1. 1 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Chapter 20 Employment Relationships

2. 2 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Introduction Historically, employment law was governed by the common law doctrine of “employment at will” where either employer or employee could terminate the relationship at any time, for any reason. Historically, employment law was governed by the common law doctrine of “employment at will” where either employer or employee could terminate the relationship at any time, for any reason. Today employment law is heavily regulated by state and federal statutes. Today employment law is heavily regulated by state and federal statutes.

3. 3 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. § 1: Employment-at-Will Traditionally, employment relationships have been by common law doctrine of “employment at will.” Traditionally, employment relationships have been by common law doctrine of “employment at will.” Either party may terminate at any time for any reason. Either party may terminate at any time for any reason. Exceptions: Contract, Tort, Public Policy. Exceptions: Contract, Tort, Public Policy.

4. 4 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Employment-at-Will Exception based on Contract Theory: Exception based on Contract Theory:  Courts hold implied contract exists, including oral contracts.  Termination may give ground for wrongful discharge. Exception based on Tort Theory: Exception based on Tort Theory:  Abusive discharge procedures.  Reliance on false promises.

5. 5 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Exception: Public Policy Whistleblowing occurs when an employee tells a supervisor or the press that the employer is engaged in some unsafe or illegal activity. Whistleblowing occurs when an employee tells a supervisor or the press that the employer is engaged in some unsafe or illegal activity. Protection under federal and state law. Protection under federal and state law. Whistleblower Protection Act. Whistleblower Protection Act.

6. 6 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. §2: Wage-Hour Laws Hours and Wages. Hours and Wages.  Davis-Bacon Act -- the prevailing wage act.  Walsh-Healey Act -- the beginning of minimum wages.  Fair Labor Standards Act (FLSA) -- an extension of wage and hour regulation to workers in interstate commerce. Child Labor. Child Labor.  FLSA prohibits oppressive child labor practices. Overtime Exemptions. Overtime Exemptions.

7. 7 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. §3: Worker Health and Safety The Occupational Safety and Health Act. (OSHA). The Occupational Safety and Health Act. (OSHA).  The fundamental federal law aimed toward safety in the workplace.  Enforcement is by OSHA, NIOSH, and the OSHRC.

8. 8 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. State Workers’ Compensation Laws Reduce employer liability to employees for workplace injuries, and provide a measure of assurance that workplace injuries will be compensated, regardless of the solvency of the employer, by: Reduce employer liability to employees for workplace injuries, and provide a measure of assurance that workplace injuries will be compensated, regardless of the solvency of the employer, by:  Requiring that injured employees make a claim against the employer’s workers’ compensation insurance policy, instead of suing the employer.  Requiring most employers to carry workers’ compensation insurance.

9. 9 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. §4: Income Security, Pension, and Health Plans The primary income security laws are: The primary income security laws are:  Social Security and Welfare.  Private Pension Plans. »Employee Retirement Income Security Act (ERISA) gives employee a vested right to receive pension benefits at a future date when she stops working.  Unemployment Compensation.

10. 10 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Income Security, Pension, and Health Plans COBRA prohibits the discontinuance of insurance benefits of workers who have voluntarily or involuntarily been separated from work, unless the involuntary separation was on the basis of gross misconduct. COBRA prohibits the discontinuance of insurance benefits of workers who have voluntarily or involuntarily been separated from work, unless the involuntary separation was on the basis of gross misconduct.  Employers must comply if they have more than 20 employees. Employer-Sponsored Group Health Plans. Employer-Sponsored Group Health Plans.

11. 11 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. §5: Family and Medical Leave Act The FMLA requires employers with over 50 employees to provide unpaid leave to employees who need to care for a spouse, child, or parent suffering with a serious medical condition. The FMLA requires employers with over 50 employees to provide unpaid leave to employees who need to care for a spouse, child, or parent suffering with a serious medical condition. The employee cannot be terminated for taking leave under the policy, and has the right to restoration to the same or a similar position upon return to work. The employee cannot be terminated for taking leave under the policy, and has the right to restoration to the same or a similar position upon return to work.

12. 12 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. FMLA Protects Employee’s Job and Health Benefits. Protects Employee’s Job and Health Benefits. Applies to Both Public and Private-Sector Employers. Applies to Both Public and Private-Sector Employers.  Case 20.1: Nevada Department of Human Resources v. Hibbs (2003). Remedies for Violations. Remedies for Violations.  Unpaid salary, lost benefits, job reinstatement and promotion.

13. 13 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. §6: Employee Privacy Rights More than 2/3 employers use some sort of electronic monitoring of employees. More than 2/3 employers use some sort of electronic monitoring of employees. Laws Protecting Employee Privacy Rights. Laws Protecting Employee Privacy Rights.  Constitutional and Tort law.  ECPA Privacy and Email Systems. Privacy and Email Systems.  Smith v. Pillsbury (1996).

14. 14 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Other Types of Monitoring Lie Detector Tests. Lie Detector Tests.  Prohibited, except under the ongoing investigation exception. Drug Testing. Drug Testing.  Most government employees are subject to testing and the rights of private employees vary from state to state.  Case 20.2: CITGO Asphalt Refining Co. v. Paper, Allied-Industrial, Chemical, and Energy Workers International Union Local NO. 2-991 (2004). AIDS Testing. AIDS Testing.  Some state statutes restrict AIDS testing.

15. 15 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. Other Types of Monitoring Electronic Performance Surveillance. Electronic Performance Surveillance.  Most limitations can be avoided if the employer informs employees that surveillance will occur. Screening Procedures. Screening Procedures.  Application question must have some reasonable connection to the job sought.

16. 16 COPYRIGHT © 2007 West Legal Studies in Business, a part of The Thomson Corporation. Thomson, the Star logo, and West Legal Studies in Business are trademarks used herein under license. §7: Employment-Related Immigration Laws The Immigration Reform and Control Act prohibits the hiring of illegal aliens. The Immigration Reform and Control Act prohibits the hiring of illegal aliens. The Immigration Act of 1990 limits the number of legal immigrants into the U.S. The Immigration Act of 1990 limits the number of legal immigrants into the U.S.