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46 Cards in this Set

  • Front
  • Back
Employment relationships are
agency relationships
agrees to represent or act for the principal
agent
has the right to control the agent
principal
must act for the benefit of the principal only.
agent
The agent acts on behalf of the principal. involves trust and confidence.
fiduciary relationship
are not employees because the employer has no control over the details of the performance.
Independent contractors
express (oral or written words) or implied (by conduct) – authority to act as a parking valet.
Agency by Agreement
principal approves a contract that a non-agent has entered into for the principal.
Agency by Ratification
is stopped from denying liability if principal causes a third party to reasonably believe that the person is his or her agent.
Agency by Estoppel
legal duty to support your family members/spouse
Agency by Operation of Law
- 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
Duties of Agents and Principals
agent agrees to use reasonable diligence and skill in performing the work.
Performance
agent is required to notify the principal of all matters that come to his or her attention regarding the subject matter of the agency.
Notification
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.
Loyalty
agent must follow all lawful and clearly stated instructions made by the principal. During emergency situations, agent can deviate
Obedience
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
Accounting
Agents duty to the principal
PNLOA
timely payment to agent for services rendered. If no amount stated, customary compensation.
Compensation
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
Reimbursement and Indemnification
principal has a duty to cooperate with the agent and assist with the performance of agent=s duties.
Cooperation
principal must provide a safe working environment, equipment and conditions and has a duty to inspect
Safe Working Conditions
(can be either actual (express or implied) in clear, direct and definite terms or implied)
Agent’s Authority
identity of principal is known to third party at time of contract. (principal liable)
Disclosed principal
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.
Partially disclosed principal
third party doesn=t know that the agent is acting as an agent. (agent and principal liable.)
Undisclosed principal
Agent is liable for his or her own torts and crimes.
T
Principal is liable for misrepresentations (torts) that the agent makes whether fraudulent or by accident.
T
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
Liability for independent contractor’s torts
agent liable for own crimes even if within the scope of employment unless the principal participated.
Liability for agent’s crimes
- 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
employees are paid a minimum wage and time and one-half for hours worked over 40 hours.
Wages and Hours
C. No overtime for executives, administrative employees or professional employees and outside salespersons
t
general duty to keep the workplace safe.
Occupational Safety and Health Act (OSHA)
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.
Enforcement Agencies
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.
Procedures and Violations
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.
Worker=s Compensation
Employers and employees contribute to FICA taxes.
Social Security
is a medical insurance program for people 65+ or for people who are disabled.
Medicare
employers can start a supplemental retirement plan under ERISA.
Private Pension Plans
employers pay a FUTA tax to cover unemployment compensation to eligible individuals
Unemployment Insurance
prohibits the elimination of a worker=s medical, optical or dental insurance upon the voluntary or involuntary termination of the worker=s employment
COBRA
employers with 50+ employees must provide employees up to 12 weeks of unpaid family or medical leave during any 12 month period.
Family and Medical Leave Act (FMLA
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.)
Electronic Monitoring in the Workplace
are prohibited. But, there are exceptions
Lie-detector Tests
in the interest of public safety, many employers require their employees to submit to drug testing
Drug Testing
(cannot test for future health problems.)
Genetic Testing