Guide to Banking Labor Laws

The pillars of banking institutions are mostly used as measures of economic stability and growth of most countries. A productive banking sector usually translates to a growing economy and better living conditions. The banking sector helps people in need who have intentions in making their livelihood grow through bank loans/programs. In line with their progress, banking institutions imposed banking laws not only for them but for the use and understanding of all. Laws were implemented as a guide or tool for each and everyone to use and at the same time is very relevant nowadays.

The book Modern Banking Law by Ellinger puts the banking laws in the context of general legal doctrines entwined with banking regulations. The operations are discussed based on the wider economic spectrum with the functionality played by banking and financial institutions. This book also takes into account various types of banking organizations as well as explaining the relevancy of the different account types for customers.

Readers will learn more about overdrafts, credit agreements and bank loans as well as bank liabilities and current processes used in clearing cheques. Recent developments in electronic banking and payment services including money laundering issues are tackled in the later chapters.

The Seventh Edition of the Quick Reference Guide to Banking Regulations provides a clear path to conformity with a concise, single page, easy to read briefing on major banking regulations and laws. This can be appreciated by anyone who is involved in the banking industry whether as a bank director, consultant, attorney or any other related position.

Every regulatory and legal change that has been implemented since June 2005 with the inclusion of the Check 21 law and the Community Reinvestment Act are included. This guide outlines the history, requirements and goals of every law and presents a cross-referenced table of contents that allows searching by statute or regulation.

by Andrea

Banks and bank accounts are regulated  both by the state and federal statutory law. Bank accounts may be established by national and state chartered banks and savings associations. These are all regulated by the law under which they were established. Until the early 1980’s interest rates on bank accounts were regulated and controlled by the national government. A ceiling existed on interest rates for savings accounts. Interest payments on demand deposit accounts were generally prohibited. Banks were also prohibited from offering money market accounts. The Depository Institutions Deregulation Act of 1980 (DIDRA) eliminated the interest rate controls on savings accounts.

An expensive and contentious issue that concerns the mortgage banking industry is overtime pay. Deciding who gets it and who doesn’t will be a major bone of contention. Mortgage bankers and lending officers have been working staggering hours to answer the demands of home owners to either refinance their loans or purchase starter packages. This has translated to long working hours and an increase in payment of annual compensations.

However, antiquated labor laws open up most of these companies to class action law suits because many lawyers are looking for opportunities to sue companies for miscategorizing workers and unfairly depriving them of their overtime pay.

It’s a sad fact that many companies are dismissing their employees without any proper reason for doing so - which saves them from paying these employees out. Many of the dismissed employees are clueless as to what the banking labor law is and what their rights are, so here are the only reasons your company can dismiss you:

- when you willfully disobey any lawful orders of your boss or employer
- serious misconduct
- serious neglect of your assigned duties
- fraud and violation of the trust your employer has placed in you.
- any crime committed by the employee or any of your relatives against your boss or employer.

Unless you are guilty of any of these offenses, you have the right to question your dismissal from the company. You can even pursue your case under a court of law, and seek damages or compensation for your unfair dismissal.

Layoffs have become so common that no industry is immune to the overall effect the economic recession is having on all fronts. Even in the illustrious world of advertising, you may get laid off your job due to slowing demand for services and products. The government has many services and resources fro laid off workers and even promote counseling which would allow you to transition from a long life in the workforce to the jobless ranks. Rapid Services have been introduced to minimize the effects of the economy on the common worker to help them understand the full range of benefits they may have at their disposal the government is offering. Mass layoffs due to closure of plants fall under the WARN act which encompasses layoffs of more than 50 workers at a single instance. You as the employee and your employer have specific roles to make the process legal, non-compliance can result in prosecution by the courts for unfair labor activity.

Though discouraged, every employer wants to see the background of prospective employees for the mere fact of security. It isn’t illegal but there is a very thin line as to how much an employer can dig, too much and it goes over the fence. Labor organizations encourage reporting of such crimes so the respective offices can be notified and necessary actions taken.
Equal opportunities acts all over the world states that everybody must have equal rights to employment irregardless of religion, sexual orientation and many other social differences. But most cases of such discrimination go unnoticed and it is only till somebody steps up to the plate that it gets noticed. Any unfairness by management should be consulted with proper government agencies and labor organizations so it can be corrected and checked.

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Every state in the United States have different wage laws. In California, the current law sets a higher minimum wage rate than waht the federal law requires. And because of this, California has a dual coverage. It simply means that the state is subject to the federal and state’s minimum wage requirement. In the case of conflict, a stricter standard that will benefit the employee most will be followed.

Minimum wage law Exemption

There are employees who are exempted from the California minimum wage law. It covers outside salespersons. They pertain to individuals who are the parent, spouse, or child of the employer and apprentices. There is also an exemption for learners. They are to be paid not less than 85% of the minimum wage during their first 160 hours in some type of occupation. The physically and mentally disabled are also included in the exemption. In connection with that, non profit organizations like for example, a rehabilitation center which employs disabled workers are included in the exemption. They must be issued with special licenses which authorizes employment at a wage less than the legal minimum wage.

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The first bank to be robbed in the United States was the Bank of Pennsylvania in 1798. It was reported that the total stolen amount reached about $162,000. That would be roughly $1.9M to this day.

The robbery was believed to be an inside job because there was no clear sign of any forcible entry. Vaults back then were secured using locks. The blacksmith that changed the lock was Pat Lyon, who left Pennsylvania to escape from the yellow fever epidemic that swept Philadelphia at that time. Lyon suspected that a carpenter was responsible, and went back to to clear his name. But the authorities didn’t believe him and threw him in prison.

The real perpetrator turned out to be someone who had visited Lyon’s shop earlier, named Isaac Davis. He and the bank porter pulled off the heist. What was so stupid of them to do was, to deposit the stolen money into the same bank where they got it from. When confronted by police, Davis confessed to the crime. He surrendered all of it. But even after that confession, the authorities refused to release Lyon. Later, charges against him were fianlly dismissed. Lyon sued the bank and the officials. He got $12,000 as damage fees, for false imprisonment.