Chapter 2
If the employer desires to main EAW, what should they do?
- Incorporate written disclaimers into employee handbooks, applications, and other important documents - Ensure that disclaimers are clear and unequivocal, and presented in prominent and conspicuous manner - Ask employees to acknowledge disclaimers in writing
Limitations on Employment at Will
- Public policy exception (43 states) - Implied contract exception (38 states) - Covenant of good faith and fair dealing (11 states) - Promissory estoppel - Intentional interference with a contractual relationship
What are some examples of public policy exceptions that various courts have recognized
- Refusal to commit an illegal act - Exercising legal rights (e.g., voting) - Performing a public duty - Reporting illegal activity (whistleblowing)
key factors of implied contract
- specific statement made by an authority - employer's "course of conduct" employee handbook with exhaustive list of dischargeable offenses, clear procedures for discipline/termination, no effective disclaimer
3 Limitations/exceptions to employment at will?
1. public policy exception 2. implied contract exception 3. good faith and fair dealing
employment at will
A common law doctrine under which either party may terminate an employment relationship at any time for any reason, unless a contract specifies otherwise.
wrongful discharge
An employer's termination of an employee's employment in violation of the law or an employment contract.
Implied contract exception
An exception to the employment at-will doctrine which provides that an implied employment contract may arise from statements or promise the employer (can be written oral, or implied by practice)
when can one apply good faith and fair dealing
Applies only when there is an express or implied contract and the employer has used termination to deprive employee of an already-earned benefit
Briefly define the common law exception to employment at will of "good faith and fair dealing" (short answer)
When an employee is terminated in bad faith and it leads to a withdrawal/ending of contractual benefits
Briefly describe the public policy exception to employment at will (short answer)
When an employee is wrongfully terminated against a well-established public policy
Briefly describe the legal concept of employment-at-will. (short answer)
When an employer and/or the employee can end the working relationship at any time for any legally permissible reason or for no reason at all
Which of the following best describes the current state of employment-at-will in the us? a) Employment at will with exceptions b) Pure employment at will c) Just cause/due process d) Employment at will without limitations
a) Employment at will with exceptions
Constructive discharge
an employee's voluntary termination of his or her employment because of harsh, unreasonable employment conditions placed on the individual by the employer
Which of the following is a commonly contested issue when it comes to claims of breach of implied contract a) Verbal promises made during employment interviews b) Employee handbooks that state clear procedures for discipline/termination or an exhaustive list of dischargeable offenses c) Whether the employer has fired employees for similar offenses in the past d) Actually, no us courts recognize implied contracts
b) Employee handbooks that state clear procedures for discipline/termination or an exhaustive list of dischargeable offenses
All of the following are exceptions to at-will employment, except which one? a) Statutory exceptions, such as anti-discrimination laws b) Free enterprise exceptions c) Employment contracts containing the length of employment d) Public policy exceptions
b) Free enterprise exceptions
Which of the following common law exceptions to employment at will is the most widely adopted exception? a) Implied contract exception b) Covenant of good faith and fair dealing c) Promissory estoppel d) Public policy exception
d) Public policy exception
public policy exception
prohibits employers from firing employees engaged in activities that further the public interest
which common law protection against employment at will does NC accept
public policy exception
t/f Most workers in the US have no express, written agreement as to the terms of their employment
t
t/f employees bares the burden of showing wrongful discharge/termination
t
Good faith and fair dealing
violated when termination is undertaken in bad faith AND has the effect of depriving the employee of contractual benefits
Disclaimers
written statements that: 1. notify employees that employment is at will 2. deny that any statements in the relevant document (or elsewhere) create a contractual rights binding on the employer 3. the employer has the right to modify policies 4. place such authority with designated individuals