Chapter 16 Employment Law

Question 1

Creating an Agency Relationship

Answer 1

Manifestation (outward showing) of an agreement that one party (agent) will act for the benefit of another (principal) and at the other’s (principal’s) direction and control.
A) Agreement (Consent).
B) Direction and Control.

Question 2

Agreement (Consent)

Answer 2

Mere agreement is enough, less than a contract!

Question 3

Direction and Control

Answer 3

FedEx Employee Case.

Question 4

FedEx Employee Case

Answer 4

The Court said: The FedEx employee WASN’T an agent of the government as he did not act under their direction and control of the government, he acted as a helpful citizen or something else. Direction and control was not proven here!

Question 5

Kavanaugh vs. BU

Answer 5

Is a student athlete an “agent” of the University for purposes of imposing vicarious liability? The Court said: Agents need to act for the benefits of the principal! Students are customers of their school and not agents!

Question 6

Fiduciary Relationship

Answer 6

High trust, special obligations, agent must subjugate personal interests to those of principal. For example: Trustee of trust; Directors-shareholders of corporation.

Question 7

Duties of Agents to the Principal

Answer 7

1. Fiduciary Duties (Loyalty) 2. Good Conduct (Due Care) 3. To Inform Principal 4. To Obey Instructions. 5. Diligence

Question 8

1) Fiduciary Duties (Duties of Agents to the Principal)

Answer 8

A) Safeguarding Confidential Information.

B) Avoiding Conflict of Interest: Multiple Principals, Competing with principals, and Self dealing.

Question 9

2) Good Conduct (Due Care)

Answer 9

You know.

Question 10

3) To Inform Principal

Answer 10

Grigsby vs. OK Travel.

Question 11

Grigsby vs. OK Travel

Answer 11

Travel agent knew that the poster in the store did not have a bond # (insurance policy for a refund if a tour is cancelled, no return for your deposit). The agent did not pass the information on to the principal Ms. Grimsby that there was no bond #. She breached due care or good conduct as she did not inform her about this!

Question 12

4) To Obey Instructions

Answer 12

You got it.

Question 13

5) Diligence

Answer 13

You got it.

Question 14

Duties of Principals to Agents

Answer 14

1. Compensation (If that was agreed).
2. To Reimburse and Indemnify.
3. Cooperation.

Question 15

Agency Relationship: With Respect to Third Parties

Answer 15

A) Liability for Contracts. 1. Principal’s Liability. a) Did the agent have authority?

Question 16

Did the Agent have Authority? (Three ways)

Answer 16

Expressed: been given authority oral or written, outwardly.
Implied: do whatever is reasonable to carry out the expressed authority.
Apparent: Based on manifestation by principal, not by agent! and customer’s reliance.
No Apparent Authority based solely on agent’s representations of authority.

Question 17

Ratification

Answer 17

An agent may have acted without authority, but a principal who later ratifies the conduct will be bound as if authority had originally existed.

Question 18

Proper Disclosure: Hopkins vs. Morris

Answer 18

Make sure to understand the statues of the people you are dealing with! Hopkins provided $75000 of services but has not been paid, so she wants to sue! But who does she sue?
Who was she working for? Connecticut Arena Football II is a corporation, it has agents. If Morris worked for them, the she is binding to Hopkins!

Question 19

Employee or Independent Contractor?

Answer 19

Why does it Matter?
1. Ownership of work product.
2. Regulation and legal obligation.
3. Civil and criminal liability.
The most important factor is the degree of the control over details.

Question 20

Ownership of Work Product

Answer 20

Graham vs. James

Question 21

Graham vs. James

Answer 21

James owns program if independent contractor, Graham owns program if James is an employee. The Court decides that James is an independent contractor.

Question 22

Regulation and Legal Obligation

Answer 22

Minimum wage regulation, unemployment compensation, worker’s compensation insurance, withholding taxes, overtime pay, etc. For example: Shot girl. This seems like a way for a bar owner to avoid regulation of the shot girl as an employee.

Question 23

Civil and Criminal Liability (Two Step Analysis)

Answer 23

Respondeat Superior: vicarious liability for employers based on acts of employees (rather than employers’ own negligence). Two Step Analysis: 1) Is the person an employee? 2) And was that person acting under the scope of employment?

Question 24

Caveat

Answer 24

Claim of negligent hiring and/or supervision. Duran v. Furr’s Supermarkets, Inc.

Question 25

Duran v. Furr’s Supermarkets, Inc.

Answer 25

Romero is an independent contractor for Furr, and injures a customer.The Court: Furr is still liable for their own negligence: for not supervising him properly and not looking at the officer’s work history!

Question 26

Lang vs. National Biscuit: Was the person acting under the scope of employment?

Answer 26

Lange managed a grocery store. Lynch was an employee of Nabisco who delivered and stocked Nabisco products at Lange’s store. When Lange criticized Lynch’s work Lynch violently argued with Lange and then viciously assaulted him.
The Court said: The argument was about the job, and the court said that was enough to be in the scope of the employment!

Question 27

Doe v. Liberatore

Answer 27

Even if there is no Vicarious Liability, because the employee was not acting within the scope of employment, there may still be direct liability for the employers own negligence in hiring and/or failure to supervise the employee!!
The employer here is negligent also because he could have stopped the priest from doing this and could have supervised him.

Question 28

Employment Regulations

Answer 28

1) Wage-Hour Laws 2) Worker Health and Safety 3) Income Security 4) Health and Medical

Question 29

Wage-Hour Laws

Answer 29

Federal and state, child labor laws, Minimum wage laws– maximum hour laws. Federal Minimum Wage = $7.25/hr.

Question 30

Worker Health and Safety

Answer 30

Occupational Safety and Health Act (197) OSHA: federal agency charged to make rules about workplace safety and are there to enforce those rules.
Workers Compensation Laws: If you get hurt at work by negligence of a co-worker, you have no tort rights against him.
Conn. Disability Payment Schedule: you can get paid on a schedule based on the percentage of what you loss (if you lose a 10% arm loss, you get 21 weeks of pay)(varies by states!).
Fellow servant doctrine: to promote harmony in the workplace, you could not sue a fellow employee and essentially sue your fellow employer.

Question 31

Income Security

Answer 31

Social Security. Medicare. Private Pension Plans. Unemployment Compensation.

Question 32

Health and Medical

Answer 32

Most employers have NO statutory requirement to offer medical or health insurance coverage.
COBRA: allows employees to purchase continuing coverage after termination of employment.
Affordable Act (2014): employers with more than 50 employees will have to offer medical insurance to employees or pay a penalty (FMLA) too.

Question 33

Employment-at-Will (EAW)

Answer 33

An employer may dismiss an employee for cause, for no cause or for bad (immoral, unethical) cause. Distinct american principle.

Question 34

EAW: A. In the Absence of a Contract Otherwise

Answer 34

To be EAW, employment must be of indefinite duration.
Indefinite duration: As long as you do a good job, as long as we stay in business, for life, etc.
Definite duration: for 1 year, for the summer, until the next election, etc.

Question 35

B. Exceptions to EAW-Stauatory

Answer 35

NLRA–Can not be fired for union activities.
Discrimination: Title VII (race, color, religion, sex, national origin–EEOC), ADEA (age) ADA (disability)–can’t be fired for making a claim. (2011 SCOTUS case extends protects to family members– fiancé). Whistleblower protection (limited to specific statutory definitions and often narrowly interpreted) (more later).

Question 36

C. Exception to EAW-Common Law

Answer 36

Not universal. Some states recognize none. Most states recognize some or some version of one or another.
EAW is still the prevailing law in America. Unpredictable.

Question 37

Claim for Wrongful Discharge

Answer 37

This is really a claim for unlawful discharge. Simply because a firing is “wrongful” does not mean it is “unlawful.”

Question 38

Public Policy Exception

Answer 38

The exception is narrow and it is generally narrowly construed by the courts who interpret and apply it. Typically, your situation has to fit into one of two categories:
A. Refusal to commit an unlawful act
B. Performance of an important public obligation
(Exercising a legal right or Performing a legal duty).

Question 39

A. Refusal to Commit an Unlawful Act

Answer 39

Like refusing to commit perjury. Sheets v. Teddy’s Frosted Foods, Inc. case. You CAN be fired for refusal to commit an unethical act!

Question 40

Sheets v. Teddy’s Frosted Foods, Inc

Answer 40

He finds the meat says a 1lb but they are short weighted. He tells the boss this information and gets immediately fired. He sues for the unlawful discharge.
The Court agreed with Mr. Sheets, Court said this was an unlawful discharge. In CT, when an employer asks an employee to commit a crime, the employee can be held more severely.

Question 41

B. Performance of an Important Public Obligation

Answer 41

Including: Exercising a legal right or Performing a legal duty. For example: making a workers comp claim; Jury Service. Gardner v. Loomis Armored, Inc. case.

Question 42

Gardner v. Loomis Armored, Inc.

Answer 42

Kevin Gardner, armored truck driver, acted heroically and was fired. Kevin sues for wrongful discharge, says he should not be fired for this. In this case, The Court agreed with Kevin, as this conduct will encourage people to help other people. His termination is unlawful.

Question 43

Garcetti vs. Ceballos

Answer 43

DA wrote memo to supervisor stating that police officer’s affidavit for warrant application contained misrepresentations. He was fired. In the public sector working for government, you can get fired for expressing your public opinion.

Question 44

No Whistleblower Protection!

Answer 44

In common law, whites blowers are considered wrong doers! Whistleblowers are considered to be harmful to their employers. There is a preference in the law AGAINST whistleblower protection.

Question 45

Smith vs. Calgon Baron

Answer 45

Donald Smith -Warehouse supervisor at Calgon Carbon Corp. discovered toxic dumping of caustic soda. Reported it; got fired.
The Court said: The company can fire Smith for speaking out. He will hinder the harmony of the workplace by speaking out. Here he was not doing the dumping, he was supervising (different than before with an illegal act).

Question 46

McNamee Case

Answer 46

The Court said she can be fired. This is not a safety requirement, this is not a requirement with federal regulation, therefore you are not protected by the whistle blower protection of PA as this not a wrong doing. You fall under the common law, and can be fired.

Question 47

Bammert v. Don’s Super Valu, Inc.

Answer 47

Karen Bammert, Asst. Grocery manager, fired because her husband, a cop, arrested her boss’s wife for DUI. The Court sides with Don!
The Court said: You can be fired at anytime, even for a bad cause! The courts recognize this is unfair but this is the harsh reality of employee at will.

Question 48

There is Public Policy behind EAW!

Answer 48

By being able to fire employees whenever, this keeps unemployment down as they can hire people continuously. This encourages employers to hire.