Chapter 23 Employment Law

I. Employment is formed through:

  1. Oral Agreements
  2. Detailed Written Contract
    • C.E.O (upper management), celebrities, sports, small business service contracts
  3. Organized Labor Agreements
    • Union Contracts (membership)- “Collective Bargaining Agreement”

II. Labor-Management Relations

  • Unions– an organization of employees united for the common cause of promoting the welfare of member employees
  • Union Employees have negotiated contracts that specifiy all the terms of employment. Collective Bargaining Agreement
  • What can be negotiated?
    1. Wages
    2. Hours (work load)
    3. Benefits
    4. Working Conditions
  • Grievence Procedure- formal complaint to management stating that the collective bargaining agreement has been “breached”
  • Collective Bargaining Agreements cannot protect from:
    1. Layoffs
    2. Plant Closings

III. Professional Employment Contracts

  • employees that are in demand and that might be in a position to negotiate their own individual employment contract (Executives, upper management, celebrities, sport)
  • Length of Contract
  • Description of responsibility
  • Early termination agreements

IV. Federal Labor Laws

  1. National Labor Relations Act 1935- “Wagner Act”
    • Legalized Collective Bargaining Agreements
    • Established guidelines for what can be negotiated
  2. Taft-Hartley Act 1947 (Labor Movement Relations Act)- “Unions have too much power”
    • 60 day cooling off period for union workers who impacted public warfare
      • President implements
    • Closed Shop Unions
      • had to be in the union before you start to work
    • Union Shops
      • gave you the choice
    • Made feather betting illegal (pushing too many employees on one job)
  3. Landrum- Griffin Act 1959- (Labor Management Reporting Act of 1959)
    • unions have become too corrupt and federal oversite must be needed
    • full disclosure of all financial records


collective bargaining agreement-contract negotiated by the employer and representatives of the labor union, covering all issues related to employment


implied covenant– a promise that an employer will treat an employee with fairness and honesty

public policy– legal principal which holds that no one should be allowed to do anything that tends to injure the public at large

right-to-work– (State right to work laws prohibit union shops)

stand alone-

Taft-Hartley Act– created the cooling off period

trade secret– inside information about a company’s products, processes, or inventions

union– organization of employees formed to promote the welfare of its members

Wagner Act– first federal dealing with collective bargaining

work permits

  • union members select representatives to negotiate a contract with the employer through a series of discussions known as collective bargaining
  • during collective bargaining process, union and company negotiators discuss such issues as working conditions, wages, benefits, job security, and layoff and firing policies
  • employer must have a legit, employment-related reason, or just cause, to fire a union worker.
  • grievance procedure sets up a series of steps employees must take to appeal an employers decision they feel violates just cause
  • nonunion companies include a grievance procedure
  • collective bargaining agreements do not guarantee union employees lifelong employment
  • Famous Entertainers, athletes, top business executives, artists and writers negotiate their own contracts
  • employers and employees have certain mutual expectations in their working relationship
  • employment-at-will allows employer to fire employee at any time
  • Unjust dismissal- provides employees with grounds for legal action against employers who have treated them unfairly
  • Child Labor Laws– laws that control the work that children may do
  • grievance procedure– employees have the right to appeal any employers decision they feel violated just cause
  • unjust dismissal- provides employees with grounds for legal action against employers who have treated them unfairly
  • implied contract- involves an oral agreement that would ordinarily be covered by employment at will had the employer not said or done something that implies otherwise
  • disclaimer- preserves employment at will
  • closed shop you have to join a union
  • employment contrarcs are negotiated by employers and groups of employees through a series of discussion known as collective bargaining

















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