Business Law Chapter 26

Chapter 26: Employment and Labor Law

II. Lecture Outline

A. Introduction

1. General Approach

2. Coverage

a. Wrongful Discharge and Employment-at-Will

b. Conditions of Employment

c. Labor Law [P]

B. Wrongful Discharge

1. The Theory of Employment at Will

a. Contractual Nature of Employment

b. Rationale: Reciprocity

c. Essence Today: Presumption [1]

2. Exceptions to Employment at Will

a. Statutory

b. Judicial

c. See Table 26-1 [2]

3. Public Policy Exception

a. Tort Liability

b. Importance of the Public Policy Exception

c. Definition: termination violates an important public policy

d. Factors:

i. Public aspect of the policy violated

ii. Policy must relate to an important social interest

e. CASE: Bastible: The company terminated employees who had guns in their cars and trucks parked at work. The court refused to accept this situation as a public policy exception. Recognizing that the exception is drawn narrowly, the court reasoned the right to bear arms is subject to restrictions. [3]

4. Good Cause Exception

a. Essence: relationship has changed to good cause.

b. Factors:

i. Company policy

ii. Duration of employment

iii. Treatment

c. Contract Liability [4]

5. Ancillary Torts

a. Invasion of Privacy

b. Emotional Distress [5]

C. Conditions of Employment

1. Pay and Benefits

a. Fair Labor Standards Act

i....