MGT 334 Employment & Labor Law Overview

Introduction to Employment & Labor Law

Overview

  • Course Code: MGT 334

  • Instructor: Dawn D Brackmann

  • Focus: Examination of Employment at Will and Employment & Labor Law in the U.S.

What are Employment & Labor Laws?

Definition

  • Employment laws are rules governing the relationship between employers and employees, ensuring fair treatment and safety in the workplace.

3 Branches of U.S. Government

Legislative

  • Function: Makes laws

  • Components:

    • Congress

    • Senate

    • House of Representatives

  • Constitution: Provides a separation of powers.

Executive

  • Function: Carries out laws

  • Components:

    • President

    • Vice President

    • Cabinet

Judicial

  • Function: Interprets laws

  • Components:

    • Supreme Court

    • Federal Courts


Legislative: Statutory Laws

Key Employment Laws

  • NLRA (1935): National Labor Relations Act

  • FLSA (1938): Fair Labor Standards Act

  • Equal Pay Act (1963): Addresses wage disparity based on gender

  • Title VII (1964): Prohibits employment discrimination

  • ADEA (1967): Age Discrimination in Employment Act

  • OSHA (1970): Occupational Safety and Health Administration – ensuring safe and healthful working conditions

  • Rehabilitation Act (1973): Prohibits discrimination on the basis of disability

  • Veteran’s Era (1974): Protects employment rights of veterans

  • ERISA (1974): Employee Retirement Income Security Act

  • Pregnancy Discrimination Act (1978): Prohibits discrimination on the basis of pregnancy

  • IRCA (1986): Immigration Reform and Control Act

  • WARN (1988): Worker Adjustment and Retraining Notification Act

  • Employee Polygraph Protection Act (1988): Limits the use of lie detector tests

  • ADA (1990): Americans with Disabilities Act

  • OWBPA (1990): Older Workers Benefit Protection Act

  • FMLA (1993): Family and Medical Leave Act

  • USERRA (1994): Uniformed Services Employment and Reemployment Rights Act

  • Workers’ Compensation Act (MI 1912): Provides compensation for employees injured at work


Judicial: Case Law

  • Case law develops from the judgments made in federal and state courts, actively influencing employment and labor laws.

Geographic Boundaries of U.S. Courts

  • Structure: U.S. Courts of Appeals, U.S. District Courts, represented through geographic divisions, ensuring jurisdictional coverage across states.

How to Brief a Case

Key Components of Case Law

  • Name of Parties: Parties involved in the case

  • Citation: Reference to the case

  • Facts: Background information

  • Procedural History: Previous litigation history

  • Issue: The legal question at issue

  • Decision: The court's ruling

  • Rationale / Analysis: Reasoning behind the decision

  • Observations: Additional comments or implications

Example Case Brief
  • Case: Brackmann v ABC Company, Inc

  • Citation: 334 ELL 45 (2025)

  • Date: Month XX, 2025


Executive: Orders & Administrative Rules

Key Agencies

  • Department of Labor (DOL): Enforces employment regulations

  • Wage & Hour Division: Oversees wage and hour laws

  • OSHA: Manages workplace safety standards

  • EEOC: Equal Employment Opportunity Commission - ensures fair treatment in hiring

  • NLRB: National Labor Relations Board - protects workers' rights to unionize


Employment Laws: Key Questions

  • Is there a law?

  • Does it apply?

  • What does it require?

Employment Law Resources

  • Federal: Regulations and guidelines at the national level

  • State (Michigan): Specific laws applicable within the state

  • SHRM: Society for Human Resource Management resources for professionals.


Labor Development in America

Historical Context

Late 1700s – Early 1800s
  • Craftsmen and journeymen recognized the value of organized efforts to resist wage reductions.

  • Initial court reactions were hostile toward these organized activities, often deeming them criminal conspiracies.

Key Case: Commonwealth v Hunt (1842)

  • Outcome:

    • The Massachusetts Supreme Court restricted the application of criminal conspiracy doctrines against labor activities.

    • Unionized workers can be indicted only if their means or ends were illegal, signaling that not all labor actions were unlawful.


Labor Movement: Post-Civil War Period (1865 – Early 1900s)

Characteristics

  • The period marked by violent strikes, as workers sought better conditions amidst high turnover due to the ease of replacing them.

  • Assembly lines contributed to increased production efficiency.

  • Strengthening labor organizing efforts leading to significant unions.

Notable Organizations
  • The Knights of Labor (1869)

  • The American Federation of Labor (AFL) (1886)

  • The Industrial Workers of the World (IWW) (1905)


Employment at Will Doctrine (1877)

Definition

  • Allows either the employee or employer to terminate the employment relationship at any time,

    • with or without notice,

    • with or without reason,

    • provided such actions are not discriminatory or otherwise illegal.

Exceptions to Employment at Will

Grounds for Exceptions
  • Discrimination:

    • Examples include protections under Title VII, ADEA, and ADA.

  • Illegal Reasons:

    • Relating to public policies, retaliation against whistleblowers, and grounds defined by specific employment contracts.


Public Policy Exception

Explanation

  • Employees are protected from termination if they exercise a significant legal right or fulfill a legal duty that is explicitly stated.

  • Courts generally prefer clear statutory provisions for such protections over alternative legal remedies offered by lawsuits for wrongful discharge.


Retaliation

Elements
  • An employee must show:

    • Engaged in a protected activity (e.g. opposing a discriminatory practice).

    • Experienced an adverse employment decision or action.

    • Established a causal link between the two events.


Whistleblowers

Definition

  • Employees who report or draw attention to unlawful or unethical practices by their employers.


Employment Contracts

Components

  • Offer: Proposal made to an individual

  • Acceptance: Agreement to the terms within the offer

  • Consideration: Benefit or compensation exchanged between the parties

Prima Facie Case
  • To establish a breach of contract claim, one must prove:

    • Existence of a valid contract

    • Breach of the contract by one party

    • Damages incurred as a result of the breach

Types of Employment Contracts
  • May include:

    • Confidentiality/NDA: Non-disclosure agreements

    • Nonsolicitation: Agreements preventing solicitation of clients or employees post-employment

    • Noncompete: Restrictions on working with competitors post-employment

    • Separation Agreements: Terms for ending an employment relationship.


Legal Responses to the Labor Movement

Historical Context

  • Judicial hostility towards union formation decreased over time; however, strikes and boycotts persisted.

  • Employers sought new legal methods to counteract labor activism, particularly in the 1880s.

Important Legal Concepts

Injunction
  • A judicial order commanding or prohibiting specific actions to prevent irreparable harm.

Yellow-Dog Contracts
  • Contracts that condition employment on an employee's agreement not to join a union; these were legally enforceable in certain jurisdictions.

Antitrust Laws
  • Sherman Antitrust Act (1890): Law preventing trade restraints and monopolization, empowering private parties to sue for remedies related to trade violations.

  • Enabled federal courts to issue injunctions against violators facilitating fair market practices.


Summary of the Post-Civil War Period

  • Continued evolution of labor rights reflecting societal changes.

  • The period set the stage for future labor relations and rights legislation leading to contemporary standards in employment law.