Business Law Chapter 30

Business Law Chapter 30 - Business Law Chapter 30 Agency...

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Unformatted text preview: Business Law Chapter 30 Agency and Employment Law Introduction - Unless workers had an explicit employment contract, they were employees at will.- An employee at will could be fired for a good reason, a bad reason, or no reason at all. - This rule was adopted by courts because employees had the right to quit freely, the only way it could be fair to employers was to allow them freedom in hiring and firing. - However, no longer can an employer discharge an employee for any reason Employment Security National Labor Relations Act- Workers could join unions and bargain with employee on more equal terms of employment.- In order to suppress anti-union violence, Congress passed the National Labor Relations Act in 1935 it was known as the NLRA or Wagner Act and this statute: o Created the National Labor Relations Board to enforce Labor Laws o Prohibits employers from penalizing workers who engage in union activity (ie: joining a preexisting union or forming a new one) o Requires employers to bargain in good faith with unions Family and Medical Leave Act- In 1933, Congress passed the Family and Medical Leave Act (FMLA) which guarantees both men and women up to 12 weeks of UNPAID leave each year for childbirth, adoption, or medical emergencies for themselves or a family member. - An employee who takes a leave must be allowed to return to same job with same pay/benefits. - FMLA applies only to companies with 50 or more workers and to employees who have been with a company full time for 1 YEAR covers about 60% of employees. COBRA- Many companies provide health insurance for employees. But if you are fired, it meant you lost health insurance on the spot. - Congress passed Consolidated Omnibus Budget Reconciliation Act (COBRA). o This statute provides that former employees must be allowed to continue health insurance for 18 months after leaving job. However, employees must pay for it themselves for up to 102% of the cost. The extra 2% covers administrative costs. - COBRA applies to any company with 20 or more workers employees and families are covered Common Law Protections - Because employment at will has resulted in unfair results for some employees, courts have created a major exception to the rule Wrongful Discharge an employer may not fire a worker for a reason that violates basic social rights, duties, or responsibilities. - Wrongful Discharge: Violating Public Policy o The Monge Case (woman who was demoted for refusing to go out with supervisor) illustrates the concept of wrongful discharge which prohibits an employer from firing a worker for a BAD REASON. o Courts define bad reason through anything that violates public policy....
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This note was uploaded on 06/29/2011 for the course MGT 3000 taught by Professor Murrmann during the Spring '11 term at Virginia Tech.

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Business Law Chapter 30 - Business Law Chapter 30 Agency...

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