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Agency

Agency. The key to . . . something. Agency is a relationship. Consent shown to one person (agent) Act on behalf of the other (principal) Agent is subject to control by principal Agreement subject to consent by agent Principal thus agrees to be responsible for acts of agent Contracts Torts.

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Agency

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  1. Agency The key to . . . something

  2. Agency is a relationship • Consent shown to one person (agent) • Act on behalf of the other (principal) • Agent is subject to control by principal • Agreement subject to consent by agent • Principal thus agrees to be responsible for acts of agent • Contracts • Torts

  3. Respondeat superior “Let the boss answer”

  4. Principals act through agent • Principal may do almost anything through an agent • Some principals may only act through agents • Corporations • LLCs • Cooperatives • You get the idea

  5. Relationship depends on consent • Principal’s consent • Express or implied • Lets principal have control over agent • Does not always depend on intent of parties • Motive of agent, for individual actions • Dealings with third parties

  6. Consent may be inferred from conduct • Ratification by principal • Approval after the fact • Accepting benefits • Actions • Course of dealing • Circumstantial evidence

  7. Principal only responsible for acts done within authority of agent • “Scope of authority” • Express • Explicit delegation of authority • Implied • To do what is necessary of express authority

  8. Apparent authority • Not “real” authority • Actions outside scope of authority • Actions accepted by principal • Third parties rely on past dealings • Reliance on what looks like authority

  9. Principal’s liability • Acts done within scope of authority • Intent to benefit principal • Unauthorized acts that are ratified • Not disavowed • Benefits retained

  10. Employment Law

  11. Issue number 1: Who is an employee?

  12. Why do we care? • Employees have certain rights • Including tax withholding • Non-employees (contractors) have rights through agreement • Employers mischaracterize employees as contractors • Not just temporary vs. permanent

  13. Different, but similar, definitions • State common-law • Depends on control over worker • US Department of Labor • “Is this worker’s principal source of income?” • Wage and hour laws • Pensions and benefits • Not most common test • DOL not proactive • Depends on complaints

  14. The most commonly used definition is from your friends:

  15. IRS tries to make sure employees are not wrongly called contractors • Unpaid withholding • “Contractors” pay too much • Proactive • Does not rely on complaints • Gets too many 1099 forms • Test developed • Series of factors looked at

  16. IRS factors fall into three groups • Behavioral control • Financial control • Relationship

  17. Behavioral control • When/where to work • Tools equipment to use • Where to purchase • Tools • Supplies • Who does what work • Order/sequence to follow • Whom to hire to assist

  18. Financial control • Unreimbursed expenses • Extent of worker’s investment • Marketing of worker’s services • How/when worker is paid • Profit or loss

  19. Relationship • Written contracts • Employee benefits • Insurance • Pension • Permanent/indefinite • Services essential part of business • What does employer sell to public?

  20. All factors are considered; no one is the most important.

  21. Internships

  22. Rules for unpaid internships with private employers • Training similar to educational environment • Experience for benefit of intern • Intern does not displace regular employees; works under close supervision • No immediate advantage to employer • Intern not necessarily entitled to job at end of internship, and • Employer and intern understand intern is unpaid

  23. Exceptions • Government agencies • Non-profits • Charitable volunteers

  24. Rights of employees It’s not an oxymoron.

  25. Minimum wage • State (Minnesota) • $6.15 per hour • If employer has annual receipts <$625,000, $5.25 per hour • No tip credit • Federal • $7.25 per hour • Tip credit • More than $30 per month in tips • Must pay at least $2.13 per hour

  26. If there is a conflict between state and federal minimums, higher wage controls

  27. Overtime pay • All “non-exempt” employees • 1 ½ times regular hourly rate for every hour over 40 in a week • Week=168 consecutive hours • No averaging for multiple week in pay period • No lump-sum payment • No waiver • 1 ½ times employee’s regular pay, not minimum

  28. Non-exempt employees • Entitled to overtime • All employees presumed non-exempt • Exemptions must be proven • Any employee paid <$455 per week

  29. Exempt employees • Not entitled to overtime • Not covered by minimum wage • Employee must be paid a salary • At least $455 per week • Focus on job description • Primary duties of job

  30. Categories of exemptions • Executive • Administrative • Professional • Learned • Creative • Computer • Outside sales

  31. Learned professional • Primary duty is work requiring advanced knowledge • Discretion and judgment • Knowledge in a field of science or learning • Knowledge acquired through advanced education

  32. Creative professional • Primary work requires invention, imagination, originality, or talent • Recognized field of creative endeavor

  33. Worker’s compensation • Covers all employees • Absolute liability for workplace injuries • Injury arises out of employment relationship • No showing of fault • No right to sue for injuries • No common-law defenses for employer • Schedule of benefits

  34. Worker’s comp benefits • Medical expenses • Past • Future • Lost wages • Percentage • Defined period of time • Payment for loss of limb/death/disability • According to schedule • Retraining

  35. OSHA • Occupational Safety and Health Act • Workplace free of identified hazards • Does not give a right to sue • Evidence of negligence

  36. Unemployment insurance

  37. Unemployment insurance • Funded by employers • Premium based on employer’s experience • Covers employees who lose their jobs • No fault of their own • Good cause attributable to employer • Ineligible • Voluntary quits • Fired for misconduct

  38. Benefits • Percentage of wages • Based on yearly average • Paid for thirteen weeks • Other assistance • Retraining • Job search help • Employee must show good faith efforts to get a job

  39. Employee leave • Time off • Unpaid • Continue insurance • Keep seniority, if possible • Certain obligations/activities • Military service • Jury duty • Voting (Minnesota, not in Wisconsin) • School activities

  40. Family-medical leave State Federal Federal employees Employers with more than 50 employees at one site Birth, adoption, serious medical condition of self or family member Twelve weeks in one year • State employees • Employers with more than 21 employees • Birth or adoption of a child only • Six weeks in one year • May be added to sick time or vacation time • Cannot be combined with federal time

  41. Drug-alcohol testing • Required for some jobs • Any employer may require • Written policy • Analysis done by licensed lab • Positive results confirmed by retest

  42. Miscellaneous rights • No polygraph testing • Wages paid at least monthly • Paid within 24 hours of demand, if you’re fired • Rest breaks • See your personnel file • Every 6 months, or • Once after you leave • Make request in writing • Explain disagreements in writing • Disagreement must be included in file

  43. Not rights

  44. Contrary to what you may think, there is no absolute right to: • Holidays • Vacations • Fringe benefits • Severance pay • Notice before firing • Privacy • Employer may monitor work-related calls • May monitor other areas for security

  45. Employment at Will “They can’t fire you for . . .”

  46. Yes, they can. • General rule • Employees may be hired or fired for any reason or no reason • Assumed that employees are at will • Exceptions to rule are limited

  47. Contract • May prevent firing except for good cause • Collective bargaining agreement • Sets out steps for discipline • Civil service jobs • Academic tenure • Employment handbooks • Older cases found handbooks were contracts • Handbooks rewritten by now

  48. Public policy • Some law forbids firing for certain reasons • Policy that we want to encourage employees • Retaliation • Whistleblowers • Cooperate with investigation • Worker’s compensation claims

  49. Good faith/fair dealing • Recognized in some states • Forbids firing except • Just cause • Not for spite or malice

  50. Discrimination

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