1. 28.1 b a c kn e x t h o m e Chapter 28 Objectives  Recognize how the relationship of employer and employee arises.  Identify the statutory modifications of an employer’s defenses under the common law.  Describe the liability of an employer to third parties for acts of employees.  Name the duties an employee owes the employer. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

2. 28.2 b a c kn e x t h o m e Employer/Employee Relationships  Contracts arise only from a contract of employment.  Parties seldom mention contract period; terms of compensation determine the contract period.  Terms other than compensation are determined by custom, law, and union contracts.

3. 28.3 b a c kn e x t h o m e Duties and Liabilities of Employers Explain what is meant by:  Duty to exercise care.  Duty to provide reasonably safe place to work.  Duty to provide safe tools and appliances.  Duty to provide competent employees for the task.  Duty to instruct employees as to any possible dangerous nature of employment. Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss

4. 28.4 b a c kn e x t h o m e Common-Law Defenses of the Employer Contributory Negligence Rule The Fellow-Servant Rule Assumption-of-Risk Rule

5. 28.5 b a c kn e x t h o m e Statutory Modification of Common Law Modification of common-law defenses Workers’ Compensation  Allows an employee or beneficiary to recover damages for injury or death.  Does not consider employee negligence a factor. Occupational Safety and Health Act  Applies to every business conducting interstate commerce except governments.

6. 28.6 b a c kn e x t h o m e Employees’ Duties to Employers Job performance  Employees must perform their jobs faithfully and honestly to advance employer’s interests. Business confidentiality  Employees must not divulge any sensitive business matters. Granting of right to use inventions  Inventions belong to the employee who devised them, but the employer has the right to use the invention without charge.

7. 28.7 b a c kn e x t h o m e Social Security Act Yes or no - can the following receive Social Security benefits?  People who are over 65 and retire from the workforce  Yes  Farmers and self-employed business people  Yes  Samuels, age 66, who hasn’t yet applied for benefits  No Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz