Chapter 22

Employment Law

Definitions• Employment - a legal relationship based on a contract that calls for one to be paid for working under another's direction and control.

• Employer - the party who pays someone in order to direct and control that person’s activities.

• Employee - the party who is paid to serve under the direction and control of the employer.

• Independent Contractor - agrees to produce a finished job without direction or control.

How are Employment Contracts

Established?

• Express• Implied• By Law

Express

• Oral or written documents• Examples - sports professionals, entertainers, top-level managers, and union members

Derek Jeter / New York Yankees Express Contract

Implied

• Employment at will - an employer can discharge an employee at any time for any cause or even without cause.

• Other common implied terms:– Wait staff pools tips– Factory workers provide own safety shoes

By Law

• Must pay minimum wage• Hiring of minorities

How are Employment Contracts

Terminated?

• By Performance• At Will• Breach of Contract

By Performance

• Completion of the job• The period of time specified is over

At Will• The employer and employee do not specify a length of time

• Wrongful discharge - limitation to employment at will:– Race, religion, gender,age, disability, pregnancy, national origin

– Refusal to commit perjury for employer– Filing a workers comp claim– Report violations– Urge company to comply with law

• Government (Public) Employees - entitled to due process

Breach of Contract

• Obligations are not fulfilled• Examples:

– Employer - fails to pay an agreed upon monthly check

– Employee - fails to perform the tasks for which they were hired

Discharged Without Cause

• Terminated despite having complied with all terms of their contract

• Entitled to Unemployment Compensation

• Discharged for Cause - not eligible for unemployment– Felonious conduct– Unlawful strike– Prison sentence > 30 days– Positive drug test– Willful misconduct

Employers Duties

• Reasonable Treatment• Sage Working Conditions• Fair Labor Standards• Payroll Deductions• Military Service• Voting• Family and Medical Leaves

Employment of Minors

• Principles of Child Labor Protection– A persons early years are for education– Certain work is harmful/dangerous– Child labor takes jobs from adults

• State law examples– Set maximum number of hours per day– Prohibits night work– Prescribe the grade in school before employed

– Sets age requirements for dangerous work– Restricts hours of work between 10pm and 5am

• Federal law– Fair Labor Standards Act– Illegal to work under 14 years (certain exceptions)

My Cotton Dress

Duties to those Injured by Employees

• Scope of employment - the employer is liable for damages if an employee commits a tort while doing his/her job.

• Independent Contractors are held liable for their own actions– Except in dangerous situations

Duties of the Employee

• Fulfill employment contract• Obedience• Reasonable skill• Loyalty and Honesty• Reasonable Performance