Chapter 1

 Laws regulating the employment relationship  Evolutionary in nature  Importance of understanding employment law

 Agency relationship exists when someone (agent) acts on behalf of another (principal).  Employee is a representative of the employer and acts in its place.  Each has a responsibility to one another

Life is good, right…?

 At-will-employment  An employment relationship where there is no contractual obligation to remain in the relationship, either party may terminate the relationship at any time, for any reason as long as the reason is not prohibited by law or other exception to at will ◦ DIFFERS between states –  Wisconsin – Violation of law, violations of public policy, constructive discharge, implied contract

 Violations of Laws ◦ Constitutes wrongful discharge  Violation of Public Policy  Constructive Discharge  Violation of Implied Contract  **WISCONSIN DOES NOT EMBRACE THE GOOD FAITH AND FAIR DEALINGS exception to at will**

 Current “best practice” advice instructs business to ensure there is a clause in the employee handbook clarifying the at will status of employment.  Take a look at the employee handbooks you have with you.

 #1 – Does Mark have a basis for unlawful termination? Explain  #2 – Does Jenna have a basis for unlawful termination? Explain

“A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.” Source:

 Common-Law Agency Test  IRS 20-factor analysis  Economic Realities Test

 #3 – Is Ariana an employee or an independent contractor? Explain

FEDERAL COURT SYSTEM

 Page  “Reasonable” ◦ Time ◦ Distance ◦ Scope ◦ Realities of the industry ◦ Nature of the occupation ◦ Confidential customer lists difficult

 WIS. STAT. § , which provides:  A covenant by an assistant, servant or agent not to compete with his or her employer or principal during the term of the employment or agency, or after the termination of that employment or agency, within a specified territory and during a specified time is lawful and enforceable only if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Any covenant … imposing an unreasonable restraint is illegal, void and unenforceable even as to any part of the covenant or performance that would be a reasonable restraint.

 An orthopedic surgeon signs an employment contract with ABC Clinic which states that, should he sever ties with ABC, he will not be allowed to practice within the county (NOT COUNTRY but COUNTY) for a period of 18 months. A – Yes B - No

 #1 – How does Nan defend herself? How does the company defend? Is the non-compete reasonable? Explain

Who is the plaintiff? Defendant? What court wrote this opinion? If this were a court of appeals case what terms would replace “Plaintiff” and “Defendant” Terminology that needs clarification? Facts? Arguments of both sides? Who won and why?