Employment Law Chapter 22

Objectives 22-1  Describe how employment contracts are made  Explain how employment contracts are terminated Section 22-1 Assignment p , 10

What is Employment?  A legal relationship based on a contract 1. Employer contracts to pay employee to do work under the employer’s supervision & control 2. Independent contractor –Agrees to produce a finished job without being supervised

Employment Contracts  Unusual contracts 3 Sources for Terms of Employment Contracts: 1. Express agreements 2. Implied Agreements 3. State and Federal Laws

Terms of Employment Contracts 1. Express Agreements –Written &/or oral –Length, compensation, fringe benefits –Advance notice of termination if length is expressed ie. Sports Professionals, entertainers, top-level managers 2. Implied Agreements –Employment at will doctrine – employee can be let go or quit at any time b/c no length of employment is specified –Hourly wage earners –“for a specified time” seasonal workers

Terms of Employment Contracts 3. Terms Imposed by Law –State & Federal Laws –Minimum wage –Hiring of racial & other minorities over other more qualified applicants, if necessary.

How are employment contracts terminated? 1. By Performance –Most terminated by completion 2. By Termination at Will – Abruptly quitting and references – Wrongful Discharge, Violation of Contract Terms, Govt. worker 3. By Material breach –Obligations of contract are not fulfilled 4. “Discharged Without Cause” – Unemployment Compensation

How are Employment Contracts Terminated?  Terminate at Will Either party can terminate at any time BUT … Either party can terminate at any time BUT … A.Wrongful Discharge include:  Race, religion, gender, age, handicap, pregnant, veteran status, or national origin, union activities –Refuse to commit perjury for the company –Insist on filing a workers’ compensation claim –Report violations of law by the company –Urge the company to comply with the law

How are Employment Contracts Terminated? B.Violation of Contract Terms  Employers “treat employees fairly” need ‘fair cause’ to terminate C.Government Employees  Public employees entitled to due process  More difficult to discharge

How are employment contracts terminated? D. Unemployment Compensation –Discharged without a cause: receive pay from government or private insurance company –Discharged with a cause: no compensation –Under Social Security Act of 1935 –Available to part-time workers

Objectives 22-2  List an employer’s duties  Name an employee’s duties Assignment p , 10

Employer’s Duties to Employees 1. Reasonable Treatment 2. Safe Working Conditions –Tools, equipment, machinery, & building –Not harmful to health, safety, morals or reputation

Employer’s Duties to Employees 3. Fair Labor Standards –Minimum wage, maximum hours –Doesn’t apply to executives, administrator, or professional workers –Overtime –100 more hrs than Japanese counterparts –350 more hrs than European –Special rules for trainees, apprentices, student workers, & handicapped workers (85% of minimum wage)

Employer’s Duties to Employees 4. Payroll Deductions –Legally obligated to withhold federal & state income taxes –FICA (Social Security) – Federal Insurance Contributions Act –Paid by Employers  Workers’ Compensation (on-the-job injuries)  Unemployment insurance (short-term income for people who lost their jobs)

Employer’s Duties to Employees 5. Military Service –Military Selective Service Extension Act of 1950  Rehired by employer after a honorable discharge  Must still be able to do the work 6. Voting –Given sufficient paid time off to vote 7. Family & Medical Leaves –12 wks of unpaid work

Employer’s Duties to Employees Minors Protecting minors because: Protecting minors because: o A person’s early years are best used to obtain an education o Certain work is harmful or dangerous for young people o Child labor at low wages takes jobs from adults

Employer’s Duties to Employees Minors  State Laws  Minimum age  Limited hours  Max hrs work in 1 day  Prohibit night work  Prescribed grade to be complete  Required age for hazardous jobs  Restrict hrs of wk b/w 5am – 10pm  Federal Laws  Fair Labor Standards Act (FLSA)  Minimum protection for minors  Under 14 can’t work  Exceptions: –Working for parents –Agricultural jobs –Delivering newspapers –Actors –Making wreaths in home

Employer’s Duty to Those Injured by Employees  Any employee commits a tort to another employee while in the scope of employment –Employer is liable  Employee intentionally causes damage –Employer is possibly liable  Independent Contractor –If job isn’t dangerous = person who hired is not liable –If job is dangerous = person who hired is liable

Employee’s Duties  Fulfill Employment contract A. Obedience –Reasonable rules & orders of employers B. Reasonable Skill –Those who accept work possess the skill, experiences, or knowledge necessary to do it.

Employee Duties C. Loyalty & Honesty –Obligated to look out for the employer’s best interest D. Reasonable Performance –Failing to perform is cause for termination –Unable to perform b/c of illness or injury could result in termination

CH. 22 Quiz 1. What are the 3 terms of employment contracts? 2. What are the 2 Fair Labor Standards that employers need to follow for all non-salary workers? 3. What are 4 employee duties? Extra Credit 4. What does FICA stand for? 5. Do employers in Colorado have to give you a reason for firing you? Why? 6. At what age can someone start to work according to federal laws?

Case Analysis Say It Aint So Jason, P 409 Activity Youth Employment Laws Worksheet