1. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 22 Employment Law 22-1 22-1Making and Terminating Employment Contracts 22-2 22-2Duties of Employers and Employees

2. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 2 22-1Making and Terminating Employment Contracts GOALS Describe how employment contracts are made Explain how employment contracts are terminated

3. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employment Employer - party who pays someone in order to direct and control that person’s activities Employee - party who is paid by the employer to serve under the employer’s direction Independent Contractor - someone paid to produce a specified resultin the manner he/she sees fit Chapter 22 SLIDE 3

4. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 4 HOW ARE EMPLOYMENT CONTRACTS MADE? Terms of the employment contract Express agreements - mostly part written, part oral agreement between employer and employee - written part expressly details of the employment relationship, including pay and specific duties Implied agreements - unwritten agreements about the terms of employment - ie: employment at will, if not in writing then either employer or employee can terminate employment at any time.

5. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 5 HOW ARE EMPLOYMENT CONTRACTS MADE? Terms of the employment contract, cont. Terms imposed by law - certain details must be included in employment by law - ie: minimum wage amount, maximum number of scheduled hours for minors, fair hiring process - clarification of book example: ‘hiring of racial and other minorities over other more qualified applicants’, p 404. Employers conducting business with the federal government sometimes have to follow certain minority guidelines.

6. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 6 CHECKPOINT Name three sources of the terms in employment contracts.     

7. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 7 HOW ARE EMPLOYMENT CONTRACTS TERMINATED? By performance By termination at will Wrongful discharge Violation of contract terms Government employees By material breach Unemployment compensation

8. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 8 Termination of Employment What are the three main ways in which an employment contract is terminated? Performance - completion of job, ie: construction - completion of performance, ie: contracted consultant submits report

9. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 9 Termination of Employment, cont. What are the three main ways in which an employment contract is terminated ?, cont. Termination at Will - when length of employment is not specified then either the employer or employee can terminate the work relationship at will Exceptions: (p. 405) 1. Wrongful Discharge 2. Violation of Contract terms 3. Government Employees

10. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 10 Termination of Employment, cont. What are the three main ways in which an employment contract is terminated?, cont. Material Breach - if one party to the contract fails to follow what is in the contract this is a material breach

11. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 11 22-2Duties of Employers and Employees GOALS List an employer’s duties Name an employee’s duties

12. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 12 WHAT ARE AN EMPLOYER’S DUTIES? Duties owed to employees Reasonable treatment Safe working conditions Follow fair labor standards - 1938 Fair Labor Standards Act (FLSA), federal - min. wage, 40 hrs/week, etc - not all workers covered, exceptions are administrators, professionals (ie: lawyers), executives Continued on the next slide

13. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 13 WHAT ARE AN EMPLOYER’S DUTIES?, cont. Duties owed to employees Payroll deductions - employers are legally obligated to withhold part of the employees paycheck to cover federal & state income taxes, social security (FICA) - employers also pay into the social security system, workers compensation, & unemployment Military service - Military Selective Service Act, Veteran’s Reemployment Rights Act, Uniformed Services Employment and Reemployment Act

14. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 14 WHAT ARE AN EMPLOYER’S DUTIES? Duties owed to employees Voting - time off to vote in primary or general elections Family and medical leaves - Family and Medical Leave Act, allows 12 weeks of unpaid, job-protected leave in a 12-month period. There are specific reasons listed on p 410, second column

15. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 15 WHAT ARE AN EMPLOYER’S DUTIES? Duties owed to minors State laws - child-labor laws - ie: minimum age, number of hours worked, time of day worked, safety from hazardous work Federal law - Fair Labor Standards Act (FLSA) - cannot work under 14 yrs. - specific guidelines for 14-15 yrs. and separate for 16+yrs.

16. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 16 WHAT ARE AN EMPLOYER’S DUTIES?, cont. Duties owed to those injured by employees - if an employee injures another in the scope of employment, the employer will be liable for damages - if the person is an independent contractor the employer will normally not be liable for the tort, unless the job is dangerous

17. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 17 WHAT ARE AN EMPLOYEE’S DUTIES? Duty to fulfill the employment contract Duty of obedience Duty of reasonable skill Duties of loyalty and honesty Duty of reasonable performance

18. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 18 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

19. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 19 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

20. LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 22 SLIDE 20 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.