Business Law

Chapter 23Chapter 23

Employment Contracts and Minors Employment Contracts and Minors and Employmentand Employment

Employment Contracts and Minors and Employment The Employment RelationshipThe Employment Relationship

May be Formal or InformalMay be Formal or InformalAll are covered by Federal and State All are covered by Federal and State

StatutesStatutes

Labor-Management Relations

Formal Agreements with a UnionFormal Agreements with a Union Collective Bargaining AgreementCollective Bargaining Agreement

Grievance ProcedureGrievance ProcedureLayoffs, Seniority and even Hiring Layoffs, Seniority and even Hiring

Practices.Practices.Rate of Pay and BenefitsRate of Pay and Benefits

Professional Employment Contracts Professionals Negotiate Their Own Professionals Negotiate Their Own

ContractsContracts ExecutivesExecutives DoctorsDoctors LawyersLawyers

Rights and Duties of Employers and Employees Some are implied by lawSome are implied by law Most are by Federal or State StatuteMost are by Federal or State Statute ExpectationsExpectations

Follow rulesFollow rules Do tasks as instructedDo tasks as instructed Pay employees and taxes on timePay employees and taxes on time Treat each other fairlyTreat each other fairly

Terminations

Employment-at-willEmployment-at-will Relationship can be dissolved by either Relationship can be dissolved by either

party at any time.party at any time. Applies to most employment situations Applies to most employment situations

where there is no formal contract.where there is no formal contract. ExceptionsExceptions

Unjust dismissalUnjust dismissal

Implied Contracts

If an employer makes a promise that an If an employer makes a promise that an employee relies upon, the employee can employee relies upon, the employee can sue.sue.

Certain conditions must be met for there to Certain conditions must be met for there to be an implied contract where an employee be an implied contract where an employee can sue. See your text for details.can sue. See your text for details.

Disclaimers

Covers companies in employment-at-will Covers companies in employment-at-will situations.situations.

Can be used to “reset” the Can be used to “reset” the employer/employee relationship back to an employer/employee relationship back to an employment-at-will status.employment-at-will status. Regardless of promises or language in an Regardless of promises or language in an

employee handbook.employee handbook.Gives Employer an Upper Hand.Gives Employer an Upper Hand.

Implied Covenant

The Covenant is a promise between employer and The Covenant is a promise between employer and employee.employee. Employee is honestEmployee is honest Shows up on timeShows up on time Does their jobDoes their job

Employer pays employeeEmployer pays employee On timeOn time Meets other obligationsMeets other obligations

Restrictive Employment Covenants Employees agree not to work for a Employees agree not to work for a

competitor for a specific period of time competitor for a specific period of time after leaving employer.after leaving employer. Restrictions must be spelled out in Restrictions must be spelled out in

writing.writing. Usually involve trade secrets.Usually involve trade secrets.

Legislation Affecting the Employment Relationship Federal Labor LawsFederal Labor Laws

Wagner ActWagner ActAlso called The National Labor Also called The National Labor

Relations Act of 1935.Relations Act of 1935.Dealt primarily with collective Dealt primarily with collective

bargaining issues.bargaining issues.

Federal Labor Laws

Taft-Hartley ActTaft-Hartley ActAlso called the Labor-Movement Also called the Labor-Movement

Relations ActRelations ActLimited Union PowerLimited Union Power

Taft-Harley Act

Allowed states to pass “Right to Work” laws.Allowed states to pass “Right to Work” laws. These prohibited union-only sho psThese prohibited union-only sho ps

Allowed the president to impose a 60-day cooling Allowed the president to impose a 60-day cooling off period if a strike posed a threat to the nation’s off period if a strike posed a threat to the nation’s health or safety.health or safety.

Required unions to give notice of intent to strike.Required unions to give notice of intent to strike. Required unions to engage in collective bargaining.Required unions to engage in collective bargaining.

Landrum-Griffin Act

Was an amendment to the Wagner Act.Was an amendment to the Wagner Act. Passed in 1959Passed in 1959 Unions had to register their by laws with Unions had to register their by laws with

the Secretary of Laborthe Secretary of Labor Unions were required to provide full Unions were required to provide full

financial disclosure.financial disclosure. Union member’s “Bill of Rights”.Union member’s “Bill of Rights”.

Child Labor Laws

Originally these were State Laws.Originally these were State Laws. Massachusetts and Connecticut were the Massachusetts and Connecticut were the

first two states.first two states. By 1934 44 states had laws on the books By 1934 44 states had laws on the books

limiting child labor.limiting child labor.

Federal Child Labor Laws

Passed in 1938 as part of the Fair Labor Passed in 1938 as part of the Fair Labor Standards Act of 1938.Standards Act of 1938.

Updated in 1974.Updated in 1974.Prevented interstate commerce of Prevented interstate commerce of

goods produced by “Oppressive Child goods produced by “Oppressive Child Labor”Labor”

Prevented children from being Prevented children from being employed in dangerous jobs.employed in dangerous jobs.

Federal Child Labor Laws

Limited children to jobs judged not to Limited children to jobs judged not to interference with school.interference with school.

Exceptions To Child Labor Laws

Children working in Agriculture after Children working in Agriculture after school hours.school hours.

Child Actors.Child Actors. Children working for their parents.Children working for their parents. Children delivering newspapers.Children delivering newspapers.

Industry-Education Cooperation

Many industries restrict the use of child Many industries restrict the use of child labor.labor.

Schools are often the ones who monitor Schools are often the ones who monitor child labor.child labor. In most states the schools are in charge of In most states the schools are in charge of

issuing work permits.issuing work permits.