Chapter 21Chapter 21

Employment Employment ContractsContracts

What is employment?What is employment?

EmployerEmployer - The party in an employment - The party in an employment contract who pays.contract who pays.

EmployeeEmployee - the party in an employment - the party in an employment contract who does the work.contract who does the work.

EmploymentEmployment - A contract to pay for - A contract to pay for supervised work.supervised work.

Independent ContractorIndependent Contractor - One retained - One retained to accomplish a specific result without to accomplish a specific result without supervision.supervision.

Where do the Terms of the Where do the Terms of the Employment Contract come Employment Contract come From?From?

Express AgreementsExpress Agreements• Employment for a specific periodEmployment for a specific period - -

employment contract which contains an employment contract which contains an express term identifying the length of express term identifying the length of employment.employment.

Implied AgreementsImplied Agreements• Terminable at willTerminable at will - Describes a job in - Describes a job in

which there is no agreement concerning which there is no agreement concerning length of employment.length of employment.

Law provide man TermsLaw provide man Terms

What Employment Duties What Employment Duties are Created by the Law?are Created by the Law?

ObedienceObedience• Duty of obedienceDuty of obedience - The duty that the employee should obey all - The duty that the employee should obey all

reasonable orders and rules of the employer.reasonable orders and rules of the employer.

Reasonable SkillReasonable Skill• Duty of reasonable skillDuty of reasonable skill - The duty that those who accept work - The duty that those who accept work

must possess the skill, experience, or knowledge necessary to must possess the skill, experience, or knowledge necessary to do it.do it.

Loyalty and HonestyLoyalty and Honesty• Duty of loyalty and honestyDuty of loyalty and honesty - The duty that the employee - The duty that the employee

should not commit a fraud upon the employer or reveal should not commit a fraud upon the employer or reveal confidential information about the business.confidential information about the business.

Reasonable PerformanceReasonable Performance• Duty of reasonable performanceDuty of reasonable performance - The duty of an employee to - The duty of an employee to

perform assigned duties at the prescribed time an din the perform assigned duties at the prescribed time an din the prescribed place.prescribed place.

What Duties are Imposed What Duties are Imposed by Law on the Employer?by Law on the Employer?

Reasonable TreatmentReasonable Treatment Safe Working ConditionsSafe Working Conditions Fair Labor StandardsFair Labor Standards Payroll DeductionsPayroll Deductions

• Payroll deductionsPayroll deductions - A legal obligation of the employer to - A legal obligation of the employer to withhold a percentage of the paycheck to cover the withhold a percentage of the paycheck to cover the employee’s federal and state income tax obligations.employee’s federal and state income tax obligations.

• Worker’s CompensationWorker’s Compensation - Payment that compensates - Payment that compensates employees for injuries that occur on the job.employees for injuries that occur on the job.

Duties to minorsDuties to minors• Work permitWork permit - A document given by the state allowing a - A document given by the state allowing a

person under eighteen years old to work.person under eighteen years old to work. Military Service and VotingMilitary Service and Voting

How is the Employment How is the Employment Contract Terminated?Contract Terminated?

Employment Contracts Terminable at WillEmployment Contracts Terminable at Will• Wrongful dischargeWrongful discharge - when an employer fires an - when an employer fires an

employee for the wrong reason.employee for the wrong reason. Employment Contracts for a Specific Employment Contracts for a Specific

Length of TimeLength of Time Employment Contracts with GovernmentsEmployment Contracts with Governments Right To Unemployment CompensationRight To Unemployment Compensation

• Unemployment CompensationUnemployment Compensation - Governmental - Governmental payment to lessen consequences of job loss.payment to lessen consequences of job loss.