Exam 3

Role of HR in Employee Discipline:

- To develop (with top mgt approval) disciplinary policies and procedures - To ensure that policies and action taken comply with labor agreements and current law

Role of Supervisor in Employee Discipline

- To prevent and correct disciplinary problems - To observe and document employee behavior and performance - To apply disciplinary action and monitor performance improvement

Criteria for Compensable Factors

-Acceptable (to employees, management, union) -Important to the job -They help to distinguish among jobs (jobs must vary on the CF) -Can be objectively measured -Look at mission statement for ideas

Wage Compression

A lower skill/level job is paid at a rate similar to a higher skill/level job

Consumer Price Index (CPI)

A measure of the average change in prices over time in a fixed "market basket" of goods and services

Point System

A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it. Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job.

Determining the Compensation Structure: Rate Ranges

A range of rates for each pay grade that may be the same for each grade or proportionately greater for each successive grade.

Agency Shop

BU employees must pay membership dues to the union (usually a reduced rate) but are not required to join the union

Basic Standards of Discipline:

Basic Standards of Discipline 1. Due Process 2. Communication of rules 3. Documentation of facts 4. Right to appeal disciplinary action 5. Consistent response to rule violation

Flexible Benefits Plans (Cafeteria Plans)

Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs.

Employee advantages to a flexible benefits package:

Benefits are better matched to their individual needs (important in a diversified workforce). Employees gain a greater understanding of the benefits offered to them and the costs incurred.

Benefits continuation

Benefits continuation - employees on leave retain their benefits

California Family Rights Act (2004)

Both provide 12 weeks leave for the 4 reasons we discussed under FMLA -Grants 6 weeks (of the 12 FMLA) as paid -100% employee funded

Egalitarian Perspective

Egalitarian perspective - pay everyone the same wage e.g., Ben and Jerry's compensation structure as a start up Also referred to as "averagism"

Open Shop

Employees are not required to join a union as a condition of employment

Employer advantages to a flexible benefits package:

Employer advantages: Maximize the psychological value of their benefits program by paying only for highly desired benefits. Use benefits as a competitive advantage in the recruiting and retention of employees. Disadvantage: high costs

Health Insurance

Increasing costs of health insurance for organizations

Management Tools

Internal equity -> job evaluation - formal evaluation to determine the relative worth of jobs in an organization External equity -> wage and salary surveys - monitoring what other organizations pay for similar jobs Individual equity -> performance-based pay - tying some or all of pay to level of output

Which equity perceptions would be most critical for attraction, retention and motivation?

Internal equity ?? Retention External equity ?? Attraction Individual equity ?? Motivation

Job restoration

Job restoration - employees have the right to return to their job or an "equivalent job."

Job Classification

Jobs are classified and grouped according to a series of predetermined wage grades. Successive grades require increasing amounts of job responsibility, skill, knowledge, ability, or other factors selected to compare jobs.

Defensive lockout

Lock out employees for fear of property damage Employers can hire temporary replacements and a small number of permanent replacements

Offensive lockout

Lock out employees to put pressure on the union to make concessions in bargaining Employers can hire temporary replacements only

Lockout

Management's primary weapon against union's ability to strike

1. Minimum wage provision

Mandated a federal minimum wage

Wrongful discharge

Wrongful discharge - discharge for reasons that are either illegal or inappropriate Wrongful discharge lawsuits challenge employer's rights under EAW principle to unilaterally discharge employees

Implied Contract

Wrongful discharge contrary to an employer's oral or written promises of continued employment. Examples: verbal statements, employee handbooks

Job Analysis - job content Job Evaluation - job value

-

5. Consistent Response to Rule Violation

- Doesn't need to be identical responses, circumstances may justify different responses to same misconduct

1. Due Process

- Ees right to be heard, fair investigation - If no due process, then discipline can be overturned

3. Documentation of Facts

- Proper documentation of misconduct prior to disciplining ee

2. Communication of Rules

- Publish widely, remind, signed statements - Unenforced rules cannot be enforced without notification

Taft-Hartley Act (1947)

-Amendment to Wagner (NLRA) twelve years after Wagner was passed -Problem: Wagner Act helped unions TOO much and caused them to be too powerful relative to ers -Pro-Management legislation -Established Union ULPs (amended Section 8 of Wagner) -Once a year limit on certification elections -Closed shop illegal - (where it would be necessary to be a union member to be in the applicant pool to get a job) -Gave states permission to pass Right-to-Work Laws - (RTW essentially prohibits mandatory union membership in a state)

Good Faith Bargaining - mandated by the NLRA

-Both parties must agree to meet at a reasonable time and place, -Submit realistic proposals, -Offer realistic counterproposals -Both parties must bargain over MANDATORY issues (wages, hours, and working conditions)

The Wage Mix- Internal Factors

-Compensation Strategy -Worth of a job -Relative worth of an employee -Ability to pay

Unemployment Insurance

-Established by the SSA of 1935 -Tax paid by employer only (based on the employer's "experience rating") -Provides temp income for people involuntarily unemployed -Benefit is based on an employee's recent earnings. -Involuntarily unemployed workers are eligible for up to 26 weeks of unemployment benefits. -Unemployed workers are required to seek "suitable employment."

Management Bargaining Power

-Hiring replacement workers -Continuing operations staffed by management -Locking out employees

The Wage Mix- External Factors

-Labor market conditions (ability and quality of potential employees) -Product Market Competitors' Wage Rates -Area wage rates -Legal requirements -Cost of living -Collective bargaining

Railway Labor Act (RLA) of 1926

-Purpose of the act was to avoid service interruptions resulting from disputes between railroads and their operating unions. -First major piece of LR legislation -Covered employees in the railway industry (and now airlines) -Established mandatory mediation during labor disputes via the National Mediation Board -Instituted a 30 day cooling off period (ordered by the President of the US) during bargaining disputes -Established National Railway Adjustment Board as enforcement agency

Ways to reduce Wage Compression:

-Reward high performance and merit-worthy employees with large pay increases -Prepare high-performing employees for promotions to jobs with higher salary levels -Provide equity adjustments for employees hardest hit by pay compression

Wagner Act (National Labor Relations Act) of 1935

-The most important piece of LR legislation -Covers most all private sector organizations (besides airlines and railway industries) -Protects employee rights to organize and bargain collectively through representatives of their choice. -Created the National Labor Relations Board (NLRB) to govern labor relations in the United States and enforce labor law.

Collective Bargaining

-Where a union is in place, the organization must negotiate the wage rates with the union (cannot unilaterally decide compensation issues on own). -Unions bargain for real wage increases that raise the standard of living for their members. -"Real wages" are increases larger than rises in the consumer price index; that is, the real earning power of wages.

Differences Between RLA and Wagner (NLRA)

1. Coverage RLA - railway & airlines NLRA - all other private employers 2. Certification elections RLA - Union must win majority of eligible voters (mail-in ballot) NLRA - Union needs majority of those who voted (secret ballot) 3. Strike/Lockout RLA - Union can't strike and er can't lock out until all impasse resolution procedures have been expended (mediation, presidential 30 day cooling off period) NLRA - once contract expires everything is fair game

Employment Rights can be stated in 3 ways:

1. Employment contract (8% of workforce) 2. Collective Bargaining Agreements (12% of workforce) 3. Employment-at-will (EAW; 80% of workforce)

**ON FINAL: An employee requests FMLA leave for a serious health condition in January 2015. The employee has taken 8 weeks of FMLA leave during the 12 months prior to this request (OCT, NOV, DEC 2014).

1. How much FLMA leave is the employee entitled to if the 12 month period is determined by the calendar year? 12 more weeks beginning Jan. 1 2. How much leave is the employee entitled to under the rolling 12 month method? Only 4 wks left

Three primary job evaluation methods:

1. Job ranking - rank the value of jobs from highest to lowest 2. Job classification - Classifying jobs into categories so they can be benchmarked internally and externally 3. Point method - awarding points to each job based on the job's contribution to organizational objectives

Bargaining Subjects

1. Mandatory subjects 2. Permissive subjects 3. Illegal subjects

Legally Mandated Benefits

1. Social Security Insurance 2. Unemployment Insurance 3. Workers Compensation Insurance 4. Family and Medical Leave 5. Health Insurance* * For employers with 50+ employees

Typical Steps in the Organizing Process

1. Union/employee contact - - Who typically initiates contact? 2. Initial Organizational Meeting - meeting to determine fit with union - assess interest level of employees 3. Formation of In-house Organizing Committee - Solicit employees to take on leadership role in the organization process - Main goal: getting authorization cards signed

Exceptions to EAW

1. Violations of Public Policy 2. Implied Contract 3. Implied Covenant/ Lack of Good Faith & Fair Dealing

Determining the FMLA 12-month period

1. calendar year (Jan 1 - Dec 31) 2. fixed year (either fiscal year or employee anniversary date) 3. 12 months forward from date of first FMLA leave 4. Rolling 12 month period - measured from today back 12 months. No reset button. If you request it then they go back and see how much FMLA time you've taken in the past 12 months. If you've taken 4 wks already your eligible for 8 more wks.

Individuals who may NOT collect unemployment:

1. individuals who quit voluntarily 2. individuals discharged for "gross misconduct" 3. those who have refused an offer of suitable work 4. employees on strike 5. self-employed individuals

Increase in Benefits Cost

1929 - It wasn't standard practice to pay benefits until WWII when employers were put under wage/price freezes and could not increase employees pay (to control inflation during the war)

Typical Steps in the Organizing Process (Con't)

4. Election Petition and Voting Preparation - Need 30% employees targeted for representation (called the "bargaining unit") to sign the cards in order to petition NLRB to hold a certification election - No certification election for same group of ees has taken place in the past 12 months 5. Certification Election - Once the NLRB approves the petition to hold an election, a secret ballot election on the ER's property takes place within 7 days - Simple majority determines the outcome (50% + 1 vote) under Wagner Act (NLRA)

Determining the Compensation Structure: Wage Curve

A curve in a scatter gram representing the relationship between relative worth of jobs and wage rates.

What % on average do benefits make up in terms of total compensation?

About 30%

Advantages and Disadvantages to Job Classification:

Advantages: -Relatively easy to develop -Inexpensive -Easier for people to slot jobs into grades than to rank order them Disadvantage" -Grade descriptions must be broad enough to fit multiple jobs, yet they have to be specific enough that jobs don't appear to fit into more than one grade

Pay Ranges

Allow for variation in pay within grades (within max and min) Differences such as tenure, education, performance, when learning the job, etc.

Employer Use of Social Media Law (California)

Also referred to as the "Password Protection Law" Went into effect Jan. 1, 2013

Landrum-Griffin Act of 1959

Amendment to Wagner (NLRA) twelve years after Taft-Hartley amendment was passed in response to union corruption of the 1950s Govt. stepped in and started to regulate union business/internal union affairs 1. Mandated that unions must file yearly financial statements with the Dept of Labor (external auditor) 2. Established "Bill of Rights of Union Members" - Members may... 1. participate in union business 2. vote in union elections 3. run for union offices 4. Sue the union

Equal Pay Act (1963)

Amendment to the FLSA This law is enforced by the EEOC Law states that it is illegal to discriminate in terms of compensation based on gender for "equal work" where equal work is defined as work requiring the same skill, effort, responsibility, and working conditions

Constructive Discharge

An employee voluntarily terminates his or her employment because of harsh, unreasonable employment conditions placed on the individual by the employer

Pay Equity

An employee's perception that compensation received is equal to the value of the work performed. Fairness is a relative concept

Family and Medical Leave (FMLA; 1994)

An employer must grant an eligible employee up to 12 workweeks of unpaid leave in a 12-month period

Rights Arbitration

Another type of arbitration occurs during contract administration -Occurs when a third party neutral is asked to interpret the meaning of the contract and rule on employee grievances -Extremely common in both public and private sectors

Union Shop

BU employee must join the union within 30 days of employment or be terminated

Authorization Card

Card signed by employees indicating their interest in being represented by a union

Closed Shop

Closed shop - must be in the union to be employed

Management and Union Power in Collective Bargaining:

Collective Bargaining Power Union Bargaining Power Management Bargaining Power

Compa ratio

Compa-ratio < 1 Managers paying less than the intended pay policy. Valid reasons may be... --Majority of ees are new or recent hires --Most ees are poor performers --Ees are promoted so rapidly that few are in a range long enough to get to the high end Compa-ratio > 1 Managers paying more than the intended pay policy. Valid reasons may be... --Majority of ees with high seniority, high performance, low turnover, few new hires, low promotion rates

Individual Equity

Comparisons with others inside the organization in the same job

Which plan would be easier for ER to forecast costs?

Defined benefit or defined contribution? Contribution plan Defined Benefit plan is difficult because you cant ask where EE is retiring

Which plan provides a benefit that is more easily communicated to the employee?

Defined benefit- what they will get out of retirement

Primary boycott

Direct appeal to consumers not to purchase "struck goods" - i.e., don't do business with company the union is currently having a dispute with - Legal or illegal?

Employment Rights can be stated in three ways:

Employment contract (8% of workforce) Executives, senior management, highly skilled/professional employees, athletes/coaches terms of employment are specified (start/stop dates; compensation, severance) Collective Bargaining Agreements (12% of workforce) Just cause clause will specify reasons for termination Employment-at-will (EAW; 80% of workforce) EAW clause acts to limit employees' rights to their jobs

Fair Labor Standards Act (FLSA; 1938)

Enforced by the Department of Labor 4 primary provisions: (listed below)

National Labor Relations Board (NLRB)

Enforcement agency for all labor law besides Railway Labor Act - (like the EEOC is to EEO law) Primary duties: 1. Investigate/remedy ULP charges 2. Conduct secret ballot union certification elections Courts enforce NLRB orders and hear appeals to NLRB orders (Supreme Court tends to uphold NLRB orders)

4. Equal Rights provision

Equal Pay Act (1963)

Progressive discipline

Example: Verbal warning, written warning, suspension (without pay), termination

OT- Exempt employee

Exempt employee - NOT covered by the OT provision and therefore not eligible for being paid OT (generally all managers, supervisors, and white-collar professional employees)

Workers' Compensation Insurance

Federal- or state-mandated insurance (funded by an employer payroll tax) -Insurance defrays the loss of income and cost of treatment due to work-related injuries or illness. -Employer paid premium (ee doesn't contribute) -Insurance rate the employer pays based on: -The risk of injury or illness for an occupation -Each state's level of benefits for injuries sustained by employees varies. -The company's frequency and severity of employee injuries (the company's experience rating).

3. Child Labor Provision

Forbids children under 16 to work except for parent among other issues

Bargaining Unit

Group of two or more jobs whose employees share common employment interests and may reasonably be grouped together for purposes of collective bargaining

Job Grades

Groupings of similarly worth jobs that get paid the same

Determining the Compensation Structure: Pay Grades

Groups of jobs within a particular class that are paid the same rate.

Employee Rights

Guarantees of fair treatment from employers -Employment and job protection rights -Privacy rights

Interest Arbitration

Having a third party neutral make the final decision for the two parties in contract negotiation -Primarily used in public sector labor disputes when striking is prohibited or restricted -Very powerful position to be the ultimate decision maker

Duty of Fair Representation

If Union wins, it becomes the exclusive bargaining agent of all ees in the bargaining unit via the Duty of Fair Representation: The union has the legal right and responsibility to represent ALL bargaining unit members equally, regardless of whether employees in the bargaining unit join the union or not.

Secondary boycott

Illegal (as noted by Taft Hartley) - Asking consumers not to buy goods/services from a neutral employer not involved in the labor dispute

Wildcat Strike

Impromptu strike unauthorized by union during an active collective bargaining agreement (in defiance of union) Typically there is a no-strike clause in the CBA (or a grievance procedure which is a de facto no-strike clause) Management can fire employees who engage in a wildcat strike and may sue the union for damages

Health Care Legislation- Patient Protection and Affordable Care Act (2010)

In 2014, employers with 50+ employees will pay a "shared responsibility fee" (i.e., a penalty) if they do not offer their employees (who work 30+ hours per week) health care Health plans offered must cover EEs' children up to age 26 No copays or deductibles for preventive care No lifetime dollar limits

Discretionary (Voluntary) Benefits

Includes all other possible benefits besides the five discussed so far We'll focus on the following two categories of voluntary benefits: 1. Pension/retirement funds 2. Payment for time not worked

Equity Theory

Motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve. Individuals form a ratio of their inputs to outcomes in their job and then compare the value of that ratio with the value of the ratio for other individuals in similar jobs. My input/outcomes < = > Other's input/outcomes

OT- Nonexempt employee

Nonexempt employee - IS covered by the OT provision and must be paid 1 ½ for all hours worked over 40 in a week.

Postive punishment

Nothing punitive until they need to be terminated Discipline that focuses employee taking responsibility for correcting the problem.

Job Ranking

Oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth. Disadvantage: -Does not provide a precise measure of each job's worth -Doesn't allow for jobs of equal worth -Middle range jobs are difficult to differentiate

Collecting Survey Data (External Equity)

Outside Sources of Data Bureau of Labor Statistics (BLS) www.bls.gov Online survey data Advantage Govt data is free Disadvantage Data is usually dated Can be useful as a general ballpark estimate

Internal Equity

Pay comparisons with others inside the organization

External Equity

Pay comparisons with others outside the organization

Equity Perspective

Pay people based on their efforts (input/output considerations) e.g., performance-based pay

Drug-Free Workplace Act (1988); California (1990)

Permits drug testing of ee and applicants of federal/CA state contractors as a condition of continued employment

Federal Regulation of Pension Plans- Employee Retirement Income Security Act (ERISA).

Private pension plans are subject to ERISA regulations; provides standards and controls for pension plans: 1. Communication standard 2. Minimum funding standards 3. Vesting standards

Workers' Adjustment Retraining and Notification Act (WARN)

Requires ERs with 100+ EEs to give EEs and the community (including unions, local officials) 60 days notice of any closure or layoff affecting 50+ FTEs Exemption - unforseeable circumstances

Health Care Legislation- COBRA - Consolidated Omnibus Budget Reconciliation Act (1986)

Requires employers to continue health care coverage to employees and their dependents upon termination of employment for a specified period of time (18 to 36 months) Gives former employee and family insurance at a group rate Former employee's pay 103% of cost of group rate the business is charged by its insurance provider Why was this law passed? Primarily because of the high rate of uninsured individuals back in the day.

Maintenance of Membership Shop

Requires that ees who voluntarily join the union remain union members throughout the life of the collective bargaining agreement

2. Overtime (OT) provision

Requires that employers pay their employees time and a half their regular pay for hours worked in excess of 40 per week Labeled employees as being either "exempt" or "nonexempt" in terms of who is eligible for overtime pay

Which one of these goals do you think organizations do the best at achieving?

Retention and motivation

Employee Discipline

Role of HR and immediate supervisor Basic standards of discipline Approaches to discipline: -Progressive discipline -Positive discipline- nothing punitive until they need to be terminated

Social Security

Social security is funded by contributions by both the ER and the EE 6.20% tax of annual earnings on first $127,200 - provides income for retirees -In order to be eligible to collect retirement income, you must have worked 40 quarters (10 years)

Socialistic Perspective

Socialistic perspective - paying workers based on their social need. e.g., increasing the pay of a worker because s/he has multiple dependents

Union Bargaining Power

Strikes, pickets, and boycotts

Permissive subjects

Subjects that either side is free to bring up, but the other side is not mandated to negotiate over it (both sides must agree to let the subject come on to the table) Anything other than wages, hours, and working conditions

-Mandatory subjects

Subjects that if one party wants to bring up in negotiations, the other party must negotiate over it Subjects dealing with wages, hours, and working conditions

Illegal subjects

Subjects that violate law and would be a ULP to try to get onto the negotiation table Asking ER to discriminate against women, asking for a closed shop provision in the CBA, featherbedding, etc.

1. Defined-benefit plan

The amount an employee is to receive upon retirement is specifically stated up front Employer is making a promise to its employees that it will pay you X dollars a month This benefit is typically determined by a formula based on factors such as: Years of service Earnings your last year of employment Age upon retiring (see example handout)

2. Defined-contribution plan

The amount an employer and employee contributes to the pension fund is specified. The amount the employee will receive upon retirement will depend on the amount of money that has accumulated in that ee's retirement fund (and how well the fund was invested by the ee)

Collective Bargaining Power

The power of labor and management to achieve their goals through economic, social, or political influence.

Collective Bargaining Process

The process of negotiating a labor agreement, including the use of economic pressures (strikes, pickets, boycotts, lockouts) by both parties. Process starts approx 60 days before contract expires

Employment at will (EAW)

The right of an employer to fire an employee without giving a reason and the right of an employee to quit when he or she chooses. Don't even need 2 wks notice, could just show up EAW is governed by state laws and varies by state

Taft-Hartley amendment to Section 7 guarantees:

The right to refrain from joining or participating in collective bargaining activities -- except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment (in some states it is ok to mandate union membership) - What is this state legislation called?

Job Evaluation

The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.

Pension/retirement funds

There are now more Americans age 65 and older than at any other time in U.S. history. Census data show there were 40.3 million people age 65 and older in 2010. Types of pension plans: 1. Defined-benefit plan 2. Defined-contribution plan

Mediation

Third party neutral comes in and acts as a facilitator between the two parties Very commonly used in labor disputes (Federal Mediation and Conciliation Service—govt agency that supplies mediators)

Wagner Act (NLRA) - Section 8: Employer Unfair Labor Practices (ULPs)

This section of the Wagner Act outlawed employer practices as illegal: 1. Interference with employees' rights to unionize 2. Domination/support of a union (e.g., company union or supporting a particular union over another) 3. Discrimination against union members 4. Discharge of union members because they file a ULP charge 5. Refusal to bargain in good faith with the union

Differences between DB and DC Plans

Who assumes the risk (ER or EE)? Defined benefit plan? ER Defined contribution plan? EE

Taft-Hartley - Unfair Union Labor Practices (ULPs)

This section outlawed the following UNION practices as illegal: 1. Coercion of ees to join unions 2. Asking employers to discriminate against ees based on union status 3. Charging excessive or discriminatory fees 4. Specified prohibited activities - e.g., secondary boycotts, featherbedding 5. Refusing to bargain in good faith with the employer

Discharge as a Result of Retaliation

Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and other employment laws prohibit employers from retaliating against employees when exercising their rights under these statutes.

Primary Goals of Compensation

To motivate people to join the organization (attraction) To motivate people to stay with the organization (retention) To motivate people to perform at high levels (motivation)

Total Compensation =

Total Compensation = Salary + Benefits + Incentives + Nonmonetary rewards

Mandatory vs. Permissive Distinction

Two questions to ask: 1. Does the issue effect the terms and conditions of employment of current BU members? Current BU members -> mandatory Anyone else -> permissive 2. Does the issue relate to management's decision making authority or to the impact of the decision on employees? Mgt authority -> permissive Impact of decision on employees -> mandatory

Union Security Agreements (98% of CBAs) (Types of shops)

Union security agreements (shop clauses) attempt to make membership in the union a condition of employment

Wage Inversion

Wage inversion - a higher skill job is paid less than a lower skill job

Wagner Act (NLRA) - Section 7 Rights

Wagner Act Section 7 of the Act guarantees these rights: The right to form, join, or assist labor organizations and bargain collectively. The right to engage in collective bargaining activities (strikes, pickets, etc.)

Ways a Union can be recognized

Win a certification election Voluntary recognition NLRB grants the union recognition

Sympathy Strike

Work stoppage by a group of ees in support of their co-workers who are currently in a negotiation impasse with their employer (both groups of employees work for the same ER) - Legal or illegal? Pilots for American Airlines go on strike, flight attendants decide not to cross the picket line to support their co-workers

Secondary Strike

Work stoppage by ees who have no dispute with their employer but are striking to support another union - Legal or Illegal?

ULP Strike

Work stoppage precipitated by an ER ULP or an economic strike that is extended because of an employer ULP If employer committed a ULP, employees can only be temporarily replaced during ULP strike (they have immediate reinstatement rights)

Economic Strike

Work stoppage to put pressure on management during negotiations once the contract expires - Employers may replace strikers on a permanent or temporary basis - Can't fire striking employees but you can replace them - Strikers have "recall rights" to their jobs once their jobs come open if they were permanently replaced

Benefits Mix

What should the overall benefits package look like? Look at the labor market to determine the mix

Implied Covenant/ Lack of Good Faith & Fair Dealing

Wrongful discharge for a lack of fair dealing on part of employer/employer acted in bad faith. Examples: discharging an employee the day before eligible for retirement benefits *Only 6 states recognize all 3 exceptions. CA is one of them. Most states recognize #1

-Violations of Public Policy

Wrongful discharge of an employee by an employer for refusal to commit an act that to violates the law. Examples: whistle-blowing illegal conduct, refusing to engage in illegal activity on behalf of employer, attending jury duty