Unit 5.14 - Individual Employment Rights

Question 1

Define the employment-at-will doctrine, employee handbooks, and an implied contract

Answer 1

Employment-at-will doctrine - Employer and the employee have mutual right to terminate the
employment relationship

Employee handbooks - Describes important aspects of the employment relationship (helpful for both employees and managers)

Implied contracts - Employers are prevented from firing employees if they have an implied contract for employment (ex. permanent employee); includes promissory estoppel - a legal doctrine that says employer may be liable for broken promises that result in financial harm for the employee

Covenant of good faith - Under this exception of employment-at-will, an employer typically may not terminate an employee in bad faith or terminate an employee when the termination is motivated by malice (ex. sales employee right before a raise)

Question 2

What is retaliatory discharge?

Answer 2

When employers terminate employee in retaliation for actions that were
legal, but contrary to the interests of the employer, such as filing a
workers’ compensation claim

Question 3

What is constructive discharge?

Answer 3

Employer creates unpleasant working conditions so employee will quit

Question 4

What are common law tort theories?

Answer 4

A wrongful act or injury done willfully, negligently, or in circumstances in which people, their property, or their reputations are harmed

Question 5

What is defamation?

Answer 5

Making slanderous (spoken) or libelous (written) statements about a person that harm the person’s reputation or professional credibility.

To prove a case:

• Evidence that a false or malicious statement was made
• Person was harmed by the statement
• No legitimate business reason for the statement to be made

Question 6

What are noncompete agreements?

Answer 6

A restrictive covenant designed to protect a business’ interests.

Criteria:
1. It must be neither generally known in the trade nor readily ascertainable.
2. It must have been developed at the employer’s expense.
3. It must provide the employer with a competitive advantage.
4. The employer must generally strive to keep it confidential