Chapter 15

Question 1

At-Will Employees

Answer 1

Employers can hire can fire at their discretion and an employee can quit at their discretion

Question 2

Ballatak v All Iowa Ag

Answer 2

Ballalatak got hurt and the company told them not to file for workers comp and that the employer would pay for their injuries. When Ballalatak ask why he cant file, the manager asks the head guy why they shouldn’t file and he gets fired for asking.
-Because he doesn’t fall under the spectrum of public policy because he was an advocate and not the actual person injured.

Question 3

Employers violate public policy if they fire or punish employees for certain actions like:

Answer 3

Refusing to commit an illegal act
Performing a public duty
Exercising a public right

Question 4

If a firm dismisses an employee in violation of public policy

Answer 4

The employee may sue for wrongful or retaliatory discharge.

Question 5

Whistleblowing

Answer 5

When members of an organization or former member tells someone else about an illegal or immoral practice.

Question 6

Title VIII of the Sarbanes-Oxley Act

Answer 6

This act forbids a publicly traded company from taking adverse employment action against an employee who in any manner assists in legal proceedings against the firm

Question 7

Title VII of thee Sarbanes-Oxley Act protects

Answer 7

Mail, wire , bank or securities fraud
violation of any federal securities law
any federal law that protects shareholders from fraud

Question 8

Exculpatory clauses in employment contracts are

Answer 8

Part of a bigger contract which relieves one party (only) from liability

Question 9

Are exculpatory clauses favored in courts?

Answer 9

Not favored by most courts and generally held to be against public policy. However, they can be upheld in non-employment circumstances

• restaurant checking a coat
• parking lot receipt
• a lease

Question 10

Non-compete Agreement

Answer 10

A contract that states an employee cannot leave and go into competition against the employer or go to work for a competitor for a certain time (generally 1 – 3 years).

Question 11

A non-compete agreement is generally legal if…..

Answer 11

• relates to a sale of a business or employment
• is necessary to protect the employer
• is for a reasonable time and geographic area

Question 12

Hertz Rental Car

Answer 12

Non-compete agreement to where she could not work for a competitor regionally for 1-2 years. Hertz sues her and Alamo . The court didn’t uphold it because her job was low level.

Question 13

Anti-Raiding Covenants

Answer 13

Employer requires employees to sign, as a condition of employment, an agreement that the employee will not recruit fellow employees for another company when/ if they leave their current place of employment.

Question 14

Are anti-raiding covenants valid everywhere ?

Answer 14

No. In NY- they are not enforced
In Cali and Texas- Enforced if limited in time and duration
Georgia, South Carolina, Virginia - Enforceable if agree to in a contract.

Question 15

Workers’ Compensation

Answer 15

require employers to pay insurance premiums for injury and death benefits to employees who are injured or killed at their place of employment in exchange for relinquishment of the employee’s right to sue their employer for the tort of negligence.

Question 16

Benefits of Workers’ Compensation

Answer 16

• Provide income and benefits to injured workers
• provide legal remedies while reducing litigation, attorneys fees
• encourage employers to keep a safe working environment

Question 17

To qualify for workers comp

Answer 17

• They suffered an injury,
• As a result of an accident or occupational disease, and
• The injury arose out of and in the course of employment.

Question 18

Tort law suits outside of workers’ compensation are generally
not allowed unless injured party can show

Answer 18

• There was an intentional tort involved;
• Injury was caused by a defective product or toxic substance;
• Injury was caused by the actions of a 3rd party.

Question 19

Workers comp premiums can be expensive for employers so they are incentivized how ?

Answer 19

Firms with the lowest # of injuries pay the lowest premiums and firms that require more dangerous activities from their employees pay higher premiums

Question 20

Are independent contractors able to qualify for workers comp?

Answer 20

No. However, the title doesn’t really mean much unless they do a control test to determine if they employees or independent contractors.

Question 21

FMLA (Family Medical Leave Act)

Answer 21

-Private employers with 50 or more employees and all public government units

Question 22

Who gets 12 weeks or unpaid job protected leave/year

Answer 22

Employers under FMLA , after childbirth or adoption, to care for a ill family member, for the employees sickness

Question 23

Who can be denied FMLA

Answer 23

“key” employees, which are the 10% highest paid, whose leave would case economic injury to the operations of the employer.