effective human capital management is to recognize employees as the most valuable asset and biggest investment in the organization (Sadiq, 2017).
Human capital management in Toyota is based on certain applications that include core administrative support such as personnel administration, payroll, and service centers. The organization's HRM is responsible for all aspects of developing and rewarding employees and promoting innovation to encourage a high-performing platform where all workers can thrive. It also provides educational training to boost the
professional growth and performance of its workers. Technology has played a key role in making HRM simpler as it has automated onboarding procedures, allowing employers to create, organize, and monitor new hire training or tasks. Employers can now manage human capital by creating employee profiles that provide access to important employee information and foster sociability among employees. Embracing new technology, including mobile applications, enhances communication and creates a flexible work environment.
Regarding Toyota’s philosophy, it views its human capital as its most vital resource, emphasizing continuous improvement (Kaizen), respect for people, and employee involvement. The company’s philosophy reflects a commitment to fostering a culture of innovation and high performance, viewing employees not just as labor but as contributors to the company's success and growth.
There are over 180 federal laws protecting workers, which organizations are required to enforce. The Occupational Safety and Health (OSHA) Act mandates employers to provide workplaces free from hazards that may cause harm to health and well-being. Enforcement includes workplace inspections, audits, and investigations by internal and external experts. Violations can result in monetary fines, corrective measures, or, in rare cases, jail sentences (Lopez, 2016).
The workers' compensation law mandates that employers provide insurance coverage in the form of cash benefits or medical care for workers injured or ill due to work. Compensation is contingent upon the agreement that the injury or illness is work-related; penalties for non-compliance may include fines as high as $50,000 depending on the circumstances.
The Fair Labor Standards Act (FLSA) protects employees against underpayment and overwork. Wage and hour violations are detected through investigations involving data collection and analysis. Non-compliance can lead to fines or imprisonment. Implementing a strong compliance and ethics program is essential to monitor and enforce legal obligations, promote organizational integrity, and prevent misconduct (Abdullah, Indulska, & Sadiq, 2016).
A typical compliance program includes a code of conduct outlining expected behaviors, assigning responsibilities, and establishing procedures for reporting misconduct. Management should provide training on policies and conduct regular audits to ensure adherence. Cultivating a "culture of compliance" benefits organizations by reinforcing ethical standards, rewarding positive behavior, and fostering transparency. Background screenings and monitoring are critical in preventing illegal activities among
managers and staff. Remedial actions should follow audit findings, and risk assessments should be regularly conducted to evaluate and improve compliance efforts.
Applying these principles to Toyota involves integrating their corporate philosophy with legal compliance strategies. Toyota emphasizes respect for people and continuous improvement, which aligns with implementing ethical practices in HR and compliance programs. Their commitment to worker safety, fair wages, and continuous training exemplifies the integration of employment laws into organizational culture, ensuring legal adherence while fostering employee well-being and organizational excellence.
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