Glossary of Employment Law Terms

Age Discrimination in Employment Act ("ADEA"). A federal law that protects older employees from employment discrimination on the basis of age.

Americans with Disabilities Act ("ADA"). A federal law that protects employees from discrimination on the basis of disability and imposes upon employers the requirement that they make "reasonable accommodations" for their employees' disabilities.

At-will employment. A type of employment relationship in which there is no contractual agreement and either party may end the employment relationship at any time, for any reason or for no reason at all, without incurring a penalty.

Back pay. A type of damages award in an employment lawsuit that represents the amount of money the employee would have earned if the employee was not fired or denied a promotion illegally.

Cafeteria plan. A type of employment benefits plan in which the employee selects benefits from a "menu" up to a specified dollar amount.

Consolidated Omnibus Budget Reconciliation Act ("COBRA"). A federal law that requires employers to allow employees to continue their health insurance coverage after termination, in the same insurance group, at the group rate, and providing the same benefits.

Comparable worth. A legal concept under which people who work similar jobs of similar worth to the employer must be paid the same regardless of gender.

Constructive discharge. A type of termination of the employment relationship in which the employee quits but the employer is liable as it would be for a wrongful termination because the employee was forced to resign due to intolerable working conditions.

Defamation. A statement made orally or in writing that impugns a person's character.

Employee assistance program ("EAP"). A workplace program provided by the employer to assist employees in recovering from drug or alcohol abuse, emotional problems, job stress, marital discord, or workplace conflict.

Employee stock ownership plan ("ESOP"). An employer-provided benefit that allows employees to purchase stock in the company under certain favorable terms.

Equal Employment Opportunity Commission ("EEOC"). The federal administrative agency that enforces laws prohibiting discrimination in employment.

Equal Pay Act A federal law that requires employers to pay the same to all employees who do the same work, regardless of gender.

Family Medical Leave Act ("FMLA"). The federal law that requires certain employers to give time off to employees to take care of their own or a family member's illness.

Front pay. A type of damages award in an employment lawsuit that represents the amount of money the employee would have earned if the employee was reinstated or hired into the higher-paying position from which he or she was rejected illegally.

Garnishment of wages. Taking or seizing the amount owing pursuant to a child support order or other order directly from the employee's wages.

Hostile working environment. A work environment that is so imbued with harassment or similar unwanted behavior that it interferes with the ability to do one's job and is said to violate anti-discrimination laws.

Individual retirement account ("IRA"). A tax-deferred savings account in which the employee contributes no more than a set maximum amount annually.

Implied contract. A type of enforceable contract that is not made explicitly but is implied from the circumstances or the parties' conduct.

Libel. Written defamation.

Minimum wage. The set minimum hourly rate that employers in certain industries are required by law to pay their employees.

Mitigation. Reduction, by the employee, of the amount of damages that will ultimately result from an unlawful employment practice, i.e., obtaining new employment after a wrongful termination.

National origin discrimination. Discrimination on the basis of ethnicity.

Noncompetition agreement. A contract or part of a contract in which an employee promises not to work for a competing employer or to set up a competing business during, or for a certain length of time after, the employment with the employer.

Occupational disease. An illness contracted by workplace conditions, such as "black lung disease" contracted by miners.

Occupational Safety & Health Administration ("OSHA"). The federal agency charged with creating and enforcing workplace health and safety standards.

Overtime compensation. A higher rate of pay (usually 1.5 or 2 times the regular hourly rate) the employer is obligated to pay employees who work more than a certain number of hours in a day or week.

Sexual harassment. Unwelcome sexual advances by an employer or supervisor to an employee that become a condition of the employee's employment.

Slander. Defamation that is oral.

Social Security. A federal program of retirement or disability payments created by taxing employees' income.

Stock options. A type of retirement plan in which employees have the opportunity to purchase stock in the company for which they work.

Telecommuting. Working from home or another location remote from the office, by using technology such as telephones and computers.

Title VII. Part of the federal Civil Rights Act of 1964 that prohibits discrimination in employment on the basis of age, color, national origin, race, religion, or sex.

Tuition reimbursement. An employee benefit in which the employer pays all or part of the employee's tuition for coursework or training.

Whistleblower. The term for an employee who "blows the whistle" on the employer, i.e., who reports to the authorities an employer's illegal action or practice.