Union Rules Intrude Upon the Nonunion Domain: Workplace Investigations and the NLRB

This paper examines the new legal landscape for nonunion employers who contemplate conducting investigations of alleged wrongdoing by their employees. The National Labor Relations Board (NLRB) has ruled that a certain right (the Weingarten right) previously guaranteed only to union members applies equally to at-will employees in nonunionized firms. As a result, all employees now possess the right to ask that a coworker be present during an investigatory interview. While the Weingarten right is sensible in a union environment, significant public policy and practical problems arise when this right is extended to the nonunion environment. This paper offers advice on managing the investigative process, given this new right, and it discusses the propriety of imposing union rules on the nonunion workplace.     

Spark ignition hazards caused by charge induction

Unexpected ignition hazards, caused by static charges on nonconductors, warrant greater attention in industrial plants and laboratories.     

The Paramour’s Advantage: Sexual Favoritism and Permissibly Unfair Discrimination

Despite the prevalence of sexual favoritism in the workplace, there is much debate over whether this phenomenon rises to the level of prohibited discrimination and harassment. While the United States Supreme Court has not yet involved itself in adjudicating issues of sexual favoritism, the Equal Employment Opportunity Commission, however, has issued guidelines. The California Supreme Court recently addressed the “sexual favoritism as sexual harassment/discrimination” issue and, absent better guidance from the federal courts, the California decision provides interesting insights for the legal and business communities. This article explores key issues involving workplace romances, sexual favoritism, and Title VII’s prohibition of sexual harassment as an illegal form of discrimination based on sex. We use the recent California Supreme Court decision in Miller to illustrate the legal and managerial challenges facing policy makers and management practitioners. We conclude with a discussion of policy alternatives for creating a discrimination- and harassment-free workplace while effectively managing workplace romances and instances of sexual favoritism.

Asymmetry in earnings timeliness and persistence: a simultaneous equations approach

This study addresses simultaneity bias in piecewise linear forms of the earnings-return relation. We specify an overidentified system of simultaneous equations that incorporates both asymmetric earnings timeliness and asymmetric earnings persistence specifications and implement two-stage least squares for this piecewise linear system. Estimation of a system that is piecewise linear in endogenous variables presents several issues that are unprecedented in the accounting literature. Findings provide evidence that the asymmetric timeliness specification is particularly affected by simultaneity and that failing to correct for simultaneity results in coefficient estimates that potentially understate the degree of asymmetric earnings timeliness. Moreover, inferences regarding how conditional conservatism has evolved over time are sensitive to whether OLS or 2SLS coefficients are used as the basis of comparison.     

State Minimum Wage Differences: Economic Factors or Political Inclinations?

This paper examines the importance of factors that influence a state's decision to adopt an above-federal minimum wage level. Our results indicate that state political leanings are the primary factor explaining differences in state minimum wage laws since 1991. Further, state cost of living differences do not appear to influence a state's decision to increase its minimum wage above the federal level. This result is interesting since proponents of raising the minimum wage cite the rising cost of living as a principal justification for an increase. Our findings should be of special interest to economists responsible for analyzing and forecasting labor cost trends within and among states where their employers operate or plan to relocate.     

The determinants of excessive indebtedness of the rural poor

Conclusion The foregoing analysis helps to explain how the poverty cycle deepens and becomes increasingly intolerable for the rural poor. The authors acknowledge the assistance of Les Pinter and Riad Chehlaoui, graduate students, Rice University and the University of Houston, respectively, for some statistical work.     

Broadening the Definition of Unlawful Retaliation Under Title VII

Title VII retaliation cases have become a larger part of the Equal Employment Opportunity Commission (EEOC) caseload, and this development should be a growing concern for business. By addressing the question of exactly when a prohibited retaliatory action has been taken against an employee, the United States Supreme Court’s June 2006 decision in Burlington Northern & Santa Fe Railway Co. v. Sheila White ended a significant disagreement among the various appellate courts on the issue. The Supreme Court answered two specific questions regarding retaliation for raising a claim of sexual discrimination. First, the Court decided that the retaliatory conduct need not take place within the employment setting; and, second, it held that a materially adverse action requires only that a reasonable employee would be deterred from making, filing, or supporting a claim of workplace discrimination to the EEOC, the courts, or the employer. Employers need to revise and update their internal policies and procedures to ensure that their firms comply with these new standards.