1. Creation of employment contrACts
Chapter 27- Lesson 1

2. What will you learn? What is employment defined as?
What parties are involved in employment agreements?
What is the difference between an express and an implied agreement?
How does the law effect employment agreements?
What duties do employees have towards their employers?

3. Take out Notebooks and answer this..
Name any paying job that “you” have had (Or someone you know has) and list responsibilities that came with the position in your notebook

4. What did you write down?
Add in anything someone else said in their responses to your notes…

5. Basis of these responsibilities…
Length of employment
Duties and responsibilities
Wages
Benefits
Scheduling
Hours
Retirement packages
Vacations
Ability to compete with business if you chose to leave
Trade secrets
Customer service
Anything else??

6. What is employment?
Employment is defined as “A legal relationship based on a contract”
Parties involved are the employee (party who does work in exchange for an agreement to be supervised and controlled) and the employer (Party who pays for the work)

7. What does it mean to be supervised and controlled?
An agreement to be supervised means you agree to complete work within your job description that is “reasonable”
Reasonable means you have the ability to complete the work and training needed (If needed)
Controlled means you follow supervisors orders as long as they are reasonable

8. Can someone work for you and not be considered an employee?
YES!
Independent Contractors
You hire them, tell them what you want completed but you do NOT supervise them
Contract is based on completion of what you want done, without supervision

9. Why contract with independent contractor rather than hire them?
Liability issues
Liability is a legal term that means responsibility and they can be sued in court
If an independent contractor damages your property or someone else's during their work, THEY are responsible for the damages, NOT you…

10. Where terms of employment contracts come from….
Express agreements between the employer and employee
Implied Agreements between the employer and employee
Specific state and federal laws

11. Intro video

12. What are express agreements?
Express agreements are detailed written or verbal agreements
They describe all elements of the employment relationship (hours, pay, benefits, job responsibilities, etc)
They SPECIFY the exact length of time the employment will take place
Most are partly written and part spoken

13. List some benefits and detriments of an express agreement in your notes
Stuck in contract for a time limit (If something better comes up, contract must be broken)
Pay rates are set for time
Negotiate before contract starts, not during or after many times
Guaranteed a time for employment
Guaranteed “pay” level that is contractually agreed to
Guaranteed benefits
Protections based on contract
Right to court arbitration

14. What are Implied agreements?
Implied agreements are agreements that are “open ended” as to the time a person will have a job (No end time for employment)
Also known as “At will” employment
A person can quit a job any time they want or be fired at any time with “NO” reason given for their firing

15. List some benefits and detriments of an Implied agreement in your notes
No job security
Day to day
Hours are not guaranteed
Benefits are based on hours
Can be fired without being given a reason
You’re a “free agent” all the time (Great workers get paid well)
Hours and pay are based on day to day results
You can leave if something better comes up
You can renegotiate your pay all the time

16. How does the law effect contracts?
Sets guidelines for all agreements
Each state can be different
Examples include minimum wages rules, overtime rules, health insurance and discrimination laws

17. Employee duties to employer
Duty of Obedience
Means the employee must obey or follow “Reasonable” orders or rules from their employer
Created by both express (Written contracts) or implied agreements

18. Employee duties to employer
Duty of Reasonable skill
Means the employee must possess the skill, experience or knowledge to do the work they said they could do
Ex) If you tell an employer at an interview you have experience with Microsoft Excel, but you never used it before, you could be fired for lack of skill

19. Employee duties to employer
Duty of Reasonable Performance
Means the employee must complete assigned work on time and in the manner expected by the employer
Ex) If you are given a week to create a TV advertisement and it takes you 2 weeks, plus you decide to create a website advertisement, you can be discharged for not being on time or following directions

20. Ticket out the door quiz
Complete the practice quiz and turn in before end of class
Review and quiz within next 3 classes