Employment Law Chapter 21

Employment – legal relationship based on a contract that calls for one individual to be paid for working under another’s direction Independent contractor – one working for, but not under one’s supervision

Express Agreements  Oral or written employment contracts  Expressly describes all elements of the employment relationship Ex. Sports professionals, entertainers, management, union members, etc.

Implied Agreements  Hourly wage workers  No agreement as to length of employment Employment at will – employee can be discharged or quit at any time for any cause due to lack of formal contractual agreement

State and Federal Law  Minimum wage requirements  $7.25/hr  $2.83/hr for tipped employees  Discrimination laws  Child Labor Laws

Termination By Performance  Completion of job By Will  Wrongful discharge  Violation of contract terms  Government employee (difficult) By Material Breach  Obligations are not fulfilled (by either employee or employer)

Unemployment Compensation Unemployment Compensation  Money paid by the government or a private insurance fund to workers who have lost their jobs through no fault of their own

 Employees that are said to have been discharged without cause are entitled to unemployment compensation benefits  Employees discharged for cause are not!

Employer/Employee Responsibilities Chapter 21-2

…Owed to Employees 1.Reasonable treatment 2.Safe working conditions 3.Fair labor standards  Minimum wage  Maximum hours  Overtime compensation

 Maximum hours = 40hrs per week  Overtime = 1 ½ x hourly rate  Executives, professionals, etc. are an exception to this rule due to being paid by salary

…Owed to Employees 4. Payroll deductions  Employer matches S.S. and Medicare  Employer pays into Worker’s Compensation and unemployment 5. Military service – jobs held for drafted/enlisted military persons

…Owed to Minors 1.State Law  Minimum age (work permit)  Maximum/restrict working hours 2. Federal Law  Fair Labor Standards Act

 Entertainment and agriculture are the only two fields that may employ minors under the age of 14, minimum wage often does not apply

…Owed to injured parties  If an employee, acting within the scope of employment, commits a tort, the EMPLOYER is liable for damages

…Owed to Employers 1.Duty to Fulfill employment contract 2.Duty of obedience – obey reasonable orders and rules of employer 3.Duty of reasonable skill – those who accept work possess the skill, experience and knowledge to do it

…Owed to Employers 4. Duty of loyalty and honesty – to look out for employers best interest 5. Duty of reasonable performance – perform job tasks with competence  Occasional minor failure to perform is not sufficient grounds for dismissal