Chapter 12

EmploymentRelationships andLabor Law

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12-2

Employment-at-will Doctrine

• This doctrine permits employers to terminate an at-will employee with or without advance notice and with or without just cause, subject to certain exceptions.

• The employment-at-will doctrine does not apply in cases where (1) the employee has an express contract, (2) courts have fashioned a common law exception, or (3) there is some specific statutory protection against job termination (such as antidiscrimination laws).

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Express Contracts

• One major exception to the employment-at-will rule occurs when an employee has an express contractual relationship with the employer that is intended to displace the employment-at-will rule.

• When the parties enter into a contract, the rights of the contract employee in the case of termination are spelled out in the contract.

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Implied Contracts

• An employment-at-will relationship may be converted to a contract relationship if the employer acted in a manner that would lead a reasonable person to believe that the employer intended to offer the employee protection from termination without cause.

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State Whistle-Blower Statute

• Whistle-blower is a colloquial term used in reference to an employee or agent who reports unlawful conduct or a statutory violation by his employer to the authorities.

• Each state follows its own whistle-blowing statute, but, most commonly, whistle-blowers are protected when they report the violation of a law or standard by their employer to the authorities.

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Federal Whistle-Blower Statutes

• Federal employees are protected from retaliation for whistle-blowing by the Whistleblower Protection Act of 1989.

• The law also covers employees of companies that contract with the government to provide goods or services. Additionally, some federal statutes give specific anti-retaliation protections for employees who disclose conduct that violates the particular statute.

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Minimum Wage

• The FLSA establishes a minimum wage to be paid to every employee covered under the act.

• Congress has raised the minimum wage to $7.25; (states are permitted to set a higher minimum wage level).

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Overtime compensation

• Standard work week: 40 hours/seven-day period.

• Exempt vs. Non-exempt:– Education or skill level or certifications required for the

position, salary level, compensation method– Amount of physical labor required– Amount of repetitive tasks– Degree of supervision required by the employer

12-9

Child Labor Laws

• Under age 14: No employment except newspaper sale and delivery.

• 14–15: Limited hours during school days; only nonhazardous jobs.

• 16–17: No limits on hours, but cannot work in hazardous jobs.

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Health Care

• Health Insurance Portability and Accountability Act (HIPPA) sets rules designed to protect employee medical records from disclosure.

• Consolidated Omnibus Budget Reconciliation Act (COBRA) mandates that employers offer continuous coverage eligibility to employee who has been terminated.

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Workplace Injuries

Workers’ compensation statutes establish a structure for an injured or ill employee to be compensated through a statutorily mandated insurance program as the exclusive remedy for workplace injuries or illnesses.

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Regulation of Workplace Safety

• Occupational Safety and Health Act (OSHA)1) setting of national safety standards, 2) mandating information disclosure/warning of

hazardous working areas/assignments, 3) record keeping and reporting requirements,4) imposing a general duty upon employers to

keep a workplace reasonably safe.

12-13

Drug and Alcohol Testing

• Most states permit employee testing so long as the employer follows certain procedural safeguards intended to ensure confidentiality, safety, and accuracy.

• Testing is usually allowed of any at-will employee or applicant.

12-14

Union Formation

• Authorization Cards

• Election

• Certification

12-15

Collective Bargaining

• The NLRA requires that both parties engage in good faith negotiations.

• This is not a requirement that one side or the other concede a particular term.

• The parties are obligated to demonstrate that they are engaged in moving toward an agreement.

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Strikes

The NLRA specifically allows for union employees to commence a strike in order to induce the employer to concede certain contract terms during collective bargaining.