section 20.1

Employment Relationships Employment Relationships Section 20.1Section 20.1

Understanding Business and Personal Law


Employment Law

Section 20.1Section 20.1Employment RelationshipsEmployment Relationships

Section 20.2Section 20.2Legislation Affecting Employment Legislation Affecting Employment

2020ChapterChapter Employment LawEmployment Law



Employment Law

What You’ll Learn

How to define employment-at-will (p. 434)How to define employment-at-will (p. 434)

How to identify those situations that fall How to identify those situations that fall outside of the doctrine of employment-at-outside of the doctrine of employment-at-will (p. 434)will (p. 434)



Employment Law

What You’ll Learn

How to identify the exceptions to How to identify the exceptions to employment-at-will (p. 436)employment-at-will (p. 436)

How to distinguish between implied How to distinguish between implied contract and implied covenant contract and implied covenant (pp. 438 & 441)(pp. 438 & 441)



Employment Law

Why It’s Important

Understanding the nature of at-will Understanding the nature of at-will employment will help you determine whether employment will help you determine whether your rights have been violated if you are your rights have been violated if you are discharged by an employer.discharged by an employer.



Employment Law

Legal Terms

employment-at-will (p. 434)employment-at-will (p. 434)union (p. 434)union (p. 434)collective bargaining agreement (p. 434)collective bargaining agreement (p. 434)grievance procedure (p. 435)grievance procedure (p. 435)severance pay (p. 435)severance pay (p. 435)



Employment Law

Legal Terms

promissory estoppel (p. 437)promissory estoppel (p. 437)implied contract (p. 438)implied contract (p. 438)disclaimer (p. 439)disclaimer (p. 439)public policy tort (p. 440)public policy tort (p. 440)implied covenant (p. 441)implied covenant (p. 441)



Employment Law

Employment-at-Will Unionized Employees

Collective Bargaining AgreementsLayoffs and Plant ClosingsIllegal DiscriminationRights and Duties of Employers and Employees

Section OutlineSection Outline



Employment Law

Exceptions to Employment-at-Will Wrongful Discharge

Section OutlineSection Outline



Employment Law

Pre-Learning Question Pre-Learning Question

What do you think employment-at-will is?



Employment Law

The doctrine known as The doctrine known as employment-employment-at-willat-will is the general rule governing is the general rule governing employment in most states. employment in most states.

Employment-at-Will Employment-at-Will



Employment Law

According to this doctrine, an According to this doctrine, an employer is permitted to discharge an employer is permitted to discharge an employee at any time, for any or no employee at any time, for any or no reason, with or without notice.reason, with or without notice.




Employment Law

This doctrine is based on the idea that This doctrine is based on the idea that both parties in an employment both parties in an employment relationship must be free to leave the relationship must be free to leave the employment arrangement at any time.employment arrangement at any time.




Employment Law

If employees were not free to leave an If employees were not free to leave an employment relationship at any time, employment relationship at any time, then they would actually be slaves.then they would actually be slaves.




Employment Law


Do you know anyone who belongs to a labor union?



Employment Law

The doctrine of employment-at-will The doctrine of employment-at-will does not apply to employees who are does not apply to employees who are protected by a union. protected by a union.

Unionized Employees Unionized Employees



Employment Law

A A unionunion is an organization of is an organization of employees that is formed to promote employees that is formed to promote the welfare of its members. the welfare of its members.




Employment Law

Union members have hiring and firing Union members have hiring and firing procedures built into their procedures built into their collective collective bargaining agreementsbargaining agreements, contracts , contracts negotiated by the employer and negotiated by the employer and representatives of the labor union that representatives of the labor union that cover issues related to employment.cover issues related to employment.




Employment Law

A collective bargaining session A collective bargaining session generally concerns issues such as generally concerns issues such as

Collective Bargaining Agreements Collective Bargaining Agreements

Working conditionsWorking conditionsWagesWagesBenefitsBenefits



Employment Law

Job securityJob securityLayoffsLayoffsFiring policies Firing policies




Employment Law

Collective bargaining agreements Collective bargaining agreements generally include the steps that must generally include the steps that must be followed in a grievance procedure. be followed in a grievance procedure.




Employment Law

A A grievance proceduregrievance procedure establishes a establishes a series of steps that an employee must series of steps that an employee must follow to appeal the decision of an follow to appeal the decision of an employer who may have violated the employer who may have violated the collective bargaining agreement.collective bargaining agreement.




Employment Law

Collective bargaining agreements do Collective bargaining agreements do not guarantee that employees will not guarantee that employees will have a job for life. have a job for life.

Sometimes, economic conditions Sometimes, economic conditions force layoffs or plant closings. force layoffs or plant closings.

Layoffs and Plant Closings Layoffs and Plant Closings



Employment Law

A collective bargaining agreement A collective bargaining agreement may also provide for may also provide for severance payseverance pay, , which is a set amount of money to which is a set amount of money to compensate employees for being compensate employees for being discharged and to help them through discharged and to help them through the time that they remain unemployed.the time that they remain unemployed.

Layoffs and Plant Closings Layoffs and Plant Closings



Employment Law

Even employees not covered by a Even employees not covered by a collective bargaining agreement collective bargaining agreement cannot be discharged for a reason cannot be discharged for a reason that is discriminatory in nature. that is discriminatory in nature.

Illegal Discrimination Illegal Discrimination



Employment Law

According to the Civil Rights Act of According to the Civil Rights Act of 1964, a discharge is discriminatory if it 1964, a discharge is discriminatory if it occurs because of a person’s race, occurs because of a person’s race, color, creed, national origin, or color, creed, national origin, or gender.gender.




Employment Law

Similarly, the Age Discrimination in Similarly, the Age Discrimination in Employment Act protects people from Employment Act protects people from being discharged because of their being discharged because of their age.age.




Employment Law

Employers and employees have Employers and employees have certain mutual expectations in their certain mutual expectations in their working relationships.working relationships.

Rights and Duties Rights and Duties of Employers and Employees of Employers and Employees



Employment Law

20.120.1


EmployersEmployers

RightsRights DutiesDuties

To expect employees:To expect employees: To provide:To provide:• To have the experience, To have the experience,

education, and skills education, and skills they claim to possessthey claim to possess

• To provide a reasonable To provide a reasonable amount of work within a amount of work within a reasonable amount of reasonable amount of timetime

• Regular payRegular pay• A safe work A safe work

environmentenvironment• Appropriate job trainingAppropriate job training• Opportunities to earn Opportunities to earn

raises and promotionsraises and promotions• Safe tools Safe tools

To tell employees:To tell employees:• What tasks to performWhat tasks to perform• How to perform them How to perform them



Employment Law

20.120.1


EmployeesEmployees

RightsRights DutiesDuties

To be:To be:

To be able to make To be able to make reasonable complaints. reasonable complaints.

• LoyalLoyal• HonestHonest• Dependable Dependable

To abide by employer’s To abide by employer’s rules. rules.



Employment Law

Name three things employers can expect from their employees.



Employment Law

ANSWERANSWER

Any three of the following: to have the experience, education, and skills that they claim to have; to perform a reasonable amount of work in a reasonable amount of time;



Employment Law

ANSWERANSWER

to be loyal, honest, and dependable; and to abide by the employer’s rules.



Employment Law

Name three things employees can expect from their employers.



Employment Law

ANSWERANSWER

Any three of the following: to provide regular pay; a safe work environment; appropriate job training; opportunities to earn raises and promotions; and safe tools.



Employment Law

ANSWERANSWER

Employees can also expect to be able to make reasonable complaints.



Employment Law


When do you think the courts make exceptions to the employment-at-will doctrine?



Employment Law

Recall that the employment-at-will Recall that the employment-at-will doctrine states that an employer is doctrine states that an employer is permitted to discharge an employee at permitted to discharge an employee at any time, for any or no reason, and any time, for any or no reason, and with or without notice.with or without notice.

Exceptions to Employment-at-Will Exceptions to Employment-at-Will



Employment Law

Sometimes terminating an Sometimes terminating an employment contract under the employment contract under the doctrine of employment-at-will will doctrine of employment-at-will will result in injustices, and courts will result in injustices, and courts will challenge the doctrine by ruling challenge the doctrine by ruling against the wrongful discharge.against the wrongful discharge.

Exceptions to Employment-at-Will Exceptions to Employment-at-Will



Employment Law

Wrongful discharge, or unjust Wrongful discharge, or unjust dismissal, provides employees with dismissal, provides employees with grounds for legal action against grounds for legal action against employers who have treated them employers who have treated them unfairly.unfairly.

Wrongful Discharge Wrongful Discharge



Employment Law

The courts have established five The courts have established five standards it will consider regarding standards it will consider regarding unjust termination.unjust termination.


1.1. Promissory estoppelPromissory estoppel2.2. Implied contractImplied contract3.3. Public policy tortPublic policy tort



Employment Law

4.4. Intentional infliction of emotional Intentional infliction of emotional distressdistress

5.5. Implied covenantImplied covenant




Employment Law

Promissory estoppelPromissory estoppel has been used has been used by some courts as proper grounds for by some courts as proper grounds for unjust dismissal lawsuits. unjust dismissal lawsuits.

However, four elements must be However, four elements must be proven.proven.

Promissory Estoppel Promissory Estoppel



Employment Law

1.1. The employer makes a promise to The employer makes a promise to an employee that the employer can an employee that the employer can reasonably expect the employee to reasonably expect the employee to rely upon.rely upon.

Four Elements Four Elements of Promissory Estoppel of Promissory Estoppel



Employment Law

2.2. The employee actually relies upon The employee actually relies upon that promise, and as a result, does that promise, and as a result, does or doesn’t do something.or doesn’t do something.




Employment Law

3.3. The employee ordinarily would not The employee ordinarily would not have acted or refrained from acting have acted or refrained from acting had it not been for the employer’s had it not been for the employer’s promise.promise.




Employment Law

4.4. The employee is in some way The employee is in some way harmed by the employer’s failure to harmed by the employer’s failure to honor the promise.honor the promise.




Employment Law

The The implied contractimplied contract exception exception arises when an employer has said, arises when an employer has said, written, or done something to lead the written, or done something to lead the employee to reasonably believe that employee to reasonably believe that he or she is not an at-will employee.he or she is not an at-will employee.

Implied Contract Implied Contract



Employment Law

Most federal and state courts that Most federal and state courts that have recognized that the implied have recognized that the implied contract exception will still allow contract exception will still allow employers to maintain an employers to maintain an employment-at-will arrangement by employment-at-will arrangement by using a disclaimer.using a disclaimer.




Employment Law

A A disclaimerdisclaimer is a statement that holds is a statement that holds that, regardless of any provisions, that, regardless of any provisions, policies, or oral promises to the policies, or oral promises to the contrary, an employment-at-will contrary, an employment-at-will situation still exists between the situation still exists between the employer and its employees.employer and its employees.




Employment Law

Many states now permit a fired Many states now permit a fired employee to recover compensatory employee to recover compensatory and punitive damages in a and punitive damages in a public public policy tortpolicy tort if he or she can prove the if he or she can prove the firing violated public policy.firing violated public policy.

Public Policy Tort Public Policy Tort



Employment Law

Public policy holds that no one should Public policy holds that no one should be allowed to do anything that tends be allowed to do anything that tends to hurt the public at large.to hurt the public at large.

Public Policy Tort Public Policy Tort



Employment Law

Some courts have permitted Some courts have permitted discharged employees to bring a tort discharged employees to bring a tort lawsuit against their former employers lawsuit against their former employers for intentional infliction of emotional for intentional infliction of emotional distress. distress.

Intentional Infliction Intentional Infliction of Emotional Distress of Emotional Distress



Employment Law

However, an employer’s conduct must However, an employer’s conduct must be extremely outrageous to qualify as be extremely outrageous to qualify as such.such.

Intentional Infliction Intentional Infliction of Emotional Distress of Emotional Distress



Employment Law

The The implied covenantimplied covenant principle holds principle holds that any employment relationship is that any employment relationship is based on an implied promise that the based on an implied promise that the employer and employee will be fair employer and employee will be fair and honest with one another. and honest with one another.

Implied Covenant Implied Covenant



Employment Law

Unlike implied contract, the existence Unlike implied contract, the existence of an implied covenant exists simply of an implied covenant exists simply because the employment relationship because the employment relationship exists.exists.

Implied Covenant Implied Covenant



Employment Law

Reviewing What You Learned

1. What is employment-at-will?

Section 20.1 Assessment



Employment Law


An employer is permitted to discharge an employee at any time, for any reason, for no reason, with or without notice.


Answer



Employment Law


2. What situations fall outside of the doctrine of employment-at-will?




Employment Law


Employees protected by a union.


Answer



Employment Law


3. What are the exceptions to employment-at-will?




Employment Law


Promissory estoppel, implied contract, public policy tort, intentional infliction of emotional distress, and implied covenant.


Answer



Employment Law


4. What is the difference between implied contract and implied covenant?




Employment Law


Implied contract: something that an employer says, writes, or does that leads an employee to the reasonable belief that the employment situation is something other than at-will.


Answer



Employment Law


Implied covenant: doctrine that says that implied within any employment arrangement is the agreement that employees and employers will treat each other fairly.


Answer



Employment Law


Critical Thinking ActivityEmployment-at-WillWhy have the courts begun to carve out exceptions to employment-at-will?



Employment Law


Critical Thinking Activity AnswerEmployment-at-WillTerminating an employment contract under the doctrine of employment-at-will has occasionally resulted in injustices.



Employment Law


Critical Thinking Activity AnswerEmployment-at-WillAs a result, many courts are challenging the employment-at-will doctrine with decisions against firing employees without justification.



Employment Law


Legal Skills in ActionEmployment Rights and Duties Your Uncle Ian was recently approached at work by a representative of a union that is attempting to organize the workers at his plant. Uncle Ian believes that as a union member, he will be guaranteed a job for life.



Employment Law


Legal Skills in ActionEmployment Rights and Duties Send an e-mail message to your Uncle Ian explaining why the union can’t guarantee him lifelong employment.



Employment Law


Legal Skills in Action AnswerEmployment Rights and Duties The e-mail to Uncle Ian should include that while unions may provide collective bargaining agreements, they do not guarantee that employees will have a job for life.



Employment Law


Legal Skills in Action AnswerEmployment Rights and Duties If economic conditions force layoffs or plant closings, some or all employees may lose their jobs.

Employment Relationships Employment Relationships End of Section 20.1End of Section 20.1

section 20.1

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