Termination

1
Termination

• Employment-at-will
• Payne v. Western and Atlantic RA Company (1884)
• The Court confirmed the right of an employer to
  hire or fire any individual for good cause, bad
  cause, or no cause at all

2
Restrictions on Employment-at-Will

• Civil Rights protections
• Employment contracts, union or individual
• Market forces
• Whistleblower statutes
• Threats of wrongful discharge suits

3
Civil Rights Restrictions

• Murphy v. American Home Products Corp (1983)
• Age discrimination used to challenge at-will
  termination

4
Violation of Public Policy

• Employees may not be fired for exercising rights
  protected by law
• Worker comp claims
• Refusing to commit perjury
• Absence for jury duty
• Voting as stockholder
• Requires clear and legal mandate re public
  policy

5
Whistleblowing

• Palmateer v. International Harvester (1981)
• Employee was wrongfully discharged after
  reporting coworkers involved in crime
• Sheets v Teddys Frosted Foods (1980)
• Employee was wrongfully discharged for insisting
  company comply with federal Food, Drug and
  Cosmetic Act

6
Expressed or Implied Promise of Employment

• Touissant v Blue Cross and Blue Shield of
  Michigan (1980)
• Employees had been wrongfully fired for no
  apparent reason, though the employer said You
  can have your job as long as you do your job.
• Employer also had written policy requiring good
  cause, warnings, and a disciplinary hearing
  before discharge

7
Good Faith and Fair Dealing

• Fortune v. National Cash Register Company (1977)
• NCR had fired long-term employee who was at
  will, but the employer sought to avoid paying
  large commission through the discharge,
  demonstrating bad faith
• Only 11 states recognize covenant-of-good-faith
  exception to employment at will

8
Tortious Conduct

• Tortious conduct violation of a duty owed to
  others variation on bad faith
• Monge v. Beebe Rubber Company (1974)
• Female employee was abusively discharged for
  refusing to date supervisor
• Now that problem would be handled under Civil
  Rights sexual harassment protection

9
Layoffs

• Firefighters Local Union 1784 v. Stotts (1984)
• Supreme Court Ruled a layoff illegal when more
  senior white employees were laid off while less
  senior black employees were retained seniority
  is a legitimate basis for discharge
• Worker Adjustment and Retraining Notification Act
• Complicated law affecting employees in facilities
  to be shut down

10
Broad practice implications

• Have written policy manual, reviewed by employee
• Use positive employee relations approach
• Know the legal context of your business
  operations
• Golden Rule do to others as you would have
  them do to you
• Keep an excellent employment attorney on retainer