Test Review Chapter 27

Difference between EmployeeContractor Someone who agrees to be supervised for pay Works under YOU, therefore represents the business Liability is on owner Someone who completes work under a non- employment based contract Works independently Liability is on the contractor

Employment Legal relationship based on a contract Employer is the person who pays for work Employee is person who completes the work assigned If either party does not do what they promise, the contract is breached

Breach of Contract When either side of an agreement does not follow what is agreed to If an employer agrees to pay you $100 for a days work and they only pay you $90, they breached the contract If an employee agrees to work 8 hours and they leave after 6 hours, they breached the contract

Employment agreements ImpliedExpress “At will” Open ended agreements with no agreed time limits Limited rights for employee BUT they can quit anytime a better offer comes “Contract based” Time limits part of all agreements Strong rights for employee (And employer) with clear expectations for each

At Will Employment Employee can quit anytime they want and employer can fire employee anytime they want No reason must be given by “either” party Protections for Employee: Pay, illegal discrimination, wrongful termination, retaliation not allowed, and state laws MUST be followed Protections for Employer: Obligations of employee, opportunity to better staff all the time, and can cut a person with no reason at any time

Contract based Employment Express contracts, usually part written and part spoken, that set clear obligation by employer and employee, time limit, pay and benefits Clear reason must be given “If” you are going to terminate an employee before contract ends Protections for Employee: Contract itself, reason for termination, time guaranteed for work being completed Protections for Employer: Contract itself, clear expectations, employee cannot quit, set time

Employee Duties Owed to Employer Obedience: Employee must obey “reasonable” orders by employer Reasonable Skill: Employees possess the necessary skills, experience and knowledge to complete the work assigned Loyalty and Honesty: Employee is obligated to look out for the employers best interest Reasonable Performance: Employees must complete assigned tasks within the time limit they are expected to be completed

Reasonable Orders Employees are obligated to complete tasks assigned to them that are reasonable. Sometimes reasonable order include asking employees to complete something outside what they are hired to do. “IF” they can do the job safely, it’s a reasonable request. If the request is NOT reasonable, they are justified to say no, and cannot be fired for this with cause (Insubordination).

Fair Labor Standards Act Federal Law that sets the minimum age minors can work (14) States are given the right to set their own minimum age (As long as they stay within federal guidelines) Ex) NYS allows you to work at 15 not 14 Minors may work in agriculture (Farming), entertainment or newspaper delivery under 14

Employers Duties Owed to Employee Reasonable Treatment: Employers must treat employees in a reasonable manner Safe Working Conditions: Employees must have reasonably safe working conditions, including tools, equipment and building itself (OSHA) Fair Labor Standards: Law must be followed Payroll Deductions: Taxes taken from checks Minors Rules: Follow state and federal guidelines

Wrongful Discharge Firing an employee for incorrect reasons Examples: race, religion, gender, age, handicap, pregnancy, veteran status, national origin Retaliation reasons that are illegal: Refusal to commit perjury (Lying under oath), filing a workers compensation claim, reporting a violation or asking company to follow the law

Fired for? CauseWithout Cause Not following employment obligations Obligations means what you are supposed to do Stealing, fighting, working under influence Not eligible for unemployment No reason for firing given (Obligations met) Usually given to an At will (Implied) employee Since obligations were met, you did nothing wrong Eligible for unemployment

Difference between Unemployment Workers Compensation An insurance paid by employer to allow workers fired without cause to be compensated while looking for work Must be independent and looking for work An insurance paid by employer to cover medical costs of an employee who is hurt on the job Must be independent and covers costs until the worker can go back to work

Sectors of Employment PrivatePublic Anyone who works in an area “NOT” within a government based job Can be express or At Will Less rights than a public employee Most of the country works within this sector Anyone who works in a government based job Police, public teachers, military, etc.. Strong rights as most have contracts Makes up a much lower part of workforce

2 Types Private Sector Employees Implied (At Will) No time limit stated Limited rights (Pay, working conditions, safety, etc..) Express (Contract) Time limit and rights based on contract agreed Right to court if dispute occurs (Must provide own attorney)

Public Employees Contract based agreements with time limits Represented if there is a dispute (Lawyer, union rep) Right to due process if fired (Court date, proof by employer must be shown, appeal if needed, rehired if proven false) Much harder to terminate Strong protections (Even stronger than private contracts in most cases)

FACTS Contractors are NOT employees (Liability reasons) Implied agreements do not have written contracts All employment agreements (Contractual or not) include the law as part of the agreement Employees can be discharged for ANY reason if they cannot do the work (Obligation) FICA means Social Security Fair Labor Standards act protects workers under 14 unless they work in exception areas State laws set minimum age for each state (Within federal)