28.1 Law for Business, 15e by Ashcroft Chapter 28: Employer and Employee Relations Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

28.2 Chapter 28 Objectives  Recognize how the relationship of employer and employee arises.  Identify the statutory modifications of an employer’s defenses under the common law.  Describe the liability of an employer to third parties for acts of employees.  Name the duties an employee owes the employer.

28.3 Employer/Employee Relationships  Contracts arise only from a contract of employment.  Parties seldom mention contract period; terms of compensation determine the contract period.  Terms other than compensation are determined by custom, law, and union contracts.

28.4 Duties and Liabilities of Employers  Duty to exercise care  Duty to provide reasonably safe place to work  Duty to provide safe tools  Duty to provide competent employees for the task  Duty to instruct employees as to any possible dangers

28.5 Common-Law Defenses of the Employer Contributory Negligence Rule The Fellow-Servant Rule Assumption-of-Risk Rule

28.6 Statutory Modification of Common Law Workers’ Compensation  Allows an employee or beneficiary to recover damages for injury or death.  Does not consider employee negligence a factor. Occupational Safety and Health Act  Applies to every business conducting interstate commerce except governments.

28.7 Employees’ Duties to Employers Job performance  Employees must perform their jobs faithfully and honestly to advance employer’s interests. Business confidentiality  Employees must not divulge any sensitive business matters. Granting of right to use inventions  Inventions belong to the employee who devised them, but the employer has the right to use the invention without charge.

28.8 Social Security Act Yes or no - can the following receive Social Security benefits?  People who are over 65 and retire from the workforce  Farmers and self-employed business people  Samuels, age 66, who hasn’t yet applied for benefits Activity

28.9 Social Security Act Yes or no - can the following receive Social Security benefits?  People who are over 65 and retire from the workforce - Yes  Farmers and self-employed business people - Yes  Samuels, age 66, who hasn’t yet applied for benefits - No Activity answers Activity answers

28.10 That’s All! Personnel