Ch. 20 Guided Lecture Notes Outline (1)

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Chapter 20: Employment Relationships I. Employment at Will – (definition) A. Application of the Employment at Will Doctrine – the employment relationship may be terminated by either party at any time and for any reason, subject to certain exceptions. B. Exceptions to the Employment at Will Doctrine: 1. Implied Contract – guarantees of continued employment can create an implied contract. 2. Implied Covenant of Good Faith – some states hold that the employment relationship creates an implied promise to act in good faith. So, if the employer fires an employee for an arbitrary or unjustified reason, it may be considered bad faith. 3. Public Policy – applies when the employer fires a worker for reasons that violate a fundamental public policy of the state. What is public policy? Where do you find it? a. Firing violates common law rules, including Tort Law: Examples: 1. Employer directs employee to commit a crime…
2. Example 20.2: fraud (tort) by the employer b. Employer fires employee for Whistleblowing – Definition of Whistleblowing (WB): When an employee tells a government official, upper management, or the press that her employer has engaged in some unsafe or illegal activity. Statutes protecting Whistleblowing: 1) (Federal) Whistleblower Protection Act of 1989 – 2) Most states have whistleblower statutes that protect employees Examples of WB Statutes in Texas : Public Employee Whistleblower Act: Other WB Statutes of Texas: 3) Many other statutes prevent retaliation (similar to whistleblowing). Examples of Statutes: Filing a worker’s compensation claim Case in Point 20.3 and Case 20.1 (Caterpillar, Inc. v. Sudlow (Indiana 2016) – on your own Anti-Discrimination Statutes – Federal/State discrimination laws discussed in ch. 21; and union laws/union membership in ch. 22
C. Wrongful Discharge. 1. The employer has fired the employee in violation of the employment contract between the parties; or 2. The employer has fired the employee in violation of a statute or common law. II. Wage-Hour Laws A. Fair Labor Standards Act of 1938 (FLSA) 1. Child Labor rules a. Children under Fourteen – b. Children ages Fourteen & Fifteen - c. Children ages Sixteen & Seventeen - 2. Minimum Wages a. Federal: b. State: 3. Tipped Workers – direct wages of $2.13 an hour plus tips must equal federal minimum wages 4. Overtime – any employee who agrees to work more than forty hours per week must be paid no less than one and a half times his regular pay for all hours over forty. a. Exempt employees: 1) 2) 3) 4) 5) And those making more than $________/week or $__________/year.
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III. Family Medical Leave Act of 1993 (FMLA) A. Coverage and Application: 1. Employers who have 50 or more employees must provide employees with up to 12 weeks unpaid family or medical leave during any 12-month period. 2. During the leave, the employer must continue the worker’s health-care coverage. 3. Employee is guaranteed to return to the same or a comparable position after leave. 4. Exceptions to coverage: a. “Key” employee exception – b. Must have worked at least 1 year with the company. c. Must have worked at least 1250 hours in the preceding year. B. Requirements for Family or Medical Leave: 1. 2. 3. 4. 5. Exigent circumstances arising out of the fact that spouse, son, daughter, or parent is covered military member on active duty – get up to 26 weeks in 12- month period to care for family member. Case 20.3 Ballard v. Chicago Park District (7 th Cir. 2014) – FMLA leave for a trip to Las Vegas as an “end of life” goal for dying mother was protected – care not restricted to a particular place, like “home”.
III. Worker Health & Safety. A. Occupational Safety & Health Act of 1970 – provides for specific standards that an employer must meet in an attempt to ensure safe and healthful working conditions for employees. 1. Agencies – 3 fed agencies have a role related to the Act: a. Occupational Safety & Health Administration (OSHA) – sets forth standards, makes inspections, end enforces the Act. b. National Institute for Occupational Safety & Health – conducts research on safety & health problems and recommends standards for OSHA to adopt. c. Occupational Safety & Health Review Commission – an independent agency that handles appeals from actions taken by OSHA. 2. Procedures and Violations. a. OSHA compliance officers may inspect facilities. b. Employee may report OSHA violations. c. Employee cannot be fired for refusing, in good faith, to work in a high-risk area if bodily harm or death might result. d. Employer must report all work-related injuries and diseases to OSHA. e. If an employee is killed in a work-related accident or 3 or more workers are hospitalized in one incident, the employer must notify OSHA within 8 hours or will be fined, and an inspection of the premises is mandatory. B. State Worker’s Compensation Laws.
1. Requirements for Receiving Worker’s Comp: a. Must have an employment relationship. b. Worker’s injury must have been “accidental.” c. Worker’s injury must have occurred on the job or in the course of employment. 2. Worker’s Comp. vs. Litigation: a. An employee’s acceptance of worker’s comp benefits bars the employee from suing for injuries caused by the employer’s negligence. b. Employer cannot raise common law defenses. c. An employee can sue the employer who intentionally injures the worker. 3. What benefits are given? Medical reimbursement, lost wages, lump sums for loss of function/life, vocational retraining, etc. C. Income Security The only one of these laws to know is HIPAA – found under “Employer-Sponsored Group Health Plans in §20-4c in eBook. IV. Employee Privacy Rights
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A. Electronic Monitoring in the Workplace. 1. Employee Privacy Protection a. Tort laws – intrusion Private and public/government employees have these protections. Courts balance the employee’s reasonable expectation of privacy vs. employer’s interests b. Statutory Protections The Electronic Communications Privacy Act of 1986 – prohibits the intentional interception of any wire or electronic communication or the intentional disclosure or use of information obtained by the interception. Exceptions: 1) Consent. 2) Business-extension exception – employer may monitor employee electronic communications in the ordinary course of business. B. Other Types of Monitoring. 1. Lie Detector Tests – Employee Polygraph Protection Act: a. Prohibits employers from: 1) requiring or causing employees or job applicants to take lie-detector tests or suggesting that they do so; 2) using, accepting, referring to, or asking about the results of lie detector tests taken by employees or applicants; and
3) taking or threatening negative employment- related action against employees or applicants based on results of or refusal to take lie detector tests. b. Exceptions: 1) 2) 3) 4) 2. Drug Testing a. Government employees – The Fourth Amendment applies. b. Private employees – the Fourth Amendment does not apply. However, some state statutes allow for it. Study Questions from the end of the chapter in the textbook to help you study: Practice and Review: answer on Canvas Issue Spotters: answers in Appendix B to textbook Business Scenarios and Case Problems: 1 Q has an answer in Appendix C to textbook; other selected Qs with answers on Canvas in file called “Answers to Helpful Chapter Questions” See also: MindTap activities for Extra Credit (accessed through the link in Canvas)