Chapter 18 - Employment Law

Question 1

An employee at will could be fire for_____?

Answer 1

A good reason, a bad reason, or no reason at all. (Definition for employee at will in general)

Question 2

In the US for what reason can an employee at will be fired?

Answer 2

For any reason in the absence of a specific legal exception.

Question 3

Where do the exceptions to an employee at will be fired for any reason come from? 2

Answer 3

Statutes and Common Law

Question 4

Where are the statute made exceptions to employee at will applicable?

Answer 4

Anywhere in the US

Question 5

Where are the common law made exceptions to employee at will applicable?

Answer 5

Only in the states where the common law was made.

Question 6

When was the Wagner Act passed? What is its other name? What does the Wagner Act do?

Answer 6

• 1935
• National Labor Relations Act
• Prohibits employers from penalizing workers who engage in union activity (Joining or Forming)
• Requires employers to “bargain in good faith” with unions

Question 7

What does the Family and Medical Leave Act guarantee?

Answer 7

That both men and women can take up to 12 weeks on unpaid leave each year for childbirth, adoption, or a serious health condition of their own or in their immediate family.

Question 8

Under the Family and Medical Leave Act, who counts as a family member?

Answer 8

Spouse, Child or Parent (Not Sibling or In-law)

Question 9

What must a person who takes leave under the Family and Medical Leave Act be allowed to do?

Answer 9

Return to the same or an equivalent job with the same pay and benefits.

Question 10

Who does the Family and Medical Leave Act apply to?

Answer 10

-Only to companies with at least 50 workers
-Employees who have been with the company full time for at least a year.
(This accounts for 60% of all employees)

Question 11

Are companies required to provide their employees with health insurance?

Answer 11

No, but the ACA does state that employers that have more than 50 full time employees must pay a penalty if they do not provide basic health insurance. In addition, company insurance policies must cover employees’ children up to age 26.

Question 12

What is COBRA? What does it do? Who does it apply to?

Answer 12

• It is the Consolidated Omnibus Budget Reconciliation Act.
• Former employees must be allowed to continue their health insurance for 18 months after leaving their job. But the employees must pay for it themselves up to 102% of the cost (2% for admin costs).
• It applies to any company with 20 or more workers

Question 13

What is Wrongful Discharge?

Answer 13

An employer may not fire a worker for any reason that violates basic social rights, duties or responsibilities.

Question 14

What is wrongful discharge an exception to?

Answer 14

Employment at will

Question 15

What does the public policy rule concerning wrongful discharge prohibit? 5

Answer 15

Rules vary from state to state, in essence it prohibits n employer for firing a worker for:

• Refusing to violate the law
• Performing a legal duty (jury duty)
• Exercising a legal right
• Supporting basic societal values
• a reason that clearly violates public policy

Question 16

What is Truth in Hiring?

Answer 16

That the court will uphold oral and written promises made during the hiring process to be valid.

Question 17

What is the contract law policy about employee handbooks?

Answer 17

The court holds that an employee handbook creates a contract.

Question 18

What is Qualified Privilege?

Answer 18

Employers are liable only for false statements that they know to be false or that are primarily motivated by ill will.

Question 19

When can employers be held liable for defamation?

Answer 19

When they give false and unfavorable reference about a former employee.

Question 20

What is the exception for employers being held liable for defamation?

Answer 20

More than half of the states recognize qualified privilege for employers who give references about former employees.

Question 21

Do employers have a legal obligation to disclose information about former employees? What is the exception?

Answer 21

• Generally, no

- When a former worker is potentially dangerous, employers do have an obligation to disclose this information.

Question 22

What is the liability for employers who permit cruel treatment of their workers?

Answer 22

Face liability under the tort of intentional infliction of emotional distress.

Question 23

What is a whistleblower?

Answer 23

Employees who disclose illegal behavior on the part of their employer.

Question 24

For what situations is a whistleblower protected? 4

Answer 24

• Defrauding the government - The False Claims Act is a statute that permits anyone to bring suit against someone who defrauds the government. The government and the whistleblower share any recovery. The Act prohibits employers from firing workers who file suit under the statue
• Violations of securities and commodities laws - Under the Dodd-Frank Act, anyone who provides information to the government about violations of securities or commodities law is entitles to a portion of whatever the award the government receives, provided the award tops $1 million. If a company retaliates against tipsters, they are entitled to reinstatement, double back pay, and attorney’s fees.
• Employees of public companies - The Sarbanes-Oxley Act of 2002 protects employees of public companies who provide evidence of fraud to investigators. A successful plaintiff must be rehired and given back pay.
• Common Law - Most state courts do not permit employees to fire workers who report illegal activity.

Question 25

What is OSHA? What does it do?

Answer 25

The Occupation Safety and Health Act ensures safe working conditions.

• Employers are under a general obligation to keep their workplace free from hazards that could cause serious harm to employees.
• Employers must comply with specific health and safety standards.
• Employers must keep records of all workplace injuries and accidents
• OSHA may inspect workplaces to ensure that they are safe. They may assess fines for violations and order employers to correct unsafe conditions.

Question 26

What are employees entitled to under common law regarding privacy?

Answer 26

A reasonable expectation of privacy

Question 27

What is the laws regarding privacy say about off-duty conduct?

Answer 27

Some states have passed laws that protect the rights of employees to engage in any lawful act when off duty (smoking, driving).
In the absence of such a statute an employers does have the right to fire an employee for off-duty conduct.

Question 28

When can government employees be tested for drug and alcohol use?

Answer 28

-Only if they show signs of use
or
-If they are in a job where this type of abuse endangers the public.

Question 29

Can private employers test for alcohol and drugs?

Answer 29

The federal government and most states allow testing.
-However, the Equal Employment Opportunity Commision (Fed agency charged with enforcing fed employment laws) prohibits testing for prescription drugs unless the worker seems impaired.

Question 30

Can employers use lie detectors?

Answer 30

Under the Employee Polygraph Protection Act of 1988, employers may not require, or even suggest, that an employee or job candidate submit to a lie detector test, except as part of an “ongoing investigation” into crimes that have occured

Question 31

What does the Electronic Communications Privacy Act of 1986 permit?

Answer 31

Employers to monitor workers’ telephone calls and email messages if:

1. The employee consents
2. The monitoring occurs in the ordinary course of business, or
3. In the case of email, the employer provides the email system.
   - -However, bosses may not disclose any private information revealed by the monitoring.

Question 32

Concerning social media, at minimum what should employers do?

Answer 32

Not permit employees to reveal confidential information or even their company’s name on a blog or social network.

Question 33

What must an employer complete after hiring an employee?

Answer 33

An I-9 form, Employment Eligibility Verification, within three days. It must be kept for three years after the worker is hired or one year after termination.

Question 34

What is the Fair Labor Standard Act?

Answer 34

Regulates wages and limits child labor nationally. They set a minimum wage and require time and a half for any hours or 40 in one week. The wage provisions do not apply to managerial , administrative, or professional staff. It also prohibits “oppressive child labor”, which means that children under 14 may work only in agriculture and entertainment. 14-15yos are permitted to work limited hours after school in nonhazardous jobs. 16-17yos may work unlimited hours in nonhazardous jobs.

Question 35

What do workers compensation statutes do?

Answer 35

Provide payments for employees for injuries incurred at work. In return, the employees are not permitted to sue their employers for negligence. The amounts allowed (for medical expenses and lost wages) under worker’s comp are often less than a worker might recover in court, but the injured employees trade the certainty of some recovery for the higher risk of trial.

Question 36

Who does the social security system pay benefits to?

Answer 36

Workers who are retired, disabled, or temporarily unemployed and to the spouses and children of disabled or deceased workers. It also provides medical insurance to the retired and disabled.

Question 37

What is the Federal Unemployment Tax Act?

Answer 37

It is part of the social security system and provides support to the unemployed. It sets national standards, but states are free to set their own benefit levels and payment schedules. While receiving payments, a worker must have a good-faith effort to look for other employment. A worker who quits voluntarily or is fired for just cause is not entitled to benefits.

Question 38

Donny fired Willie. If Willie is an at-will employee, what is true?

1. Willie has no legal recourse because he is an employee at-will.
2. Willie has no legal recourse, unless Donny committed a criminal act.
3. Donny is immune from lawsuit because there is no contract.
4. Willie has no legal recourse, unless Donny violated public policy.

Answer 38

1

Question 39

Wrongful discharge claims are generally based upon all EXCEPT:

1. contract.
2. tort law.
3. public policy.
4. criminal law.

Answer 39

4

Question 40

Don works at the local gas station and garage. Don’s boss, Betsy, encourages Don to find brake problems with out of state cars that come to the station. Usually Don tells the driver that their brakes are leaking fluid, and offers to replace the brakes at a good price. The cost is low because Don does nothing more than remove the tires and look at the old brake pads. One day a woman with five kids comes to the station and Betsy tells Don to “do a brake job.” Don does not want to have five kids running around the station and tells the lady that they are out of gas and to go down the street to the next station. Can Betsy fire Don?

1. No, because Betsy ordered him to perform an illegal act.
2. Yes, unless the station really was out of gas..
3. Yes, because Betsy ordered him to perform a service and Don refused.
4. No, but Don is liable for any economic loss Betsy suffered.

Answer 40

1

Question 41

Wanda is a teacher at a public school in New Jersey. At a press conference she complains that standardized tests are generally worthless, and nothing more than an economic scam on the public because the school board appropriates money for tests, pays a grading service, and buys “teaching guides.” The school board has an emergency meeting and votes to fire Wanda immediately. What, if true, is Wanda’s strongest argument in favor of her reinstatement?

1. The school board cannot restrict the speech of its employees.
2. Wanda had a constitutional right to be a whistleblower.
3. The teacher handbook demands formal hearings prior to any suspension or firing.
4. The school board does not usually have emergency meetings.

Answer 41

3

Question 42

Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Megan was an at-will employee, she had no legal right to claim the company was liable for damages. Is the employer right?

1. Yes. An at-will employee does not have a legal right to claim wrongful discharge of employment.
2. Yes. As an employee, Megan owes a duty of loyalty to her employer. If the company was found to have acted illegally by falsifying the reports, it (not Megan) would be liable.
3. No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act.
4. No. Even though Megan was an at-will employee, such employees may not be fired without just cause.

Answer 42

3

Question 43

Jessica was a former employee of Mark. When potential employers called Mark for a reference about Jessica, he stated she was not a very good worker and had been fired for excessive absences. He said he believed Jessica was on drugs, but he did not know for sure. Jessica learned what Mark was saying and sued him. In most states:

1. it was not proper for Mark to say what he said, since courts have consistently ruled that former employers should not give references over the telephone or in writing without the former employee’s written authorization.
2. it was legal for Mark to say what he said, since courts have consistently ruled that former employers are immune from lawsuits for giving references.
3. it was legal for Mark to say what he said if it was true and Mark was not motivated by ill will.
4. though it was proper for Mark to talk about Jessica’s work-related history, he acted improperly when he said he thought she was on drugs.

Answer 43

3

Question 44

Which of the following statements is correct?

1. Both may test for drugs or alcohol without restriction.
2. Neither may test for drugs or alcohol.
3. It is much easier for a government employer to test an employee for drugs or alcohol than it is for a private employer.
4. Generally speaking, in most states, it is easier for a private employer than the government to test an employee for drugs or alcohol.

Answer 44

4

Question 45

Abbott provided evidence of fraudulent financial reporting about his employer, a publicly traded company, to federal securities investigators. Abbott receives whistleblower protection under:

1. the U.S. Constitution.
2. The Sarbanes-Oxley Act.
3. The Civil Service Reform Act.
4. None of the above.

Answer 45

2

Question 46

Don works at the local gas station and garage. He wants to support the general strike on May 1, in solidarity with immigrants, the working poor and students. His boss, Betsy tells him that she will fire him if he does not work on May 1. What is true?

1. Betsy can fire Don, and Don has no legal recourse.
2. Betsy can fire Don, but Don can recover damages against Betsy.
3. Betsy can fire Don, unless he claims that 1 May is a religious holiday for him.
4. Don has no recourse but to quit.

Answer 46

2

Question 47

The Fair Labor Standards Act:

1. preempts any state wage regulation.
2. wage provisions do not apply to professional or managerial employees.
3. does not apply to children.
4. limits the number of hours an employer can require a person to work in any given week.

Answer 47

2

Question 48

The Family and Medical Leave Act applies to:

1. companies with 100 or more employees.
2. companies with 15 or more full-time workers.
3. any company engaged in interstate commerce.
4. companies with 50 or more employees.

Answer 48

4

Question 49

Orson was fired from his job behind the ticket counter at the airport. He was loudly told to put his personal belongings into a plastic bag and was led out by security guards in front of his co-workers and customers. His supervisor told him not to return. Orson’s employer faces potential liability for:

1. violation of the FLSA.
2. intentional infliction of emotional distress.
3. whistleblowing.
4. defamation.

Answer 49

2

Question 50

What is necessary for an employee to win a defamation suit against a former employer?

1. The employer makes an untrue statement about the employee AND the employer reveals the former employee’s salary.
2. The employer makes an untrue statement about the employee OR the employer reveals the former employee’s salary.
3. The employer makes an unfavorable reference AND the employer makes an untrue statement about the employee.
4. The employer makes an unfavorable reference OR the employer makes an untrue statement about the employee.

Answer 50

3

Question 51

Xavier wants to work at the CIA. Xavier knows there is a federal law, the Employee Polygraph Protection Act, prohibits private employers from imposing or suggesting that employees take polygraph tests. Nonetheless, CIA officials tell Xavier that he must submit to a polygraph test or he cannot be considered for a position at the CIA. What must be true?

1. The CIA considers applicants to be criminal suspects.
2. The CIA considers Xavier to be a criminal suspect.
3. Xavier must take the test, but he has a remedy if he is refused employment based on the polygraph test results.
4. The law exempts the CIA.

Answer 51

4

Question 52

The Fair Labor Standards Act (FLSA) provides that hourly workers must:

1. be paid a minimum wage of $7.25 per hour and time and a half for hours over 40 per week.
2. be paid a minimum wage of $5.15 per hour.
3. be given one hour each day for lunch break.
4. not work more than 45 hours per week.

Answer 52

1

Question 53

Roxanne was fired from her job when her employer instituted a new policy that prohibited employees from smoking cigarettes. This requirement applied to off-duty time as well as job-related time. Roxanne claimed that she could not quit smoking and that she was wrongfully fired since she did not smoke in the workplace – only when she was outside the building and during off-duty time.

1. The company is not liable to Roxanne since the nonsmoking requirement is reasonable given the high cost of treating smoking-related illness.
2. The company is not liable to Roxanne since the United States Supreme Court has expressly ruled such a company policy does not violate the worker’s right to privacy.
3. The company would be liable to Roxanne only if there is a state statute prohibiting employers from passing such job-related requirements.
4. The company has wrongfully fired Roxanne and is liable to her for damages.

Answer 53

3

Question 54

The National Relations Labor Act of 1935 is also known as the:

1. Robinson-Patman Act.
2. Freedom to Work Act.
3. Wagner Act.
4. Taft-Hartley Act.

Answer 54

3

Question 55

David has worked as a CPA for Accountants R Us for about eight months. When his wife had a baby, he requested to take some time off. He believes he is allowed to do so pursuant to the Family and Medical Leave Act. How many weeks is David allowed to take off under the Family and Medical Leave Act in this situation?

1. None.
2. 12 weeks.
3. 24 weeks.
4. Six weeks.

Answer 55

1

Question 56

When may an employer require an employee to submit to a lie detector test?

1. When the employee has been hired for less than 90 days.
2. When the test is part of an on-going investigation into crimes that have occurred.
3. When the employer has reason to believe the employee is using illegal drugs on the job.
4. When all employees are being questioned using a lie detector.

Answer 56

2

Question 57

An employee at a large factory tells his employer that he needs to stay home for a week to care for his sick child. Can the employer legally fire him?

1. No, if the employee claims rights under the FMLA.
2. Yes, because the employee is not entitled to receive sick leave.
3. No, unless the employee expects to receive his usual compensation during his absence.
4. Yes, an employee at will can be fired for any reason.

Answer 57

1

Question 58

Does the Family and Medical Leave Act apply to professionals like CPAs?

1. Yes, if they work for a company with at least 50 workers.
2. Yes, but only if they are paid on an hourly basis.
3. No, but the professional firm must provide adequate vacation and sick days.
4. No, unless the employer specifically provides coverage.

Answer 58

1