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46 Cards in this Set
- Front
- Back
Employment relationships are
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agency relationships
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agrees to represent or act for the principal
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agent
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has the right to control the agent
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principal
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must act for the benefit of the principal only.
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agent
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The agent acts on behalf of the principal. involves trust and confidence.
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fiduciary relationship
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are not employees because the employer has no control over the details of the performance.
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Independent contractors
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express (oral or written words) or implied (by conduct) – authority to act as a parking valet.
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Agency by Agreement
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principal approves a contract that a non-agent has entered into for the principal.
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Agency by Ratification
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is stopped from denying liability if principal causes a third party to reasonably believe that the person is his or her agent.
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Agency by Estoppel
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legal duty to support your family members/spouse
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Agency by Operation of Law
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- there is a fiduciary duty for utmost good faith and, if it is breached, there can be recovery for money damages, termination of the agency relationship, injunction and an accountin
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Duties of Agents and Principals
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agent agrees to use reasonable diligence and skill in performing the work.
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Performance
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agent is required to notify the principal of all matters that come to his or her attention regarding the subject matter of the agency.
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Notification
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the agent has the duty to act solely for the benefit of the principal and not in the interest of the agent or a third party. Agent must not reveal confidential information obtained from principal. Agent cannot represent two principals in the same transaction unless there is consent.
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Loyalty
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agent must follow all lawful and clearly stated instructions made by the principal. During emergency situations, agent can deviate
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Obedience
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agent must account for all property and money received and paid out on behalf of the principal. No intermingling of funds. All gifts received are gifts of the principal
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Accounting
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Agents duty to the principal
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PNLOA
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timely payment to agent for services rendered. If no amount stated, customary compensation.
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Compensation
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principal must reimburse agent for necessary expenses. If principal fails to perform on a contract, principal must compensate agent for cost of defending a lawsuit
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Reimbursement and Indemnification
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principal has a duty to cooperate with the agent and assist with the performance of agent=s duties.
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Cooperation
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principal must provide a safe working environment, equipment and conditions and has a duty to inspect
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Safe Working Conditions
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(can be either actual (express or implied) in clear, direct and definite terms or implied)
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Agent’s Authority
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identity of principal is known to third party at time of contract. (principal liable)
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Disclosed principal
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third party knows the agent represent a principal but does not know the identity of the principal. (principal liable if agent hasn=t exceeded his authority.
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Partially disclosed principal
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third party doesn=t know that the agent is acting as an agent. (agent and principal liable.)
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Undisclosed principal
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Agent is liable for his or her own torts and crimes.
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T
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Principal is liable for misrepresentations (torts) that the agent makes whether fraudulent or by accident.
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T
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the principal is not liable for physical harm caused to a third party by the negligent acts of an independent contractor except for exceptionally hazardous activities
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Liability for independent contractor’s torts
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agent liable for own crimes even if within the scope of employment unless the principal participated.
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Liability for agent’s crimes
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- federal law - examples - children under 14 can deliver newspapers,
work for parents, entertainment and farm. Children 14-15 can work limited hours. Children 16-18 can work more hours but not in a hazardous job |
Child Labor
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employees are paid a minimum wage and time and one-half for hours worked over 40 hours.
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Wages and Hours
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C. No overtime for executives, administrative employees or professional employees and outside salespersons
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t
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general duty to keep the workplace safe.
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Occupational Safety and Health Act (OSHA)
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the Department of Labor makes inspections, makes sure that ladders and railings are safe, while the Department of Health and Human Services does research on safety and health problems.
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Enforcement Agencies
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employer cannot fire an employee who files a complaint or who refuses to work in a high-risk area if bodily injury or death might result.
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Procedures and Violations
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an employer can purchase insurance from a private insurer or a state fund to pay worker’s compensation benefits for claims by employees or an employer may be self-insured.
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Worker=s Compensation
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Employers and employees contribute to FICA taxes.
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Social Security
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is a medical insurance program for people 65+ or for people who are disabled.
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Medicare
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employers can start a supplemental retirement plan under ERISA.
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Private Pension Plans
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employers pay a FUTA tax to cover unemployment compensation to eligible individuals
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Unemployment Insurance
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prohibits the elimination of a worker=s medical, optical or dental insurance upon the voluntary or involuntary termination of the worker=s employment
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COBRA
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employers with 50+ employees must provide employees up to 12 weeks of unpaid family or medical leave during any 12 month period.
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Family and Medical Leave Act (FMLA
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45% of US corporations engage in intrusive employee monitoring practices such as e-mail, voice mail, telephone, computer keystrokes, internet use, video taping job performance, etc.)
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Electronic Monitoring in the Workplace
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are prohibited. But, there are exceptions
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Lie-detector Tests
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in the interest of public safety, many employers require their employees to submit to drug testing
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Drug Testing
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(cannot test for future health problems.)
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Genetic Testing
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