Employment Employment LawLaw

Chapter 21Chapter 21

EmploymentEmployment – legal relationship – legal relationship based on a contract that calls based on a contract that calls for one individual to be paid for for one individual to be paid for working under another’s working under another’s directiondirection

Independent contractorIndependent contractor – one – one working for, but not under one’s working for, but not under one’s supervisionsupervision

Express AgreementsExpress Agreements

Oral or written employment Oral or written employment contractscontracts

Expressly describes all Expressly describes all elements of the employment elements of the employment relationshiprelationship

Ex. Sports professionals, entertainers, Ex. Sports professionals, entertainers, management, union members, etc.management, union members, etc.

Implied AgreementsImplied Agreements Hourly wage workersHourly wage workers No agreement as to length of No agreement as to length of

employmentemployment

Employment at willEmployment at will – employee – employee can be discharged or quit at any can be discharged or quit at any time for any cause due to lack of time for any cause due to lack of formal contractual agreementformal contractual agreement

State and Federal LawState and Federal Law

Minimum wage requirementsMinimum wage requirements$7.25/hr$7.25/hr$2.83/hr for tipped employees$2.83/hr for tipped employees

Discrimination lawsDiscrimination laws Child Labor LawsChild Labor Laws

TerminationTerminationBy PerformanceBy Performance

Completion of jobCompletion of job

By WillBy Will Wrongful dischargeWrongful discharge Violation of contract termsViolation of contract terms Government employee (difficult)Government employee (difficult)

By Material BreachBy Material Breach Obligations are not fulfilled (by either Obligations are not fulfilled (by either

employee or employer)employee or employer)

UnemploymentUnemployment Compensation Compensation Money paid by the Money paid by the

government or a private government or a private insurance fund to workers insurance fund to workers who have lost their jobs who have lost their jobs through no fault of their ownthrough no fault of their own

Employees that are said to have Employees that are said to have been been discharged without discharged without causecause are entitled to are entitled to unemployment compensation unemployment compensation benefitsbenefits

Employees Employees discharged for discharged for causecause are not! are not!

Employer/EmployeeEmployer/EmployeeResponsibilitiesResponsibilities

Chapter 21-2Chapter 21-2

……Owed to EmployeesOwed to Employees

1.1. Reasonable treatmentReasonable treatment

2.2. Safe working conditionsSafe working conditions

3.3. Fair labor standardsFair labor standards Minimum wageMinimum wage Maximum hoursMaximum hours Overtime compensationOvertime compensation

Maximum hours = 40hrs per Maximum hours = 40hrs per weekweek

Overtime = 1 ½ x hourly rateOvertime = 1 ½ x hourly rate

Executives, professionals, etc. Executives, professionals, etc. are an exception to this rule are an exception to this rule due to being paid by salarydue to being paid by salary

……Owed to EmployeesOwed to Employees

4.4. Payroll deductionsPayroll deductionsEmployer matches S.S. and MedicareEmployer matches S.S. and MedicareEmployer pays into Employer pays into Worker’s Worker’s

CompensationCompensation and unemployment and unemployment

5.5. Military service – jobs held for Military service – jobs held for drafted/enlisted military personsdrafted/enlisted military persons

……Owed to MinorsOwed to Minors

1.1. State LawState Law Minimum age (work permit)Minimum age (work permit) Maximum/restrict working Maximum/restrict working

hourshours

2.2. Federal Law Federal Law Fair Labor Standards ActFair Labor Standards Act

Entertainment and Entertainment and agriculture are the only two agriculture are the only two fields that may employ fields that may employ minors under the age of 14, minors under the age of 14, minimum wage often does minimum wage often does not applynot apply

……Owed to injured partiesOwed to injured parties

If an employee, acting within If an employee, acting within the the scope of employmentscope of employment, , commits a tort, the commits a tort, the EMPLOYER is liable for EMPLOYER is liable for damagesdamages

……Owed to EmployersOwed to Employers

1.1. Duty to Fulfill employment contractDuty to Fulfill employment contract

2.2. Duty of obedience – obey Duty of obedience – obey reasonable orders and rules of reasonable orders and rules of employeremployer

3.3. Duty of reasonable skill – those who Duty of reasonable skill – those who accept work possess the skill, accept work possess the skill, experience and knowledge to do itexperience and knowledge to do it

……Owed to EmployersOwed to Employers

4.4. Duty of loyalty and honesty – to look out Duty of loyalty and honesty – to look out for employers best interestfor employers best interest

5.5. Duty of reasonable performance – Duty of reasonable performance – perform job tasks with competenceperform job tasks with competence

Occasional Occasional minorminor failure to perform failure to perform is not sufficient grounds for is not sufficient grounds for dismissaldismissal