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Employment at Will

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Employment-at-will Doctrine
Whistleblower Strategy
Yasser Benadada

Strayer University
Professor Holeman

Table of Contents Employment at will Doctrine 2 Public-policy exception 2 Implied-contract exception 3 Covenant-of-good-faith and Tort based exceptions 3 Evaluation each of the eight (8) scenarios: 4 Recommend whistleblower policy 7 Fundamental Items to Whistleblower policy 8 References 10

Employment at will Doctrine
According to Clarkson, Miller, Jentz & Cross (2004, p.235), employment at will is a common law doctrine under which either party may terminate an employment relationship at any time for any reason, unless a contract specifies otherwise. Today this common law doctrine is widely used and applies in every state except Montana. However, state and federal statutes that govern employment relationships prevent the doctrine from being applied under certain circumstances. As such, employees who are wrongfully discharged may bring legal action against their employer based on violations of employment contract or statutory law. These state and federal statutes collectively are known as the exceptions to the employment at will doctrine that the courts adopted because of the harsh effects on employees.
Public-policy exception
According to Sentell & Robbins (2008), under the public-policy exception to employment at will, an employee is wrongfully discharged when the termination is against an explicit, well-established public policy of the State. For example, in most States, an employer cannot terminate an employee for filing a workers’ compensation claim after being injured on the job, or for refusing to break the law at the request of the employer, or for discriminatory reasons. The majority view among states is that public policy may be found in either a State constitution, federal or state statute, or administrative rule, but some States have either restricted or expanded the doctrine beyond this bound. The public-policy exception is the most widely accepted exception, recognized in 43 of the 50 States.
Implied-contract exception
According to the to Clarkson et al. (2004, p.648), some courts have recognized that an employee and employer have an implied contract. If employees are fired outside of the implied contract, the employee may take action for violation of contract. In some cases, the employer’s manual or personal bulletin may have the matter of policy. The matter of policy states that workers can only be fired for a good cause. If the employee knows of this policy, the court considers this as an implied contract between the employer and employee. Oral promises made by the employer may also be considered as an implied contract. If an employee is dismissed under different concepts than the ones that were promised, the employer can be held for violation of contract and can be held accountable for damages. This exception is recognized in 38 of the 50 States.
Covenant-of-good-faith and Tort based exceptions
According to Sentell & Robbins, only 11 States recognize the covenant-of-good-faith exception. The exception for a covenant of good faith and fair dealing represents the most significant departure from the traditional employment-at-will doctrine. Rather than narrowly prohibiting terminations based on public policy or an implied contract, this exception— at its broadest—reads a covenant of good faith and fair dealing into every employment relationship. It has been interpreted to mean either that employer personnel decisions are subject to a “just cause” standard or that terminations made in bad faith or motivated by malice are prohibited. Under the Tort exception, an employer is held liable for abusive discharge that results in emotional distress or defamation (Clarkson et al., p.648). Some courts have allowed employees to sue following false promises - the tort theory of fraud. For example, an employee can sue following termination that resulted from the employer inducing the employee to leave a lucrative job and making promises that cannot be kept while hiding important facts such as a merger that would result in the loss of the employee’s position.
Evaluation each of the eight (8) scenarios: 1. John, out of rage, posted a rant on his Facebook page criticizing the company’s most important customer. While many details about John’s rant are missing such as what specific language was used and who got a hold of it, it is clear that it was very unprofessional to say the least. As a result, John’s manager would be justified in firing him – meaning this is a situation that presents just cause for termination. Of course, under the Employment-at-will doctrine, the company would be able to legally terminate the relationship. Furthermore, there are not apparent breaches of implied-contract, tort law or public policy that would allow John protection under any of the doctrine’s exceptions. From a moral perspective, the manager should not have any issue terminating John unless if further details showed that the rant was about the client company pushing John and his company to break the law. In fact, firing John might be the only way to limit his company’s liability. The client might feel compelled to sue for defamation or breach of contract if internal or wrong information was leaked in the ranting. Because of the marketing power of social media, the client might feel uneasy about the rant and its ramifications on its reputation. Therefore, John should be fired in this case given the public nature and the consequences of his rant 2. Jim sent an email to his co-workers encouraging that they boycott the next meeting to protest a change in commission schedules and bonuses. Although public policy allows employees in many jurisdictions the right to unionize and negotiate with employers things like pay, pension and work conditions, legally, Jim can be fired for encouraging other salespeople to boycott the next meeting. In the employment-at-will doctrine there are not any exceptions that would protect Jim’s actions. Although Jim could easily be fired for promoting misconduct, the company should not fire him. Instead, the manager should have a talk with Jim and try to take his feedback and in return make things better if possible. If Jim decides to repeat his actions in subsequent times, then a firing would be justified. To limit liability, the manager should think about going back to the old commission schedules and consider giving bonuses to other people. 3. Ellen started a blog to protest the CEO’s bonus, stating that no one below director has gotten a raise in two years. She also rendered her bosses as “know-nothings” and “out-of-touch.” Ellen can be fired legally according to the employment-at-will doctrine. In this scenario, Ellen can be protected by the implied contract or tort theory exceptions – this is only if there were oral promises made about either the discharge policy or about the bonuses to employees. On the other hand, making insults against her bosses is unprofessional and provides just cause for her employer to terminate the relationship. To limit tort liability, the employer should be fair in their allocation of bonus distribution and work to establish a better working environment for its employees. However, given the public way that Ellen pursued (the blog) in airing her grievances, she should be fired especially because of the way it may affect the company’s public reputation, stock and even future earnings. 4. Bill has been using his BlackBerry issued by the company to run his own business. Under the employment-at-will doctrine, Bill can be fired legally. And there are no exceptions that would protect him because this was a case of misuse of company resources. If he’s fired, he should also be forced to pay back the portion of the phone bill that was unrelated to his job. However, in order to avoid any liability for wrongful discharge, the company should put restrictions on the employees’ phones so they could only make calls adhering to work only or have signed agreements on the record for proper use – this would set the expectations and limitations clearly for all to see. Although the company can do so, Bill should not be fired especially if it is a first offense. The company should instead warm him, make him pay the personal use and move on. A good reason for not firing is the time and money it will take to replace Bill, which is probably more costly than the phone charge incurred from the personal use. 5. The secretaries in the accounting department started dressing in black-and-white stripes to protest a memo announcing that the company has installed key logger software on the company’s computers. Morally, it would not be right to fire the secretaries for protesting about something they felt strongly about. The question is, if the employees did not give their opinion and protest about things they felt were wrong then how would the company get better? According to the employment-at-will doctrine, the secretaries can be fired legally. Although if there are any manuals or policies in place that address dress code, the secretaries may use the implied-contract exception as protection against wrongful discharge. Protesting the company’s decisions through a tame action like this does not hurt the company’s image, reputation or more importantly bottom line per se. Therefore, the secretaries should not be fired. Managers can choose to ignore the fad or address it through meetings that explain and justify the company’s position on the matter. If the secretaries are breaking the dress code or other policies, they should be reminded to stay in compliance with those policies with a goal of allowing the employees to express their opinions as long as it does not hurt the company. 6. After sending a criticizing email to a customer (from the company’s computer), Joe was disciplined for his actions. Joe then threatens to sue the company for invasion of privacy. Joe can be fired legally, although, does he know what he did was wrong? As human beings, we make mistakes, occasionally get upset, and do things we do not really mean at times. There are two things someone could do in these situations where they made a mistake. Either they could be humble and apologize for their actions and admit they made a mistake or they could be arrogant and pretend like the opponent is wrong. It may have been morally wrong to look at his email but legally Joe has no right to privacy on company computer. Joe should expect the company rummaging through his email and looking at his personal information that he decides to divulge in the process of using his work computer. The manager should take the time to explain to Joe that his right to privacy does not apply when using company resources. Joe should also apologize to the customer for any out of the line criticism while reminding him/her that he’s there to make him/her happy. With this in place, Joe should not be fired. 7. One of the department supervisors requests the manager’s approval to fire his secretary for insubordination. The manager soon finds out she has refused to prepare false expense reports for her boss. Preparing a false expense is probably not only breaking company policy but also some public policy as well. Therefore, the secretary will have protection under the public policy and contract theory exceptions. Refusing to break the law does not constitute subordination; therefore, the manager should not authorize the secretary’s firing. If anything, the manager should consider firing the supervisor and would be justified in doing so. To limit liability, the company should adapt the whistleblower policy. 8. Anna’s boss refused to sign her leave request for jury duty and now wants to fire her for being absent without permission. Jury duty is initiated through court summons that requires the recipient to show up by law. It would not be right for Anna’s boss to fire her for being absent without permission. She should have signed her request for jury duty leave because as a good citizen Anna must meet her civic duty. Legally, Anna has protections against wrongful discharge according to the employment at will doctrine’s public policy exception. The manager should not fire her for being absent; instead Anna’s boss should be counseled against doing something like this again.
Recommend whistleblower policy
I would recommend for the company to adopt the whistleblower policy. With it, I would recommend establish and communicating a solid code of ethics policy. Both would help prevent wrongdoings, such as the attempt to have a secretary fired as a result of refusing to break the rules. In most cases, employees become aware of the wrongdoing but decide not to report it because they fear the consequences. In placing a whistleblower policy, it will help instill a system in which employees will tell authority when they become aware of wrongdoing. Although, depending on whether the company wants to encourage whistleblowing or whether the company wants to discourage whistleblowing should help choose whether or not to instill the whistleblowing policy. For a company that is not willing to protect whistleblowers, it would not be a good idea for them to promote the whistleblowing policy. Most companies decide not to get too serious with the whistleblowing policy, which causes very little whistleblowing disclosures. Reports show that even though whistleblowers are helpful to keep companies in shape, often whistleblowers pay a personal or organizational price. I think companies should implant regulations to help protect the whistleblowers. If companies were to have regulations to protect whistleblowers from discrimination, identity protection, and the possibility of losing their jobs they would be more encouraged to whistle blow on someone’s wrongdoing.
Fundamental Items to Whistleblower policy
As mentioned before, employees are discouraged to file disclosures because of the fear that they’ll lose their job and the fear that their identity might be revealed. Every good whistleblower policy should have the following fundamental items: * Protect whistleblowers from losing their job: While there are federal and state statutes that protect employees who blow the whistle, the company should have a stated policy that provides assurances and guidance on how to properly expose wrongdoing. * Protect whistleblowers’ privacy: In addition to the fear of losing their job many employees are reluctant to expose wrongdoing because they fear being exposed to their colleagues and having their reputation dragged through the mud. Therefore, the company must commit to safeguarding the whistleblowers’ identity. * Establish an ethical corporate culture: Having a code of ethics that draws some clear cut lines in sand about wrongdoing and employee behavior, especially management, will go a long way in creating a trust environment for whistleblowers. Furthermore, it will embrace a culture around the company that obeys the law and maybe even go beyond it for a higher level of social responsibility and stewardship. Good ethics will also mean fewer chances for needing to blow the whistle.
In addition to these fundamentals, the company must examine and decide on its approach to ethical reasoning, such as duty-based (rights, religious) vs. outcome based (Utilitarianism). According to Clarkson, Miller, Jentz & Cross (2004, pg. 832), the utilitarianism concept is a philosophical theory in which the company would act upon a code of ethics. In a utilitarianism-based area, things are based on what is “right” and wrong instead of on what is legal or illegal. Therefore, the company would worry more about the outcome and how it will affect people. Specifically, the company would use the following in its decision making: (1) fortitude of who will be affected in the end, (2) whether it will affect people more negatively or positively, and (3) a choice of what will produce the most benefit for individuals. If this concept were in place, the company would not have many issues with illegal things going on in the company. The people in the company would worry more about the greater good for people rather than money alone, which usually the biggest motivator for wrongdoing in business.

References
Callahan, E., & Collins, J. (n.d.). Employees Attitudes Towards Whistleblowing: Management and Public Policy Publications. Ebsco Host . Retrieved January 25, 2014, from http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=de3e1dd3-aedb-443d-88c7-39a6e2c53776%40sessionmgr4001&vid=4&hid=105

Lee, G., & Fargher, N. (n.d.). Companies' Use of Whistle-Blowing to Detect Fraud: An Examination of Corporate Whistle-Blowing Policies. Ebsco Host. Retrieved January 25, 2014, from http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=b522f9c9-08b2-4bf0-bddf-80d987ee5780%40sessionmgr113&vid=4&hid=105

Zachary, M. (n.d.). Labor Law for supervisors . Ebsco Host . Retrieved January 25, 2014, from http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=0fc35f62-e5c1-422c-8b7b-9e9c995907eb%40sessionmgr4005&vid=5&hi

Sentell, E., & Robbins, R. (2008). EMPLOYMENT AT-WILL. Journal Of Legal, Ethical & Regulatory Issues, 11(1), 1-15.

Clarkson, K. W. (2004). West's business law: text, cases, legal, ethical, international, and e-commerce environment (9th ed.). Mason, Ohio: Thomson/South-Western/West.

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...Employment-At-Will Doctrine Student Name: Muhamed F Aref Professor Name: Agustine Weekley Course Name: Law and Ethics in the Business Environment Date: 11/09/2014 The doctrine of employment at will emerged as the predominant rule in wrongful discharge cases in America during the latter part of the 19th century. This doctrine states that the business should have the freedom to discharge or retain employees at will for good cause, for no cause, or even for bad cause, without thereby being guilty of an unlawful act. It is a right which an employee may exercise in the same way, to the same extent, for the same cause or want of cause as the employer. In essence, the doctrine recognizes that the wage owner of his labor services, and the business the full owner of his capital. Each is free to exchange on whatever terms they see fit. Thus, the doctrine of employment at-Will is well established in the American legal system. I recent years, however, this doctrine has been eroding. Many employers now find that the legal environment relative to the right to fire is confusing and ripe with potential liability. In essence, employment at will a term that is music in the ears of most employers is under attack. During the early 19th century, the United States adopted the English rule as part of their common law. By the late 1800’s, however, most jurisdictions had abandoned this principle. Reasoning was that restrictions on terminating employment were inconsistent with the laissez-faire...

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At-Will Employment

...How is employment-at-will applied in your organization or in one with which you are familiar? Employment-at-will is defined as “an employment relationship where there is no contractual obligation to remain in the relationship; either party may terminate the relationship at any time, for any reason, as long as the reason is not prohibited by law, such as for discriminatory purpose.” (Bennett-Alexander, D. & Hartman, L. 2007). The employment-at-will is actually a concept that my current company speaks about weekly to our employees. I currently work for a staffing and recruiting firm that employs candidates in engineering, nursing, administrative, and IT roles in the state of Michigan. Discussion on this topic is weekly due to what my company’s actions are. Since we do employ candidates, we have to discuss the at-will scenario. This does not just apply to our candidates we staff out but to our recruiters and staff members as well. We are employed at the employer’s discretion and have a strict policy on our employment. If goals and matrix are not met, there is a disciplinary action. This results in counseling with team leaders and managers. The first round is verbal consult which describes what is going on. If the matrix is still not achieved, a written warning will than issued allowing the recruiter or employee to have at least 30 days to improve. After the time frame, if the matrix is not met and no movement has taken place, the employee is than let go. Within our organization...

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At-Will Employment

...At-Will Employment Kimberly Money University of Phoenix Thomas Kershaw HRM546 February 22, 2010 At-Will Employment Employment at will states “employment relationships for an indefinite term can be terminated at any time for good cause, for bad cause, or for no cause at all” (Arkansas Employment, 2010). The exceptions to this rule are: Union Contracts Written employment agreements federal and state anti-discrimination statutes statutes protecting employees called for jury duty statutes protecting employees who vote Fair labor Standards Act Occupational Safety and Health Act Employee Retirement Income Security Act Other statutory exceptions giving employees certain rights under certain circumstances. At my organization they make it very clear before anyone accepts employment that they are an at-will employer. One thing that the company makes sure happens at the start of employment is that no time frame is mentioned when discussing salary that exceeds 2 weeks, and our handbook has the statement that this is not a contract on every page. When discussing this with our human resource manager, he stated that because of the precautions they take from the beginning, exceptions have never had an effect on the company. Independent Contractors vs. Employees Our company uses independent contractors in two different areas of the organization. Our construction crews are all outside companies...

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