Ch. 15 Employment Laws 15-1 Employment Agreements

Question How many of you work? How many of you have been fired? Why?

Employment-at-Will An employer or employee can end an employment relationship: At any time For any reason For no reason With notice Without notice How would an employer or employee end their employment relationship?

Other Types of Employment Contracts Unionized Employees Individualized Employees Protected Classes

Exceptions to Employment-at-Will Promissory Estoppel - bars employers from taking back certain promises. Implied Contracts - employer led you to believe that you were not E-A-W. Public Policy Tort - firing the employee hurts the public at large. Implied Covenant - employers and employees will be fair and honest.

Promissory Estoppel 4 elements to prove: 1.Employer made a promise the employee relied upon 2.Employee actually relied upon the promise 3.Employee wouldn’t have acted a certain way if it weren’t for the promise 4.Employee was harmed by the employer not living up to their promise.

Example: Promissory Estoppel Jason had an interview with a potential employer in California. The employer promised him that he would have a paid position for a trial period of 6 months if he would move to California. He relied on the promise for a guaranteed 6 month position if he moved. He quit his old job and moved to California. The second day there he was fired for no reason at all.

Implied Contract Handbooks say otherwise Fired employee must be the one to prove they were wrongly fired.

Example of Public Policy ovosel v. Nationwide Insurance Co., 721 F.2d 894 (3d Cir. 1983), a federal appeals court made a public policy exception for an employee who was dismissed for refusing to join a company's Lobbying effort because he privately opposed the company's stance on the issue.

Example of Implied Covenant In Khanna v. Microdata Corp., 170 Cal. App. 3d 250, 215 Cal. Rptr. 860 (1985), for example, a California court of appeals ruled that a company violated an implied covenant when it fired a leading salesman who had brought suit against the company for unpaid commissions. The court found that a breach of an implied-in-law covenant is established whenever an employer engages in a bad-faith action outside a contract and attempts to frustrate an employee's enjoyment of her or his contract rights.

Unionized Employees Collective Bargaining (way unions negotiate their contracts. What things do you think they will try to negotiate with the management?

Norris-LaGuardia Act (1932) 1st federal law to support unions. Outlaw yellow dog contracts (forcing employees to not join a union) Prevent federal courts from preventing labor strikes.

Wagner Act (1935) Employers must negotiate wages, hours, and conditions. Created National Labor Relations Board They hear complaints about unfair labor practices.

Taft-Hartley Act (1947) Unions must give 60 days notice of a strike. Prohibits strikes if they endanger the public. President can get court to stop a strike for 80 days.

Landrum-Griffin Act (1959) Stopping corruption in unions. Makes unions have constitutions and bylaws registered with Sec. of Labor. Must submit yearly financial reports.

Forming and Dissolving a Union Contact a national union Solicit employees (30%)to organize a vote Secret ballot, majority must approve.

Ch Employee Rights

What type of rights do you have as an employee? -health and safety protection -Fair wages and benefits -Privacy -Equal opportunity

Health and Safety Acts Occupational Safety and Health Administration (OSHA) Inspect workplace Investigate employee complaints, deaths, disasters Protects employees from being fired for filing complaints Issues fines for rule violations

Health and Safety Acts Environmental Policy Act Established EPA Sets up national policy for fighting pollution. Encourages voluntary compliance from companies.

Fair Wages and Benefits Acts Fair Labor Standards Act Minimum wage Time and a half for 40+ hours Regulates employment of minors Covers employees who produce goods for interstate commerce

Wages and Benefits Acts Equal Pay Act Equal Pay Rule - employers in interstate commerce MUST pay women the same rate as men in the same job.

Wages and Benefits Acts Employment Retirement Income Security Act (ERISA) Prevents abuse of employee pension plans Pension Plans - program for retirees. Requires employers to put employee pension contributions into an outside trust fund

Wages and Benefits Acts Family and Medical Leave Act Company with 50+ employees guarantees employees 12 weeks unpaid leave to care for a newborn child or a sick relative. Employee can return to same job or equivalent with same pay and benefits.

Wages and Benefits Acts Social Security Act Program that pays employees (family) when their earnings stop. Why would earnings stop? Retirement, disability, death Employees and employers both contribute.

Wages and Benefits Act Unemployment Compensation Payments to people who are out of work and looking for a job. Employers pay payroll taxes to the program Can be disqualified if: Refuse to accept a suitable job. Unemployment due to Labor strike Fired for misconduct Voluntarily quit without good cause

Wages and Benefits Acts Workers’ Compensation Provides income for workers who were injured/disabled/diseased on the job.

Employee Privacy Rights 3 areas of Privacy law: Guarantee privacy for governmental employees Testing employees for Drug use Using polygraph tests for hiring and firing employees.

Employee Privacy Rights Federal Privacy Act Protects governmental employees NOT private sector. Know what is in their employee files Restrict access to their files Fix any mistakes in their files

Employee Privacy Rights The Drug-Free Workplace Act Companies that have contracts with Federal Government creates drug free workplace. Drug test not required

Employee Privacy Rights Employee Polygraph Protection Act Employers can not use lie detector tests to screen employees Prohibits random testing of employees. Exceptions: Not to businesses involved in security/handling of controlled substances. Drug firms and private investigation companies.

Equal Employment Opportunity Six acts that ensure: fairness ethical behavior Prevent discrimination Discrimination - unequal treatment of individuals based on sex, age, race, nationality, or religion.

Equal Employment Opportunity Civil Rights Act (1964) Title VII Prohibits discrimination based on race, creed, color, national origin Affirmative Action - recruiting employees based on those characteristics. If you feel discriminated upon file complaint with EEOC (Equal Employment Opportunity Commission)

Civil Rights Act (cont.) Disparate Treatment - employer intentionally discriminates against protected class. Example: Hiring only female nurses Disparate Impact - employer has a policy that seems neutral but is unfair to members of the protected class Example: hire people over 6 feet tall

Disparate Treatment Defenses Bona fide occupational qualification A job requirement that might seem discriminatory but is actually done in good faith Model for female clothing should be a female!

Disparate Impact Defenses Business necessity Job requirement based on actual skills needed by an employee to perform a specific job. Ex: surgeons have medical degrees.

Equal Employment Opportunity Civil Rights Act of 1991 Strengthen doctrine of disparate impact. Employers must prove business necessity Plaintiffs can recover back pay as well as compensatory and punitive damages.

Equal Employment Opportunity The Pregnancy Discrimination Act You can not discriminate against a woman because she is pregnant of gave birth

Equal Employment Opportunity The Immigration Reform Act Employers must verify identity and employment eligibility of all employees Must provide original documents Must sign a verification form

Equal Employment Opportunity The Age Discrimination in Employment Act Applies only to: employment agencies Employers with 20 + employees Labor unions with 25 + members Forbids discriminating against people 40 + Unless it is a job qualification (model children’s clothes)

Equal Employment Opportunity Americans with Disabilities Act Forbids discrimination on basis of a disability As long as the individual can do essential job function

Equal Employment Opportunity Sexual Harassment 2 types: 1. Quid pro quo - one worker demands sexual favors from another in exchange for something employment related (raise) 2. Hostile work environment - made the workplace distressing, humiliating, hostile (sexual jokes, photos)

International Employment Law Do the United States employment laws remain?