Business And Its Legal Environment (Mgmt 246)

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Business And Its Legal Environment (Mgmt 246)

• Professor Charles H. Smith
• Employment Relationships (Chapter 14)
• Fall 2005

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At-Will Employment Rule

• Employment is generally at-will employer or
  employee may end employment relationship at any
  time for any legal reason (e.g., incompetence,
  economics or even a silly reason) termination
  based on statement(s) and/or act(s) by one or
  both parties also, employment may be terminated
  due to operation of law (e.g., completion of work
  or time stated in contract).
• Exceptions to the at-will employment rule which
  can support wrongful termination lawsuits
• Retaliatory firing in violation of public policy
• Employee fired in retaliation for refusing to do
  illegal act.
• Employee fired in retaliation for being a
  whistle-blower.
• Employer promises permanent or lifetime job
  based on contract law.
• Discrimination/sexual harassment (discussed in
  more detail in Chapter 15).

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Workers Compensation

• Applies to employees only, not independent
  contractors.
• Intended to provide injured employee with
  streamlined procedures and prompt remedy.
• Employees injury must (1) be accidental (no
  fault element) and (2) occur in course and scope
  of employment (broadly defined see 20-5 on
  page 337) if both, then workers comp is
  employees exclusive remedy against employer.
• Workers comp not applicable to intentional torts
  by employer or co-employee.
• Damages in workers comp limited to special
  damages only no general damages available.
• However, employee can sue 3rd parties in court
  for same injury, so employee can recover special
  damages vs. employer in workers comp and general
  damages vs. 3rd party in court.

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Employees Privacy Rights

• Threshold issue what is the employees
  reasonable expectation of privacy?
• Polygraph/lie detector tests and drug testing
  generally not allowed with some limited
  exceptions.
• Pre-employment screening job application and
  interview inquiries must be relevant to the job.
• Internet/e-mail use at the office.