LEGL 217 Chapter Notes - Chapter 34: Fair Labor Standards Act, Whistleblower, The Employer
24 Jan 2019
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Unless it would violate an employee"s statutory or contractual rights, either the employee or the employer may terminate the relationship at any time. Some courts have held that there is an implied contract in an employer-employee relationship and the employee may not be fired outside of it. If a company states in their handbook that they only fire for good cause this is a reasonable expectation of the employee and form an implied contractual obligation. Some states have held that all employment contracts contain an implied covenant of good faith and if an employee is fired without cause it is a breach of the covenant and violation of the contract. Abusive discharge procedures may result in a lawsuit for intentional infliction of emotional distress or defamation. Some courts allow for workers to sue for fraud when an employer makes false promises to a prospective employee.
