Employment Law Notes

Employment Law

Employment at Will

  • Definition: Refers to a common law doctrine allowing either party to terminate an employment relationship at any time, barring contracts which specify otherwise.
  • Current Status: Majority of U.S. workers are considered "employees at will."
  • Legal Protections: Some federal and state statutes prevent dismissal based on certain circumstances, such as discrimination laws.

Common Law Exceptions to Employment at Will

The courts recognize exceptions based on:

  • Contract Theory
  • Tort Theory
  • Public Policy
Contract Theory
  • Implied Contracts: An employment manual or handbook may imply a contract.
  • Termination Outside Terms: Employees may claim breach of contract if fired in contradiction to implied contract terms.
  • Oral Promises: Oral promises may also form part of this implied obligation.
Tort Theory
  • Wrongful Discharge: Employees can sue if termination involves abusive procedures.
  • Intentional Infliction: These lawsuits may include claims for emotional distress or defamation.
  • Fraud: Lies by an employer about job conditions can lead to fraud claims by employees.
Public Policy
  • Fundamental Policies: Termination reasons violating public policy can be actionable.
  • Whistleblowing: Protections exist for employees reporting illegal activities.

Wrongful Discharge

  • Definition: Wrongful discharge occurs when termination violates law or contract.
  • Legal Actions: Employees may sue under tort law if their privacy rights are breached during termination.

Legislative Oversight

Several laws have been created to regulate wages and working conditions:

  • Davis-Bacon Act: Mandates prevailing wages for federal construction projects.
  • Walsh-Healey Act: Requires minimum wage and overtime pay for federal contract employees.
  • Fair Labor Standards Act (FLSA): Extends wage-hour requirements to employers engaged in interstate commerce.
Child Labor Restrictions
  • Youth labor restrictions vary by age.
    • Under 14: Limited work types (e.g., delivering newspapers).
    • Ages 14-15: Non-hazardous jobs with hour restrictions.
    • Ages 16-18: Not restricted by hours, but not in hazardous occupations.
Minimum Wage
  • Definition: Minimum wage is the lowest wage acceptable by law.
  • Variation by State: Some states have higher minimum wages than federal standards.
Tipped Workers
  • Employers may use a tip credit system for minimum wage calculations but must compensate any shortfall if tips plus direct wages do not meet minimum wage.
Overtime Provisions
  • FLSA Rules: Employees must be paid 1.5 times their regular pay after 40 hours of work.
  • Exempt Employees: Includes executive, administrative staff, and certain high-earners.
WARN Act
  • Employers must provide 60 days notice before mass layoffs.
  • Coverage: Applies to employers with 100+ employees; specifies definitions of mass layoffs.
Family and Medical Leave Act (FMLA)
  • Applicable to employers with 50+ employees, allows up to 12 weeks of unpaid leave for family or medical reasons.
  • Coverage Includes: Caring for newborns, seriously ill parents, or military exigencies.
Health and Safety Oversight
  • Occupational Safety and Health Act (OSHA): Establishes safety standards that employers must follow and requires compliance auditing.
Workers' Compensation
  • Definition: State-managed program compensating workers for job-related injuries.
  • Coverage Limitations: Mean some classes of workers may be excluded.
Income Security Programs
  • Include Social Security, Medicare, and unemployment insurance, designed to provide financial security due to work-related loss.
Health Coverage and Employer Responsibilities
  • COBRA: Allows former employees to maintain health insurance temporarily after leaving a job.
  • HIPAA: Protects privacy regarding employees' health information.
Employee Privacy Rights
  • Employers often monitor employees electronically. Laws restrict how monitoring can occur, and employees are generally informed about it.
  • Drug Testing: Background drug tests are permissible; public sector tests must follow stricter constitutional guidelines.
Conclusion

Understanding employment law is crucial for both employers and employees to navigate common contractual obligations and protections against unfair treatment in the workplace.