Essentials Of Business Law

Chapter 28

Employment Law

McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Essentials of Business Law Chapter 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 Law Chapter 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 Law Chapter 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 Law Chapter 28-5

Employee References

Employer must exercise care when providing references for past or current employeesInvasion 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 Law Chapter 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 Law Chapter 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 Law Chapter 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 Law Chapter 28-9

Discrimination In Employment

The Age Discrimination in Employment Act Protects individuals over age 40

The Pregnancy Discrimination Act The Americans With Disabilities ActThe 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 Law Chapter 28-10

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 Law Chapter 28-11

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