Chapter 22 Employment Law 4/20/2017 Chapter 22 Employment Law Catherine Waggenseller began working at Scottsdale Memorial Hospital and was promoted several times during the course of her employment. Her evaluations were good, and it appeared as if she was well liked and got along with everyone. She was invited on an 8‐day rafting and camping trip with coworkers which she accepted. During the trip, her co‐workers acted in what she considered to be an obnoxious fashion, and she refused to participate. When the trip was over and she returned to work, the attitude of her co‐workers, including her supervisor, became hostile, and she claims they began embarrassing her and became abusive. Other staff noticed a change also. Her supervisor then terminated Waggenseller. Waggenseller sued the hospital for unjust dismissal. Does Waggenseller have any chance of winning? Explain. Chapter 22 LAW

Yes, even though Waggenseller is an at‐will employee, she may not be terminated for bad cause. Waggenseller was essentially terminated for her refusal to commit an act that might violate the law and that the court refused to uphold such a termination. Chapter 22

22-1 Making and Terminating Employment Contracts Employment A contractual relationship in which one party engages another to work for pay under the supervision of the party paying. Employer A party who engages another to work for pay. Employee A party who works under the supervision of another for pay. Independent contractor One who contracts to do something for another but is free of the latter’s direction and control. Employment at will An employment relationship whereby the employee may be discharged at any time because no agreement was made about length of employment; alternately, the employee may quit the job at any time without liability for breach of contract. Wrongful discharge When an employer terminates an employee without cause. 7. Discharged without cause The cause of an employee’s termination was not the employee’s conduct. Chapter 22

When does an employment contract exist? Unemployment compensation Money paid by government or private insurance funds to workers who have lost their jobs through no fault of their own. Discharged for cause An employee is terminated because he or she violated an employment obligation. When does an employment contract exist? An employment contract exists when the employer and the employee have an agreement in which the employer pays an employee to do work under the employer’s supervision and control. What are the four unlawful reasons for termination in which an employer commits a tort? When an employer fires an employee for: (1) refusal to commit perjury at the request of the company (2) insisting on filing a worker’s compensation claim (3) reporting violations of the law by the company, or (4) urging the company to comply with the law, the employer is committing the tort of wrongful discharge. Chapter 22

HOW ARE EMPLOYMENT CONTRACTS MADE? Terms of the employment contract Express agreements-oral or written documents Written are used with sports professionals, entertainers, top-level manager, and union members (a party who violates an express term is liable for breach of contract) Most express contracts are partly written and partly oral Compensation Fringe benefits Duration of job Implied agreements-hiring of hourly workers Come under doctrine of employment at will Terms imposed by law- State or Federal laws Minimum wage Discrimination Chapter 22

HOW ARE EMPLOYMENT CONTRACTS TERMINATED? By performance- By termination at will- Wrongful discharge Violation of contract terms Government employees-must be given notice along with a hearing ( more difficult to discharge public employees) By material breach Unemployment compensation Chapter 22

22-2 Duties of Employers and Employees PAYROLL DEDUCTIONS Money deducted from an employee’s paycheck. WORKERS’ COMPENSATION A payment to an insurance fund that compensates employees for injuries on the job. DUTY OF OBEDIENCE An employee’s duty to obey the reasonable orders and rules of the employer. DUTY OF REASONABLE SKILL An employee’s duty to possess the skill, experience, or knowledge necessary to do the work accepted. DUTY OF LOYALTY AND HONESTY An employee’s duty to look out for the employer’s best interest. DUTY OF REASONABLE PERFORMANCE An employee’s duty to perform assigned duties at the prescribed time and in the prescribed manner. Chapter 22

WHAT ARE AN EMPLOYER’S DUTIES? Duties owed to employees Reasonable treatment Safe working conditions Fair labor standards Payroll deductions Military service Voting Family and medical leaves Continued on the next slide Chapter 22

Describe the duties of an employer. (1) The duty to treat employees in a reasonable manner. (2) An employer must provide his or her employees with a safe working environment, including safe tools, equipment, machinery, and the building itself. (3) All employers under the jurisdiction of the Fair Labor Standards Act must not demand more than 40 hours of regular rate pay per week. If more than 40 hours are worked in one week, overtime must be paid at a rate of one and a half times the employee’s regular hourly rate. (4) Payroll deductions paid to the government by the employer to cover federal and state income tax obligations, social security, and insurance. (5) The Military Selective Service Act of 1950 requires employers to re-employ workers after an honorable discharge from military service. All persons who have been drafted, enlisted, or called to active duty from the reserves will receive this protection. (6) More than one-half of the states require that workers be given time off with pay at a time convenient to the employer to vote in regular, primary, and general elections. Chapter 22

WHAT ARE AN EMPLOYER’S DUTIES? Duties owed to minors State laws Federal law Duties owed to those injured by employees Chapter 22

(2) Certain work is harmful or dangerous for young people. Explain the special duties owed to minors. What principles are these duties based on? Both state and federal governments have special regulations protecting minors who work from working overextended hours and in dangerous working conditions. Although federal and state laws vary they are all based on the following principles: (1) A person’s early years are best used to obtain an education. (2) Certain work is harmful or dangerous for young people. (3) Child labor at low wages takes jobs from adults. In addition some states have child labor laws that: (1) set the maximum number of working hours in one day that a minor can work, (2) prohibit night work, (3) decide what grade a child must have completed in school prior to being able to work (4) set the required age for certain hazardous occupations, and (5) restrict the hours of work to between 5 in the morning and 10 in the evening. Chapter 22

In general, when is the employer liable for injury caused by employees? An employer is liable if an employee, acting within the scope of employment, commits a tort, whether the employer specifically authorized the act or not. Chapter 22

WHAT ARE AN EMPLOYEE’S DUTIES? Duty to fulfill the employment contract Duty of obedience Duty of reasonable skill Duty of loyalty and honesty Duty of reasonable performance Chapter 22

Explain the duties of an employee. The duties of an employee towards his or her employer are: a duty to fulfill the express terms of the employment contract and other implied agreements made with the employer a duty to obey the reasonable orders and rules of the employer whether or not the employee has expressly agreed to do so the duty to possess the skill, experience, or knowledge to do the work the duty to look out for the employer’s best interest the duty to perform the job tasks assigned to him or her with competence. Chapter 22

PREVENT LEGAL DIFFICULTIES As an employee . . . Realize that you and your employer are parties to a contract in which you both have rights and duties. Before you go to work, learn as much as you can about the job. Find out about hours, pay, duties, dress, fringe benefits, and any other related matters. Avoid tardiness and absenteeism. Continued on the next slide Chapter 22

PREVENT LEGAL DIFFICULTIES Remember that in addition to reasonable skill and performance, you owe your employer loyalty, honesty, and obedience. However, the duty of obedience does not require employees to engage in illegal, immoral, or unsafe activities. Remember that you are personally responsible for your own negligent acts. This is true even though the injured party may also be able to recover from your employer. Continued on the next slide Chapter 22

PREVENT LEGAL DIFFICULTIES As an employer . . . Remember to treat your employees reasonably and provide them with safe working conditions. Be aware of and comply with applicable federal and state laws governing the work environment. Prevent vicarious liability for the potentially tortious acts of your employees by training them properly, especially if they have immediate contact with the general public. Chapter 22