Essentials Of Business Law Chapter 28 Employment Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Essentials of Business LawChapter 28-2 Employee – Employer Relationship Employment at will  Employer may terminate an employee at any time for a good reason, a bad reason, or no reason at all An employee many not be terminated for:  Jury duty service  Being called to active duty in the military  Whistleblowing  Illegal discrimination  Many other reasons

Essentials of Business LawChapter 28-3 Employment Contracts Employer and employee enter into a formal, written contract of employment  Specifies that the employer agrees to pay, and the employee agrees to work, for a specified period of time at a specified salary Arbitration clauses in employment contracts are enforceable provided the employee:  Has signed the agreement  Has a reasonable time to file a claim  Has access to the same remedies that a court could provide  Has access to an arbitrator with expertise in employment law  Has the right to be represented by an attorney  Does not have to pay the cost of arbitration

Essentials of Business LawChapter 28-4 Employee Handbook Contain the many policies of the firm  Maybe considered a kind of contract between the employer and the employee Typically contains the following information:  History of the company  Hiring procedures  Hours of employment  Payment of salaries  Salary increments  Promotions  Termination procedures  Benefits  Leaves of absence  Safety and security  Miscellaneous policies

Essentials of Business LawChapter 28-5 Employee References Employer must exercise care when providing references for past or current employees Invasion of privacy  Disclosing personal, irrelevant information irrespective of whether such information is true or false Defamation  Disclosing information to a third party that is untrue, irrespective of whether or not it relates to the employee’s job performance An employer can safely disclose:  The employee’s prior employment and educational history  The employee’s character as such relates to the job  The employee’s performance capabilities  The employer’s willingness to re-hire the employee

Essentials of Business LawChapter 28-6 Worker Health And Safety Workers’ compensation  Insurance that allows employees to recover damages for work-related injuries  Employee does not need to prove negligence on the part of the employer  Exclusive remedy Employee can only recover damages through workers’ compensation

Essentials of Business LawChapter 28-7 Worker Health And Safety Occupational Safety and Health Act  Promote safety and health in the workplace Occupational Safety and Health Administration  Requires that companies maintain records of employee work-related accidents and sicknesses  Inspects workplaces to be certain that these work sites comply with safety and health standards  Imposes penalties ranging from fines to closing the facility

Essentials of Business LawChapter 28-8 Discrimination In Employment Civil Rights Act of 1964  Federal statute designed to protect individuals from illegal discrimination  Title VII covers discrimination in employment based on: Race, creed, color, sex, and place of national origin  Created the Equal Employment Opportunity Commission Federal agency responsible for administering to laws prohibiting discrimination in employment

Essentials of Business LawChapter 28-9 Discrimination In Employment The Age Discrimination in Employment Act  Protects individuals over age 40 The Pregnancy Discrimination Act The Americans With Disabilities Act The Civil Rights Act of 1991  An employee may collect punitive damages  An employee may recover for emotional distress related to discrimination Sexual harassment

Essentials of Business LawChapter Labor Unions National Labor Relations Board  Administers laws relating to labor unions Employees rights  To form, join, and assist a labor union  To bargain collectively through representatives of their own choosing  Not to be discriminated against because of their union activities  To vote for union leadership in democratically held elections  If the employee has a dispute with his or her union, he or she may retain an attorney and file a lawsuit

Essentials of Business LawChapter Labor Unions Rights of the union  To represent all employees of a company who are a part of the bargaining unit  To negotiate a contract with the employer  To ensure that the employer bargains in good faith during negotiations  To call a strike if an agreement is not reached Rights of the employer  Freedom from featherbedding  Secondary boycotts  To ensure that the union bargains in good faith  To engage in a lockout if an agreement is not reached