Chapter 21

Employment may be terminated:

At any time, for any reason, unless there is a contract in place specifying terms and duration of employment -Historically, termination of employee for any reason is widely accepted

Employment at will doctrine provides that employment is:

At the will of employer or employee

Employment Disclaimers

At-will status should be noted in employee handbook

Fairness: The ultimate test

Bad faith and inexplicable terminations are subject to court scrutiny.

Public policy originates with:

Legislative enactments

Hostile attitude

Good cause termination

Poor work performance

Good cause termination

Improper billing practice

Good cause termination -The physician's improper billing procedures gave the company right to fire him

Employment at Will

Good law, but highly litigated

Job Decription

Is **NOT** a contract

Public Policy

Provides that employees may not be terminated for reasons contrary to public policy -Employment contract -Covenant of good faith and fair dealing

Public Policy Issues:

-Age, race, color, religion, sex, national origin, pregnancy (CRA of '64) -Filing safety violation complaint (similar to whistle blower) -Union membership -Whistle blowing--reveals wrongdoing to public entity -reporting--Patient Abuse (Elder and Child)

Exceptions to Employment at Will:

-Contracts -Public Policy -Whistleblower

Effective hiring practices

-Preventing negligent hiring (clear policies regarding hiring, discipline, and firing, be mindful of language, hire good people) -Job description: Not an Employment contract -Employee references are valuable

Violation of non-smoking policy

A for-cause termination

Termination for cause

A termination for cause only clause in an employment contract is binding -Employee is to be hired until retirement age; could be terminated for cause only

Termination and Damages

An employee who is wrongly discharged may maintain a cause of action in contract or tort, or both

Termination

Decision to terminate employee should be reviewed carefully by a member of management familiar with issues of wrongful discharge

Unemployment compentsation

Denial for resignation and termination for cause -voluntary termination because of a change in working hours was not considered sufficient cause to grant employment benefits

Clear communications

Employers must communicate clearly to prospective employees that their employment is at will and can be terminated at any time by either party

Termination and financial necessity

Not a breach of employment contract

Retaliatory Discharge

Pharmacy tech state a cause of action for wrongful discharge and intentional infliction of emotional distress. Technician made a good faith report of hospital's noncompliance with the drug inventory and documentation requirements

Alcoholism

Termination not discriminatory -Physician discharged on BFOQ

Punitive damages

Tort law only (clear and convincing evidence)

Tort

wrongful discharge

contract

wrongful discharge