2.2 Employment At-Will

Organizations that best utilize the full potential of their employees by following these steps:

1. Define diversity 2. Establish accountability 3. Develop a diversity scorecard

When determining measures, HR professionals should keep in mind four themes:

1. Key deliverables that emphasize the role of diversity in the organization's overall strategy; 2. Utilization of diversity in the development of a high-performance work environment; 3. Ways in which the corporate culture is aligned with the organization's strategy; and 4. The efficiency of the diversity deliverables.

3 major exceptions to the at-will doctrine

1. Public-policy exception 2. Implied-contract exception 3. Implied covenant-of-good-faith exception

There are three exceptions to the at-will doctrine. Which exception to the employee at-will doctrine is only valid in a handful of states? A) Implied covenant of good faith B) Public policy C) Actual contract D) Implied contract

A) Implied covenant of good faith *The implied covenant of good faith and fair dealing exception is only valid in a handful of states.

When an employee is fired for refusing to break the law, this is an example of which type of exception to the employment at-will doctrine? A) Public policy B) Implied contract C) It is not an exception D) Implied covenant of good faith and fair dealing

A) Public policy *The public policy exception is recognized by most states and is invoked when an employee is terminated for reasons that violate a public policy interest. A public policy interest could include an employee who refuses to break the law, exercises a legal right, fulfills a statutory duty, or engages in whistle-blowing activities. The public policy exception is not a uniform doctrine and each state varies in how the rule is applied.

When an employee is fired without the manager following the procedures in the employee handbook, and there is no language in the handbook that can protect the employer from firing at will, the employee that was fired can take the employer to court based on which exception to the at-will doctrine? A) Public policy B) Implied covenant of good faith and fair dealing C) Implied contract D) There is no exception

C) Implied contract *The implied contract exception to the at-will doctrine is a legally binding agreement which is created, not through formal contract negotiation and document, but by the actions of the employer and the employee. An implied contract may be created through reliance on the employer's handbooks, policies, and practices. The handbook, coupled with established procedure, creates an implied contract upon which the employee may rely. For this reason, employers often include specific language in employee handbooks and training documents to protect the employer.

An implied contract can be created by all of the following actions, except... A) Through employer's handbooks, policies and practices B) Through non-formal contract negotiation and documentation C) Through a formal contract negotiation and documentation D) Through oral assurances to an employee

C) Through a formal contract negotiation and documentation *The implied contract exception to at-will employment is not a formal contract; however, it is a legally binding agreement that is created, not through formal contract negotiation and document, but by the actions of the employer and the employee. An example of an implied contract is when the employer gives oral assurances that the employee will have continued work as long as the employee's performance is adequate. Also, reliance on the employer's handbooks, policies, and practices may create an implied contract for employment under which the employer cannot terminate an employee without just cause.

Which is the only state that does not embrace the doctrine of employment at-will? A) Wyoming B) Utah C) Colorado D) Montana

D) Montana *Under United States law, organizations can generally hire, fire, or promote a person for any reason whatsoever. Also known as employment at-will, this doctrine remains the predominant rule governing employer-employee relationships. All states, with the exception of Montana, embrace this doctrine.

implied-contract exception

employment-at-will doctrine is a legally binding agreement, which is created not through formal contract negotiation and documentation, but by the actions of the employer and the employee. For example, an implied contract may be created between an employer and employee if the employer gives oral assurances that the employee will have continued work for satisfactory job performance.

implied covenant-of-good-faith-and-fair-dealing exception

holds that each party to the employment relationship makes an implied promise to treat the other in good faith and fairness. When that covenant is broken, the employee has a cause of action for wrongful termination. The exception for an implied covenant of good faith and fair dealing is only valid in a handful of states.

public-policy exception

recognized by most states and is invoked when an employee is terminated for reasons that violate a public-policy interest. A public-policy interest could include an employee who refuses to break the law, exercises a legal right, fulfills a statutory duty, or engages in whistle-blowing activities.