CHP 15 LAW

Ballalatak v. All Iowa Agriculture Assn.

-Ballatak worked for Hawkeye Downs as a security supervisor -2 employees injured in work-related accident -Called Ballatak and reported injury -General manager Nowers told the 3 men to meet with him; told them their medical expenses would be taken care of without filing for workers' compensation -Later on, injured men told Ballatak they were concerned they would not receive workers' compensation -Ballatak told Nowers, and stated workers had rights to benefits -Nowers fired him -Ballatak sued, saying he was fired for asking into whether the company was fulfilling its workers' compensation obligation to the injured workers -Nowers claimed he fired him for insubordination -District court dismissed suit -Ballatak appealed -HELD: District Court judgement affirmed -Usually employer may fire an at-will employee at any time -Ballatak was not fired to secure his OWN right -Fired for his attempt to ensure his employer did not violate statutory right of other employees -Iowa does not protect internal advocates for other employees -Law also does not protect employee who asserts other employees -Ballatak loses

Common Law and Statutory Exceptions for At-Will Employment

-Employers cannot fire an employee legally for: --Refusing to commit an illegal act (ex: lie at trial) --Performing a public duty (ex: jury duty) --Exercising a public right (ex: filing for workers' compensation; not uncommon) --*Whistle-blower*: occurs when an employee reports an employer's illegal act; the whistle-blowing is primarily for the public good and helping law enforcement rather than for private gain; whistleblower must go to an outside agency; if someone complains about something to the president of the company, they can fire her/him; --Contracts in violation of public policy; *exculpatory agreements*: One party promises not to sue another in case of an injury caused by a tort or some other event; the courts do not look with favor

Employee Substance Abuse Policies

-Pre-employment screening usually legal (many states say testing after job offer is extended) -Testing employees on annual basis or part of occasional physical exams usually legal (examination must be voluntary OR directly related to ability to perform the job) -Safety sensitive jobs -Random drug test (when announced as a condition of employment and when safety is an issue ex: truck drivers) -After accidents-legal b/c public safety outweighs privacy -"Reasonable suspicion"-document this WELL in employee file (announced policy of such tests and safety is an issue) -Use certified labs for drug testing results -Give all employees a copy of the company policy and keep a signed receipt from the employee -Make policy clear -Check with attorney -**anyone that could pose danger to themselves or others if under the influence (ex: train or truck)

Drug-Free Workplace Act

-Requires all companies of more than $25,000 worth of business with the federal government to certify they have "drug-free" workplace -Main requirements are that the employer: --Publish a policy statement notifying employees that the use, distribution, or possession of drugs in the workplace is prohibited --State what action will be taken against employees who violate the policy, which may range from rehab or dismissal --Establish a drug-free awareness program and make an effort to make it work -Notify employees that, as a condition of employment, the employer must be notified of any drug-related convictions that occur, and the employer must notify the federal government of these

Zambelli Fireworks Manufacturing Co. vs. Wood

-Zambelli is one of the oldest and largest firework companies in the US -Wood was hired by Zambelli to work as a pyrotechnician and choreographer -He learned of trade secrets, client lists, pricings, costs, and contract terms -Zambelli paid for Wood to become a certified trainer for the Pyrotechnic Guild International -Noncompete agreement signed said if Wood left Zambelli he could not work for a competitor for 2 years; Would not solicit former clients, would not disclose or use trade secrets; if there was litigation and Zambelli prevailed, Wood would pay all legal fees and costs -Wood was hired by Pyrotecnico, a major competitor -Wood resigned from Zambelli and went with Pyrotecnico -Zambelli sued to enforce covenant not to compete -District Court held: Agreement was enforceable under PA law -Wood and Pyrotecnico appealed -HELD: District Court decision affirmed -Zambelli had a legitimate business interest in its goodwill and Wood's specialized training and skills -Agreements are upheld when restrictions are reasonable to protect employer's interests (Zambelli's business)

Substance Abuse

-commonly most abused is alcohol -8% of workers are serious alcohol abusers -Another 3-8% of adults abuse or addicted to illegal or improperly dispensed drugs -If you combine these two, 1 in 8 of workers have substance abuse problem

At-Will Employment

-free market concept -Employers: can hire and fire who they want -Employees: May work at-will or quit when they want -Contractual agreements can limit employers' ability to dismiss an employee without consequences -there are *public policy exceptions* that have risen over the years from statutes and common law rules

Omnibus Transportation Employee Testing Act

-requires employers who operate aircraft, public transportation, or commercial motor vehicles to test their employees for use of alcohol and illegal drugs -Includes: --Pre-employment testing --Random testing during employment --Testing after accident -Confidentiality of test results is maintained and lab procedures used are highly accurate

Consequences of Substance Abuse

-substance abuse directly affects employers because it can mean reduced productivity and higher medical insurance costs -total economic cost of substance abuse is more than $250 billion per year; the cost to employers is about $100 billion a year -Safety: workers under the influence of alcohol or other drugs are 3.6 times more likely to be injured or to injure another -Those who abuse alcohol, even if not under the influence-70% greater chance of on-the-job injury -National Transportation Safety Board found that alcohol or other drug-impaired workers caused many Railroad accidents -Alcohol or other drugs are a factor in 1/3 of all accidents involving truck drivers killed in accidents -Insurance costs are about double for families with an alcoholic

Non-competition Agreements

-the employee cannot leave and go into competition against the employer or go to work for a competitor for a certain time, usually 1 to 3 years -Different states differ: --Some allow them absolutely --Some states allow court to imply reasonable terms in order to save the covenant in part -Other states will eliminate these agreements entirely -Others common law governs, allowing if restraints are reasonable in time and extent of coverage -Other states, like CA, say that almost every contract that restrains anyone from lawful business is void -Employers must pay attention to individual state law in this area

Wrongful discharge or retaliatory discharge

-when a firm dismisses an employee in violation of a public policy exception to the right of at-will discharge, the employee may sue; these cases not easy to win