Law531_Wk4_Legal_Risk_and_Opportunity-Newcorp

Legal encounter 1: Pat Grey was hired as a manager by Newcorp and relocated moving his family over 300 miles away. Unexpectedly, Pat was told it was not working out and he would let go with 30 days severance pay. Pay was not advised of any performance problems on the job, so this came as a surprise. Pat was aware he signed an understanding indicating the company observed employment at will, however, Pat was provided a personnel manual which stated the following: “If the job performance of an employee is unsatisfactory, the employee will be notified of the deficiency and placed on a Corrective Action Plan (CAP). If the employee performance does not improve to a satisfactory level within the specified period of time, termination will follow” (University of Phoenix, 1998-2008). pg13). Employment at will, according to The Free Dictionary is “a common-law rule that an employment contract of indefinite duration can be terminated by either the employer or employee at any time for any reason” (para.1). Pat alleges he is the victim of wrongful termination. Pat feels the power of the at will understanding he signed, is limited due to the provision in the personnel manual which implied the existence of a contract. “Personnel manuals have been held to constitute, both expressly and impliedly, employee contracts, or to become part of the employee contracts when they are given to employees at the outset” (Jennings, 2006, p.727). To avoid a costly litigation Newcorp could possibly lose, and to avoid the threat of bad publicity, I recommend Newcorp revise the personnel manual to include a waiver indicating the guidelines and policies included in the personnel manual by no means create contract rights. The revised manual should be delivered to every Newcorp employee. Furthermore, I recommend a review of Pat Grey’s performance, and if appropriate place Pat on a corrective action plan. The addition of the waiver in the manual will eliminate any suggestions of implied contract or contract rights, and would allow Newcorp the freedom for future termination of at will employees. Legal Encounter 2: Sam was a supervisor at Newcorp who became romantically involved with one of his employees, Paula. Paula ended the affair, but Sam did not want the relationship to end and continued to exhibit unwelcomed behaviors, which Paula rejected and advised him to stop. Sam indicated the breakup impacted Paula’s work interest and performance. Paula requested a transfer to another department, which Sam rejected claiming a company policy regarding chemicals and pregnant women. Title VII of the Civil Rights Act, according to Jennings, “prohibits discrimination in all areas of employment on the basis of race, color, religion, national origin, and sex (including pregnancy, childbirth, or abortion” (2006, p.789). Sam is guilty of sexual harassment, and sexual discrimination. According to the EEOC (n.d.) “unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly or implicitly affect an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment” (para. 2). Sam continually made unwelcomed behaviors, and Sam lied about Paula’s performance. Paula’s daily activities and work environment became so hostile Paula requested a transfer which. Sam denied indicating a company policy existed regarding the chemicals used and birth defects, therefore, violating the Pregnancy Discrimination Act. According to Jennings, “refusing to hire or promote on the basis of pregnancy or family plans” (2006, p.805), is discrimination. Newcorp could be found liable under Title VII for sexual harassment and sexual discrimination. If the allegations are true, I recommended Sam be dismissed from Newcorp. An immediate review of Newcorp’s policies on Title VII of the Civil Rights Act, specifically sexual harassment and sexual discrimination, should be mandated for all employees, and steps should be taken to ensure an annual review on these policies for all employees. Lastly, I would recommend Paula be given the choice to stay in her current department or transfer to another department as requested. Newcorp has the obligation to inform Paula of the risks in order to make an informed decision, but the decision to transfer lies in Paula’s hands. References AllBusiness ((1999-2009)). Suing for breach of contract. Retrieved February 9, 2009, from http://www.allbusiness.com/legal/litigation/4141-1.html EEOC (n.d.). Sexual Harassment. Retrieved February 16, 2009, from http://www.eeoc.gov/types/sexual_harassment.html Jennings, M.M. (2006). Business: It's Legal, Ethical, and Global Environment.[University of Phoenix Custom Edition e-Text]. Mason, OH: Thomson. Retrieved January 20, 2009, from University of Phoenix, LAW531- https://ecampus.phoenix.edu/content/eBookLibrary/content/eReader.h The free dictionary (2009). Employment at will. Retrieved February 16, 2009, from http://legal-dictionary.thefreedictionary.com/Employment+at+Will University of Phoenix. (1998 – 2008). LAW 531 Course Syllabus. Retrieved February 5, 2009, from University of Phoenix, Week Four LAW 531- http://classroom.phoenix.edu/afm205/secure/view-t hread.jspa'threadID=10461708