Labor and Employment Law

Introduction

Historically, employment law was governed by the common law doctrine of “employment at will” where either employer or employee could terminate the relationship at any time, for any reason.

Today employment law is heavily regulated by state and federal statutes.

Employment at Will

Traditionally, employment relationships have been by common law doctrine of “employment at will.”

Either party may terminate at any time for any reason.

Exceptions: Contract, Tort, Public Policy.

Whistleblowing

Whistle Blowing occurs when an employee tells a supervisor or the press that the employer is engaged in some unsafe or illegal activity.

Protection under federal and state law.

Whistleblower Protection Act

Case 33.1: Lins v. Children’s Discovery Centers of America, Inc.  (1999).

Emerging Trends

Emerging Trends

Intelligent Agents

autonomous or semi-autonomous internet programs that interact with people or other programs to execute specific tasks, including the searching, ordering and delivery of goods via “point and click” electronic contracts on the internet.

Generally, these agents have at least apparent authority to act for and bind Principal who is stopped.

Termination by Act of the Parties & Termination by Operation of Law

Termination by Act of the Parties

ü  Lapse of Time.

ü  Purpose Achieved.

ü  Occurrence of a Specific Event.

ü  Mutual Agreement.

ü  Termination by One Party.

ü  Notice of Termination.

Termination by Operation of Law

ü  Death or Insanity of either Principal or Agent: automatic.

ü  Impossibility.

ü  Changed Circumstances.

ü  Bankruptcy.

ü  War.

Termination of an Agency

Termination of an Agency

Agency can be terminated by

§ An Act of the Parties; or

§ By Operation of Law.

Once agency terminated Agent has no actual authority to bind the Principal, but may have apparent authority to bind Principal

Liability for Agent’s Crimes & Liability for Subagent’s Acts

Liability for Agent’s Crimes

General Rule

Agent is liable, Principal is not, unless:

§ Principal authorized or participated in crime.

§ Some jurisdictions hold Principal liable for violating statutes.

Liability for Subagent’s Acts

If Agent is authorized to hire subagents, Principal is liable for the acts of the subagent.

If Principal undisclosed, Agent is responsible for wages and Principal liable for torts.

Liability for Independent Contractor’s Torts

Liability for Independent Contractor’s Torts

First determine whether worker is employee or independent contractor (factors p. 573).

General rule: Employer is not liable for acts of independent contractors because Employer no right to control.

Exception

hazardous activities

Independent Contractor is liable for her own torts.  Case 32.3: Haag v. Bongers (1999).

Liability for Agent’s Intentional Torts

Liability for Agent’s Intentional Torts

Principal liable for intentional torts committed with the scope of employment.

Employee is a tortfeasor as well.

Employer is liable for Employee’s acts which Employer knew or should have known the Employee had a propensity to commit.

Employer Liability

Employer Liability

Departures from the Employer’s Business was departure minor or substantial?

Case 32.2: Joel v. Morrison (1834).

Borrowed Servants.

Notice of Dangerous Conditions.

Liability for Agent’s Negligence

Liability for Agent’s Negligence

Applies only to Employer-Employee relationships.

Doctrine of Respondeat Superior: Employer is vicariously liable for Employee’s negligent torts committed within the Agent’s “course and scope of employment.”

Liability for Agent’s Torts

Liability for Agent’s Torts

Agent is liable to 3rd party for his own torts.

Principal may be liable for Agent’s torts if they result from

§ Principal’s own tort.

§ Principal’s authorization of tort.

§ Agent’s unauthorized but fraudulent conduct made within scope of agency.