Old Prelim II_Outline - Business Law 385 Prelim 2 outline...

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Business Law 385 Prelim 2 outline Employment At Will / Employee Contracts At will employment o An employment agreement of unspecified duration presumed to be terminable without penalty or notice by either the employer or employee for any or no reason. Employee can quit, be hired or fired at any time for any reason. Exceptions to at-will employment o Statutory Title 7 of the Civil Rights Act of 1964 Forbids discrimination based on race, color, religion, sex or national origin (these are the protected classes… notice no sexual orientation) Exception (BFOQ) o The nature of the job requires that we violate title 7 o Race or color can never be a BFOQ (this leads to the Othello problem. Title 7 covers companies with 15 or more employees (in Fed. Court) Title 7 is enforced by the Equal Employment Opportunity Commission. (EEOC) Americans with Disabilities Act (ADA) o Prohibits discrimination against individuals with disabilities or perceived disabilities o A disability is defined as something that disables 1 or more life functions o Employers must “reasonably accommodate” disabled employees Age Discrimination Employment Act (ADEA) of 1967 – amended 1986 This added age discrimination to Title 7 This applies to people over 40 years old This law prohibited mandatory retirement by companies. 1
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National Labor Relations Act (NLRA, Wagner Act): Established the National Labor Relations Board to regulate union organizing, representation elections and unfair labor practices Gave employees the right to self-organize and collectively bargain Prohibited certain employer unfair labor practices Law applies to everyone regardless of companies’ size Judicial/common law exceptions to at will employment Wrongful discharge o Cannot fire someone for doing something they had a legal right to do such as serving on jury duty, or refusing to do something that the law prohibits i.e. lying under oath etc. Discharge not allowed when it offends some principle of public policy Implied contract Usually employer claims employment at will, and employee claims that an implied contract existed This implied contract usually comes from an employee handbook. One of the requirements was “mutual assent” The implied contract is based either on written statements in employee handbooks or oral statements made at the time of hiring leading a reasonable employee to believe that he/she had job security (breach of contract action) Employment contracts The term and pay must be included to have a real contract Written Contracts The term and pay must be in to have a real contract General rule: if the contract is for a definite term EE may be discharged only for a breach of a contractual provision or other good cause Burden of proof is on employee to show a contract; switches to employer to show good cause Employer should not put anything in writing for the employee (usually not required to and can get employer into trouble) 2
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This note was uploaded on 02/19/2009 for the course H ADM 387 taught by Professor Dsherwyn during the Fall '07 term at Cornell University (Engineering School).

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Old Prelim II_Outline - Business Law 385 Prelim 2 outline...

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