Chapter 23 Employment Contracts and Minors and Employment Business Law Chapter 23 Employment Contracts and Minors and Employment

Employment Contracts and Minors and Employment The Employment Relationship May be Formal or Informal All are covered by Federal and State Statutes

Labor-Management Relations Formal Agreements with a Union Collective Bargaining Agreement Grievance Procedure Layoffs, Seniority and even Hiring Practices. Rate of Pay and Benefits

Professional Employment Contracts Professionals Negotiate Their Own Contracts Executives Doctors Lawyers

Rights and Duties of Employers and Employees Some are implied by law Most are by Federal or State Statute Expectations Follow rules Do tasks as instructed Pay employees and taxes on time Treat each other fairly

Terminations Employment-at-will Relationship can be dissolved by either party at any time. Applies to most employment situations where there is no formal contract. Exceptions Unjust dismissal

Implied Contracts If an employer makes a promise that an employee relies upon, the employee can sue. Certain conditions must be met for there to be an implied contract where an employee can sue. See your text for details.

Disclaimers Covers companies in employment-at-will situations. Can be used to “reset” the employer/employee relationship back to an employment-at-will status. Regardless of promises or language in an employee handbook. Gives Employer an Upper Hand.

Implied Covenant The Covenant is a promise between employer and employee. Employee is honest Shows up on time Does their job Employer pays employee On time Meets other obligations

Restrictive Employment Covenants Employees agree not to work for a competitor for a specific period of time after leaving employer. Restrictions must be spelled out in writing. Usually involve trade secrets.

Legislation Affecting the Employment Relationship Federal Labor Laws Wagner Act Also called The National Labor Relations Act of 1935. Dealt primarily with collective bargaining issues.

Federal Labor Laws Taft-Hartley Act Also called the Labor-Movement Relations Act Limited Union Power

Taft-Harley Act Allowed states to pass “Right to Work” laws. These prohibited union-only sho ps Allowed the president to impose a 60-day cooling off period if a strike posed a threat to the nation’s health or safety. Required unions to give notice of intent to strike. Required unions to engage in collective bargaining.

Landrum-Griffin Act Was an amendment to the Wagner Act. Passed in 1959 Unions had to register their by laws with the Secretary of Labor Unions were required to provide full financial disclosure. Union member’s “Bill of Rights”.

Child Labor Laws Originally these were State Laws. Massachusetts and Connecticut were the first two states. By 1934 44 states had laws on the books limiting child labor.

Federal Child Labor Laws Passed in 1938 as part of the Fair Labor Standards Act of 1938. Updated in 1974. Prevented interstate commerce of goods produced by “Oppressive Child Labor” Prevented children from being employed in dangerous jobs.

Federal Child Labor Laws Limited children to jobs judged not to interference with school.

Exceptions To Child Labor Laws Children working in Agriculture after school hours. Child Actors. Children working for their parents. Children delivering newspapers.

Industry-Education Cooperation Many industries restrict the use of child labor. Schools are often the ones who monitor child labor. In most states the schools are in charge of issuing work permits.