LER 437: Final - Employment Law
Terms in this set (11)
Comerford v International Harvester (1938)
- Boss solicits employee's wife for "affection"
- Boss's advances are rejected
- Boss asks employee to help in seducing employee's wife
- Employee refuses and is fired
History of EAW
- First appeared in Horace C. Wood's Master and Servant (1877)
------Summarizing employment law throughout the U.S.
------"With us the rule is inflexible, that a general or indefinite hiring is prima facie a hiring at will"
There's only one little problem......Wood made it up.
Exceptions to EAW
1. Statutory Exceptions
2. Common Law Exceptions
- National Labor Relations Act (1935)
-----Protects employees' rights to collective action
-----Jones v. Laughlin Steel (1937) expanded U.S. Constitution's commerce clause
- Fair Labor Standards Act (1938)
-----Established minimum wage and overtime pay requirements
- Civil Rights Act of 1964
------Prohibits discrimination based on race, color, sex, religion, or national origin
Common Law Exceptions
- Violation of Public Policy
- Implied Contract
- Covenant of good faith and fair dealing
Public Policy Exception
- An employee cannot be discharged for a reason that is against an explicit, well-established public policy
- Most widely accepted
Implied Contract Exception
- Applied when an implied contract is formed between an employer and employee
- Accepted in 37 states
- No formal contract exists, but a contract can be implied by:
- Rather than narrowly prohibiting terminations based on public policy or an implied contract, this exception— at its broadest—reads a covenant of good faith and fair dealing into every employment relationship.
- Similar to an implied "just cause" standard
- Recognized in 11 states
EAW Debates: Reasons against Exceptions
- Equity concerns (property rights)
- Economic efficiency
-------If employees wanted protections, they would simply bargain for them!
- Legislators should make laws, not judges
- Fear that it would lead to uncertainty in the application of the law
- Increase in filings
---"flooded with claims that judicial discretion be substituted for employer discretion."
EAW Debates: Reasons forExceptions
- Market failures
- Inequality of bargaining power
--- Departure from neoclassical economic thinking
- Equity Concerns
If firms can fire people for whatever reason they want, why don't we hear about it more?
- Availability of information bias!
- Some firms care about
--- Employee loyalty
--- General Human Resource Management
- Just like employees, employers are ignorant of the law