Week 1 Discussion

The Evolving Employee-Employer Relationship

Until the nineteenth century, the employer-employee relationship had been one-sided, with employees having little voice in the establishment of wages or working conditions. “Employment-at-will” was the standard, meaning the employer could fire or hire employees at will.

Eventually, starting in the mid-1800s, courts began granting labor unions the right to organize and bargain for better pay and terms of employment. Through a series of court decisions, a “common law” developed, which began to redefine the employment relationship.

Federal and state legislation began to follow the courts in the early 1900s. The Railway Labor Act (1926), Social Security Act (1935), National Labor Relations Act (1935), and Fair Labor Standards Act (1938) are examples of a shift to a more balanced relationship between workers and employers. Pay, conditions, termination, discrimination, retaliation, and many other aspects of the employer-employee relationship have continued to evolve over the years.

The employment-at-will doctrine has evolved from its traditional definition (an employee can be fired at any time, for any reason, or for no reason at all) to a doctrine replete with exceptions. The most notable exception is discrimination, which will be addressed in detail in Week 2.

Employment contracts, both express and implied, have emerged as a major exception to the at-will doctrine. An express employment contract is an agreement between employee and employer, usually in writing, which spells out the terms of the relationship. Implied contracts are those which can be found by the courts to be agreements between the parties even though no formal agreement exists.

The best example of an implied employment contract is an employee handbook or a policy manual. Elements found in a handbook will usually be considered an agreement between employer and employee. This is particularly true with regard to terminations if the handbook specifies a procedure for firing of employees.

Labor Movement—Facts and History

According to Cihon, P. J., & Castabnera, J. O. (2017),

Review each button to learn more. 1760 to 1840

The industrial revolution creates a large class of employee workers—all power lies in the hands of employers.

Early- to Mid-1800s

Employees begin to band together into labor unions and receive negative treatment from the courts—unionization treated as an illegal act.

1842

The first US case is filed to decriminalize union organizing—Commonwealth v. Hunt, 44 Mass. (4 Met.) 111 (1842). In Commonwealth, the court determined that unionizing and applying pressure on employers through organized effort was not an illegal act.

1908

Employers Liability Act is enacted to protect and compensate railroad workers injured on the job.

1926

Railway Labor Act creates a system of negotiation, mediation, and arbitration.

1933

President Roosevelt initiates the New Deal, a series of federal programs in response to the Great Depression.

1935

• Social Security Act creates a provision for pensions to retired workers.
• National Labor Relations Act (NLRA) creates rules for union negotiation with employers.

Reference: Cihon, P. J., & Castabnera, J. O. (2017). Employment and labor law (9th ed.) [VitalSource digital version]. Boston, MA: Cengage Learning.

Additional Materials

From your course textbook, Employment and Labor Law, read the following chapters:

• First the Forest, Then the Trees: An Overview of Employment and Labor Laws
• Employment Contracts and Wrongful Discharge

From the South University Online Library, read the following articles:

• An Empirical Assessment of the Contract Based Exception to the Employment-At-Will Rule
• Ensure Handbook Asserts At-Will Employment