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Employment-at-Will and Human Resources Situations

In: Business and Management

Submitted By swimpegasus
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Employment-at-Will & HR To The Rescue
LEG500
Professor Kapalko
2 February 2014

Summarize the employment at will doctrine and evaluate each of the 8 scenarios.

The employment at will doctrine is a common-law rule that an employment contract of indefinite duration can be terminated by either the employer or the employee at any time for any reason; also known as terminable at will. Traditionally, U.S. employers have possessed the right to discharge their employees at will for any reason, be it good or bad. The "at-will" category encompasses all employees who are not protected by express employment contracts that state that they may be fired only for good cause. "Good cause" requirements are typically a part of collective bargaining agreements negotiated by employee unions; nonunion workers rarely have this form of protection. The at-will doctrine also does not apply to contracts for a specified term, such as an employment contract that contemplates the employee providing service for a expressly designated number of years. In the following scenarios, the company’s human resources team must take action and decide whether to fire several employees for harmful actions. The scenarios are:
John posted a rant on his Facebook page in which he criticized the company’s most important customer. In this scenario, John has publicly criticized the company’s most important customer, which might lead the customer to suspend all business with the company. Due to this customer being the most-profitable account for the company, John is greatly putting the company at risk, and to do some damage control and prevent the customer from leaving, the company must give this employee a stop and desist order to remove the rant from Facebook. In this case it would be better not to fire John as to set him on course and have been be the lead “apologist” for this transgression would be better than firing him and sending a loose cannon out. A policy will be put in place that any transgressions against the company or a customer are grounds for an immediate firing. John will also be temporarily demoted.
Jim sent an email to other salespeople protesting a change in commission schedules and bonuses and suggesting everyone boycott the next sales meeting. With respect to the second scenario, Jim is looking for rectification of a policy that affects everyone and his tactic would only work if everyone were truly against the new commission and bonuses schedule. In order to prevent such chaotic and negative behavior, a policy will be put in place for grievances with commission and bonus schedules to be aired to HR as soon as they are laid out. If enough people write in to HR, a quick office meeting will take place to communicate the issue. Also, if any employees call for a boycott before speaking with a member of HR and trying to resolve the issue reasonably, they will be written up or let go.
Ellen started a blog to protest the CEO’s bonus, noting that no one below director has gotten a raise in two (2) years and portraying her bosses as “know-nothings” and “out-of-touch”

In this scenario, social media is once again at play and the company’s online reputation is at stake. In Ellen’s case, she chose to air out highly private corporate matters on her blog. “An employee blog or post that reveals company trade secrets, slams a company product, or threatens or harasses other employees can present an unmitigated disaster for a company.” Writes Lisa Guerin J.D. for “inappropriate disclosures, remind employees that the company may have a legal duty to keep certain facts confidential, such as information on stock offerings. If employees have concerns about whether something they plan to post falls into this category, they should raise the issue with a manager.” Thus the new social media policy will extend to blog posts, prohibiting harassment, protecting trade secrets, (and so on) whether an employee makes these statements online or in the bricks and mortar world. As an employee, Ellen will be tasked to sign this new policy, take the post down, and will then be fired.
Bill has been using his company-issued BlackBerry to run his own business on the side.

In the code of conduct, a “use of company resources” policy will prohibit employees from using the company's equipment or network to write or publish personal content, or from doing so on company time. Personal content includes private messages to anyone (even co-workers) and certainly lengthy email communications or monitoring of a separate business entirely. Bill will be given a written warning to cease any personal use on the BlackBerry and he will be reminded that anything not related to his day job must be kept out of the office, including his side-project.
It will also be important to note whether his “business on the side” can in anyway compete with the employing company. If so, a non-compete policy, prohibiting any competitive work during the course of employment with the company will also be instituted for him and the rest of the office.
The secretaries in the accounting department decided to dress in black-and-white stripes to protest a memo announcing that the company has installed keylogger software on all company computers.

Depending what type of keylogger software is being used, the secretaries tiff might be an issue to look into. If the keylogger logs employees’ personal passwords the software will have to be replaced with another monitoring software that focuses on external sites and communications. The employee has the right to check their bank statement in a rare case and their private passwords should not be logged.
After being disciplined for criticizing a customer in an email (sent from his personal email account on a company computer), Joe threatens to sue the company for invasion of privacy.

All employees are aware of the monitoring software tracking their communications through their office computers. Also, any communications with company customers are fair grounds for the company to search. According to PrivacyRights.org (based on Smyth VS Pillsbury) “If an electronic mail (e-mail) system is used at a company, the employer owns it and is allowed to review its contents. Messages sent within the company as well as those that are sent from your terminal to another company or from another company to you can be subject to monitoring by your employer. This includes web-based email accounts such as Gmail and Yahoo as well as instant messages. The same holds true for voice mail systems. In general, employees should not assume that these activities are not being monitored and are private. Several workplace privacy court cases have been decided in the employer's favor.” The threat would be recorded in his file, and any further incident would leave him in jeopardy of losing his position with the company.
One of the department supervisors requests your approval to fire his secretary for insubordination. Since the secretary has always received glowing reviews, you call her into your office and determine that she has refused to prepare false expense reports for her boss.

At this point the department supervisor would be called back in and a thorough investigation on previous expense reports will be conducted. If anymore evidence is found that he falsified previous expense reports he will be let go.
Anna’s boss refused to sign her leave request for jury duty and now wants to fire her for being absent without permission.

In most states, not only is jury-duty a justifiable absence, but those absent days must be paid for as well. Anna’s boss is extremely out of line and he will be written up for failure to follow state laws concerning jury duty. Anna’s missed days will also be compensated for through the accounting department. Finally, policy will be clarified for jury duty off-days.

Take a position on whether or not you would recommend to the CEO that the company adopt a whistleblower policy. Support the position.

Considering that two very grievous incidences occurred via social media: the company’s best customer was criticized on the most popular social network AND the pay rates of the top level executives in the company was scrutinized via an employee blog, a whistleblowing policy must certainly be put into place. There are no negatives to having a whistleblowing policy, especially the way this policy will be laid out. The company needs to assert itself as a respectable group of people and this whistleblower policy is aimed to get employees to voice their negative findings to the appropriate people in the company before going public with any information.
“Good whistleblower policies are designed to give employees and volunteers a chain of reporting if they become aware of wrongdoing within the organization” (Pippett, 2010) and the company’s policy will do just that.

Justify at least 3 fundamental items that should be included in a whistleblower policy. Provide a rationale for your selection of each of the three recommended items.

Overall, it is of extreme importance to the company to have a whistleblowing policy established to prevent having potential problems reported. The policy will be for the good of the company as well as employees. To begin, the policy should have: 1. The expectation that employees and volunteers report concerns. a. No retaliation for reporting, so long as the person reporting is acting with a good-faith belief there may be a problem. 2. Confidentiality. b. It will address the possibility of reporting anonymously, while explaining that doing so may hamper an adequate investigation. 3. How the company will investigate any reported violations. 4. How you'll inform employees and volunteers of the whistleblower policy and reporting procedures.
And last but not least, a high level executive will be tasked with becoming the “go-to person” to investigate any major reports so that things can get acted on quickly.

References
Gleeson, W., & Minier, J. (2003). Why Companies Need to Adopt Whistleblower Policies Now. Banking & Financial Services Policy Report, 22(1), 1.

Lisa, G. (2012). Employee posts on facebook, myspace, twitter, and blogs. In Nolo - Law for All. Retrieved from http://www.nolo.com/legal-encyclopedia/employee-posts-facebook-myspace-twitter-32954.html

Massachusetts Jury System, Compensation. (2011). (M.G.L. Chapter 234A, Section 47). Retrieved from website: http://www.mass.gov/courts/jury/compensa.htm

Pippett, C. J. (2010). Consider Whistleblower Policy Protections. Credit Union Magazine, 76(9), 56-59.

Workplace privacy and employee monitoring. In (2014).Privacy Rights Clearinghouse. Privacy Rights Clearinghouse. Retrieved from http://www.privacyrights.org/workplace-privacy-and-employee-monitoring…...

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