Employment Law Chapter 1

Indentify the forms of relief provided by the Uniform Trade Secrets Act (UTSA).

-Attorney's fee's -Monetary damages

Identify true statements about hiring independent contractors.

-Employers typically avoid overtime costs. -Employers are guaranteed satisfactory performance of the job for which the contractors were hired. -Employers typically avoid spending on tools, training, or traveling.

Identify the qualfication of a valid restrictive covenant.

-It is beneficial to both the employee and the employer. -It is reasonable in scope and duration.

Identify the qualifications of a valid restrictive covenant.

-It is beneficial to both the employee and the employer. -It is reasonable in scope and duration.

Identify a true statement about the Uniform Trade Secrets Act (UTSA)

-It provides injunctive relief for misappropriation of trade secrets.

Indentify the groups that are included by most statutes in the definition of an employer.

-Labor organizations -Employment agencies -Joint labor -management committees

Identify the true statements about the costs of misclassification of a worker as an independent contractor.

-Misclassification of a worker as an independent contractor may result in other liablillties for violations of certain state and federal labor laws. -An employer is made liable for its share of Social Security (FICA) and unemployment compensation (FUTA) taxes and is subject to additional penalties whose rates depend on whether the misclassification was deliberate.

Identify the forms of relief provided by the Uniform Trade Secrets Act (UTSA)

-Monetary damages -Attorney's fees

In the context of employee benefits, which of the following standards were established by the Fair Labor Standards Act of 1938(FLSA)?

-Standards for overtime pay -Standards for minimum wages -Standards for child labor

In addition to Internal Revenue Service violations, what other laws may employers violate by misclassifying workers as independent contracters?

-The National Labor Relations Act -The Fair Labor Standards Act -The Social Security Act

Identify the criteria required by 1978 Revenue Act to claim a worker as an independent contractor

-The company has treated all those thise in positions substatially similar to that of the worker as independent contractors. -The worker must have never been treated by the business as an employee for the purpose of employment taxes for any period. -The company makes the determination based on a judical precedent or a past IRS audit of the company.

According to the U.S. Department of Labor Office of Federal Contract Compliance Programs (OFCCP), which of the following criteria define an internet applicant?

-The employer considers the individual for employment in a particular position. -The individual's expression of intrest indicates the individual posseses the basic qualifications required for the job.

When employers hire an independent contractor, they usaually spend on________________.

-compensating the contractor for the work completed

Title VII of the Civil Rights Act of 1964 and other related antidiscrimination statues only protect ______________________.

-employees from discrimination by employers

IRS 20 Factor Analysis

A list of 20 factors to which the IRS looks to determine whether someone is an employee or an independent contractor. The IRS compiled this list from the results of judgements of the courts relating to this issue.

Economic Realities Test

A test to determine whether a worker qualifies as an employee. Courts use this test to determine whether a worker is economically dependent on the business or is in business for himself or herself. To apply the test, courts look to the degree of control exerted vy the alleged employer over the worker, the worker's inverstment in the business, the permanence of the working relationship, the degree of skill required by the worker, and the extent the work is an integral part of the alleged employer's business.

Common Law Agency Test

A test used to determine employee status; though it considers several factors, the most critical is whether the employer has the right or ability to control the work

Non-compete agreement (or covenant not to compete)

An agreement by the employee not to disclose the employer's confidential information or enter into competition with the employer for a specified period of time and/or within a specified region.

Identify a situation in which an employer has vicarious liability.

An employee damaging a customer's property while demonstrating the use of his or her firm's product

The_______________-_________________ __________________ test, considered the leading test to determine employee status,emphasizes the aspect of an empoyer's right to control the work for a worker to be classified an employee.

Common-law agency

Identify a true statement according to those who believe that regulation of discrimination and other areas of employment relationship is necessary.

Economic forces do not afford absolute protection against employment discrimination on the basis of race, gender, nationality, or other proted categories.

Indentify a true statement according to those who believe that regulation of discrimination and other areas of employment relationship is necessary.

Economic forces do not afford absolute protection against employment discrimination the basis of race, gender, nationality, or other protected categories.

Under the theory of inevitable disclosure, the court looks to whether an_______________________.

Employee's knowledge is exptionally specialized or technical.

An employer is not liable if an employee causes harm to a third party while acting within the scope of his employment.

False

Kevin provides auditing services to the Global Bank as an independent contractor. Thus, the bank is responsible for paying Kevin's federal unemployment compensation (FUTA), Social Security (FICA), and the FICA excise tax.

False

Under the terms of Title VII of the Civil Rights Act of 1964 and other related anti-discrimination statutes, independent contractors can hold an employer liable for discrimination.

False

Under the theory of inevitable disclosure, employers are protected against disclosure of trade secrets only if a non-compete agreement applies.

False

Independent Contractor

Generally, a person who contracts with a principal to perform a task according to her or his own methods, and who is not under the principal's control regarding the physical details of the work.

Identify a true statement according to scholars who do not believe in the necessity of regulation of employment relationships.

Markets work to encourage employers' rational, nonbiased behavior over those personal biases.

A_______________-_________________ agreement prohibits an employee from disclosing his or her employer's confidential information or from entering into competion with the employer for a specified time and/or within a specified region.

Non-compete

________are protected from unfair labor practices by the National Labor Relations Act of 1935.

Only employees

The individual who acts based on the authority derived from the other party

The agent

Define the term "freedom to contract"

The idea of freedom to contract means that an employee may choose to work, or not to work, for any particular employer, and an employer may choose to hire, or not to hire, any particular applicant. It also means that either party may terminate the relationship at any time... with some exceptions, as we will see. As a result, most employment relationships are "at-will" agreements.

Vicarious Liability

The imposition of liability on one part for the wrongs of another. Liability may extend from an employee to the employer on this basis if the employee is acting within the scope of her or his employment at the time the liability arose

The individual from whom the other party derives authority to act.

The pricipal

Identify a true statement about a principal-agent, or employer-employee, relationship.

The principal has to use care to prevent the agent from coming to any harmduring the agency relatonship.

Inevitable Disclosure

The theory under which a court may prohibit a former employee from working for an employer's competitor if the employer can show that it is inevitable that the former employee will disclose a trade secret by virtue of her or his position.

Identify an accurate statement about contingent workers.

They are hired by an employer through a staffing firm.

Identify a true statement about the employment-related laws passed by the United States Congress.

They seek to make the power relationship between employers and employees fair and equitable.

A valid restrictive covenant is ancillary to a legitimate business relationship.

True

For a valid non-compete agreement to be enforceable, it must be supported by consideration offered in a bargained-for exchange.

True

The National Labor Relations Act of 1935 (NLRA) protects independent contractors from unfair labor practices of employers.

True

The law relating to the employment relationship is based on the traditional law called master and servant, which evolved into the law of agency.

True

According to the IRS 20-factor analysis, a person is considered an independent contractor if he or she is required to________________.

choose his or her own patteren of work freely

Leena, who works for a cookie manufacturer, is dissatisfied with her current job. She wants to work for another company called Zest Corp. According to the U.S. Department of labor office of Federal Contract Compliance Programs(OFCCP), Leena qualifies as an Internet applicant for job opportunities in Zest Corp. if she______________.

does not remove herself from the selection process prior to receiving an offer

Under the _______________ _______________ test, courts consider whether a worker is economically dependent on the business or, as a matter of econmic fact, is in business for himself of herself.

economic realities

According to the theory of___________________ ______________________, a court may prohibit a former employee from working for an employer's competitor if the employer can show that it is inevitable that the former employee will disclose a trade secret by virtue of her or his position.

inevitable disclosure

According to the IRS 20-factor analysis, a worker is considered an employee if_______________.

there is a continuing relationship between the worker and the employer

An employer is a person who____.

uses others to do his or her work