Topic 1: The Nature of the Employment Relationship Flashcards
20-factor Analysis
A guide adopted by the Internal Revenue Service for determining if a worker should be classified as an independent contractor.
ADEA
Age Discrimination in Employment Act
Agency
A contract relationship between a principal and an agent whereby the principal authorizes the agent to work on his or her behalf and with power to bind the principal.
Arbitration
A procedure for resolving collective bargaining impasses by which an arbitrator (third party) choose a solution to the dispute.
Common Law
Principles developed over centuries as a result of legal decisions made by judges in individual cases.
Common Law Agency
A test that classifies a worker as an employee if the employer maintains the right to control the method of work performed.
Constructive Discharge
Resignation of an employee because an employer allows working conditions that are no longer tolerable for any reasonable employee.
Contract
A legally binding agreement between two parties.
Covenant of Good Faith
A presumption that each party in a contract will deal with each other in good faith and fairness.
Covered Employer
An employer that is engaged in a commerce industry and employs fifteen or more employees.
Covered Employment Agency
An agency that regularly procures employees for at least one covered employer; subject to employment law regulation.
Dual Purpose Mission
Occurs when an employee conducts personal and work business at the same time; subjecting the employer to liability for the employee’s actions
Economic Realities Test
A test that classifies a worker as an employee if the employee is substantially economically dependent on an employer.
Employee
One who performs services under the direction and control of another.
Employer
One who employs the services of others in exchange for wages.
Employment-at-will Doctrine
The predominant rule governing employer-employee relations that states that an employer may terminate an employee at any time, for any legal reason, without incurring liability.