Employment Law for Business, 10th Edition, Dawn Bennett-Alexander
Chapter 1-16
Chapter 1
The Regulation of Employment
Chapter Objective
The student is introduced to the regulatory environment of the employment relationship. The
chapter examines whether regulation is actually necessary or beneficial or if, perhaps, the
relationship would fare better with less governmental intervention. The concepts of ―freedom‖ to
contract in the regulatory employment environment and non-compete agreements are discussed.
Since the regulations and case law discussed in this text rely on an individual‘s classification as
an employer or an employee, those definitions are delineated and explored.
Learning Objectives
(Click on the icon following the learning objective to be linked to the location in the outline
where the chapter addresses that particular objective.)
At the conclusion of this chapter, the students should be able to:
1. Describe the balance between the freedom to contract and the current regulatory
environment for employment.
2. Identify who is subject to which employment laws and understand the implication of each
of these laws for both the employer and employee.
3. Delineate the risks to the employer caused by employee misclassification.
4. Explain the difference between and employee and an independent contractor and the tests
that help us in that determination.
5. Articulate the various ways in which the concept ―employer‖ is defined by the various
employment-related regulations.
6. Describe the permissible parameters of non-compete agreements.
Detailed Chapter Outline
Scenarios—Points for Discussion
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Copyright @y2022 @y© @yMcGraw @yHill @yLLC. @yAll @yrights @yreserved. @yNo @yreproduction @yor
@ydistribution @ywithout @ythe @yprior @ywritten @yconsent @yof @yMcGraw @yHill
@yLLC.
,Scenario @yOne: @yThis @yscenario @yoffers @yan @yopportunity @yto @yreview @ythe @ydistinctions
@ybetween @yan @yemployee @yand @yan @yindependent @ycontractor @ydiscussed @yin @ythe @ychapter @y(see
@y―The @yDefinition @yof @yEmployee,‖ @yparticularly @yExhibits @y1.3–1.5). @yDiscuss @ythe @yIRS @y20-
factor @yanalysis, @yas @yit @yapplies @yto @yDalia‘s @yposition. @yIn @ylight @yof @ythe @ylow @ylevel @yof
@ycontrol @ythat @yDalia @yhad @yover @yher @yfees @yand @yher @ywork @yprocess, @yand @ythe @ylimits @yupon
@yher @ychoice @yof @yclients, @ystudents @yshould @ycome @yto @ythe @yconclusion @ythat @yDalia @yis @yan
@yemployee @y(therefore, @yeligible @yto @yfile @yan @yunemployment @yclaim), @yrather @ythan @yan
@yindependent @ycontractor.
Scenario @yTwo: @ySoraya @ywould @ynot @yhave @ya @ycause @yof @yaction @ythat @ywould @ybe @yrecognized @yby
@ythe @yEEOC. @yReview @ythe @ysection @y―The @yDefinition @yof @y‗Employer‘‖ @ywith @ystudents, @yand
@ydiscuss @ythe @yrationale @ythat @ydetermines @ythe @ystatus @yof @ya @ysupervisor @yvis-à-vis @yanti-
discrimination @ylegislation. @yBecause @ySoraya @yis @ySoraya‘s @ysupervisor, @ynot @yher @yemployer, @yhe
@ycannot @ybe @ythe @ytarget @yof @yan @yEEOC @yclaim @yof @ysexual @yharassment.
CCC, @ySoraya‘s @yemployer, @ywould @ybe @yvulnerable @yto @yan @yEEOC @yclaim @yif @ythe @ycompany
@ylacked @yor @yfailed @yto @yfollow @ya @ysystem @yfor @yemployee @yredress @yof @ydiscrimination
@ygrievances. @yHowever, @yin @ythis @ycase, @yCCC @yappears @yto @yhave @ya @yviable @yanti-
discrimination @ypolicy @ythat @yit @yadhered @yto @ydiligently; @yconsequently, @ySoraya @ywould @ybe
@yunlikely @yto @ywin @ya @ydecision @yin @yher @yfavor. @yThe @ycourt @yin @yWilliams @yv. @yBanning @y(1995)
@yoffered @ythe @yfollowing @yrationale @yfor @yits @ydecision @yin @ya @ysimilar @ycase:
―She @yhas @yan @yemployer @ywho @ywas @ysensitive @yand @yresponsive @yto @yher @ycomplaint. @yShe
@ycan @ytake @ycomfort @yin @ythe @yknowledge @ythat @yshe @ycontinues @yto @ywork @yfor @ythis
@ycompany, @ywhile @yher @yharasser @ydoes @ynot @yand @ythat @ythe @ycompany's @yprompt @yaction @yis
@ylikely @yto @ydiscourage @yother @ywould @ybe @yharassers. @yThis @yis @yprecisely @ythe @yresult @yTitle
@yVII @ywas @ymeant @yto @yachieve.‖
Scenario @yThree: @yStudents @yshould @ydiscuss @ywhether @yor @ynot @yMya @ynon-compete @yagreement
@yis @ylikely @yto @ybe @yfound @yreasonable @yby @ya @ycourt, @yand @yelaborate @ythe @yaspects @yof @ythe
@yagreement @ythat @yMya @ymight @ycontest @yas @yunreasonable @y(see @ysection @ybelow, @y―Covenants
@yNot @yto @yCompete‖). @yDoes @yMya @yhave @ya @ypersuasive @yargument @ythat @ythe @yterms @yof @yher
@ynon-compete @yagreement @yare @yunreasonable @yin @yscope @yor @yduration? @yMight @yshe @yhave
@ygrounds @yto @yclaim @ythat @ythe @yagreement @yprohibits @yher @yfrom @ymaking @ya @yliving?
Given @ythe @ydiversity @yof @ystate @ylaws @yregulating @ynon-compete @yagreements, @ydiscuss @ythe
@yrange @yof @ylegal @yrestrictions @ythat @ymight @yapply @yto @yMya‘s @yparticular @yagreement @ywith @yher
@yemployer. @yAs @yan @yemployee @ywho @yworks @yacross @yseveral @ystates, @yMya‘s @ydefense @ymay
@ydepend @yupon @ythe @ypresence—and @yspecific @ylanguage—of @ya @yforum @yselection @yclause @yin
@yher @ynon-compete @yagreement. @yConsider @ywhat @ylanguage @ywould @ybe @ymore @ylikely @yto
@yprovide @yNan @ywith @ya @ystrong @ydefense @yagainst @ythe @ybreach @yof @ycontract @yclaim.
Mya @ymight @yalso @yargue @ythat @ythe @ycompany‘s @yclient @ylist @yis @yavailable @ythrough @ypublic
@ymeans, @yand @ytherefore, @yher @yaccess @yto @ythis @ylist @yshould @ynot @ybe @yprohibited.
General @yLecture @yNote @yfor @yEmployment @yLaw @yCourse
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Copyright @y2022 @y© @yMcGraw @yHill @yLLC. @yAll @yrights @yreserved. @yNo @yreproduction @yor
@ydistribution @ywithout @ythe @yprior @ywritten @yconsent @yof @yMcGraw @yHill
@yLLC.
,In @yorder @yto @yteach @ythis @ycourse, @yinstructors @yhave @yfound @ythat @ystudents @ymust @ybe @ymade @yto
@yfeel @yrelatively @ycomfortable @ywith @ytheir @ypeers. @yInstructors @ywill @ybe @yasking @ythe @ystudents
@yto @ybe @yhonest @yand @yto @ystay @yin @ytheir @ytruth, @yeven @yat @ytimes @ywhen @ythey @yfeel @ythat @ytheir
@yopinion @yon @yone @yof @ythese @ymatters @ywill @ynot @ybe
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Copyright @y2022 @y© @yMcGraw @yHill @yLLC. @yAll @yrights @yreserved. @yNo @yreproduction @yor
@ydistribution @ywithout @ythe @yprior @ywritten @yconsent @yof @yMcGraw @yHill
@yLLC.
, popular @yor @yaccepted @yby @ythe @ygroup. @yIn @yorder @yto @yencourage @yan @yopen @yatmosphere, @yit @yis
@ytherefore @ynecessary @yfor @ythe @yclass @yto @yfeel @ycomfortable @ywith @yand @yto @ybe @yaware @yof
@yitself @yas @ya @ygroup. @yHere @yare @ytwo @yexercises, @ywhich @yhave @yproven @yto @ybe @yuseful @yin
@yreaching @ythat @ygoal @yin @ysome @yclasses:
Cultural @yIntroductions
Have @ystudents @ysit @yin @ygroups @yof @yfour @yor @yfive. @yOnce @ythey @yare @yin @ytheir @ygroups @y(some
@yinstructors @ycall @ythem @yfamilies, @yso @yas @yto @yprevent @ya @yfeeling @yof @ycompetition), @yhave
@ystudents @yintroduce @ythemselves, @yas @ywell @yas @yprovide @ya @ybit @yof @ycultural @yintroduction
@y(where @ythey @yor @ytheir @yparents @yare @yfrom, @ywhere @ythey @ymay @yhave @ylived, @yor @yother
@y―cultural‖ @yinformation, @ylike @ythey @yare @yfrom @ythe @ysuburbs, @yor @ythey @ywork @yfor @ya
@ycertain @yindustry, @yor @ythey @ywent @yto @ya @ycatholic @yschool, @yetc.). @yThey @yshould @yalso
@ydiscuss @ytimes @ywhen @ythey @ymay @yhave @ybeen @ymore @yaware @yof @ythis @ycultural @ydifference
@ythan @yothers. @yThis @ywill @yonly @ybe @yshared @ywith @ythe @yfamilies. @yIn @ythis @yway, @yeach
@ystudent @yis @ymade @yaware @yof @ythe @yfact @ythat @yshe @yor @yhe @ybelongs @yto @ya @ynumber @yof
@ydifferent @ycultures, @ytheir @ygender, @yrace, @yand @yethnicity, @yas @ywell @yas @ygeography, @yage,
@ytype @yof @yeducation, @yetc. @yGenerally @y―white @ymales‖ @yis @yused @yas @ythe @yconcept @yof
@ymajority, @ythough @ymany @yof @ythe @y―white @ymales‖ @yin @ythe @yclass @ymay @ybelong @yto @ya
@yvariety @yof @ycultural @ygroups. @yAllow @yeach @yof @ythem @yto @yunderstand @ytheir @yown
@yuniqueness.
Then @yask @ygroup @ymembers @yto @yintroduce @yother @ymembers @yto @ythe @yclass.
Four @yFacts
Ask @ythe @ystudents @yto @yget @yinto @ygroups @yand @ylist @yfour @ystatements @yabout @ythemselves,
@ythree @yof @ywhich @yshould @ybe @ytrue, @yand @yone @yof @ywhich @yshould @ybe @yfalse. @yAlso @yask
@ythem @yto @ylist @ybelow @ythose @ystatements @ythe @ynames @yof @ythe @ymembers @yof @ytheir @yfamily.
@y(The @yinstructor @yshould @ydo @ythis @ytoo, @yup @yon @ythe @yboard, @ythen @ydisclose @ylater @yto @ythe
@ywhole @yclass.)
Now, @yeach @yindividual @yshould @ytake @yturns @yreading @yher @yor @yhis @ystatements @yto @ytheir
@yfamily. @yAs @yeach @yperson @yreads @ytheir @ystatement, @ythe @yother @ypeople @yshould @yjot @ydown
@ywhich @ynumbered @ystatement @yis @yfalse @ynext @yto @ytheir @yname.
Then, @ytake @yone @yperson @yat @ya @ytime, @yand @yall @yof @ythe @yothers @yshould @yidentify @ywhich
@ystatement @ythey @ybelieve @yis @yfalse @yand @ywhy. @yAfter @yeveryone @yhas @ymade @ytheir @yguess,
@ythe @yperson @ywho @yshared @ythe @ystatements @ycan @yreveal @ywhich @yis @yactually @yfalse.
Were @ythe @ystudents @ysurprised @yat @ysome @yof @ythe @yfacts @ythat @ypeople @yshared? @yWhich?
@yWhy?
How @ygood @ywere @ythe @ystudents, @yindividually @yand @yas @ya @ygroup, @yat @ypicking @ythe @yfalse
@ystatement?
What @ydoes @ythis @ytell @yone @yabout @ymaking @yassumptions @yand @yjudgments @yabout @ypeople?
Were @ysome @yof @ythe @ystatements @ygiven @yby @ydifferent @ypeople @ysimilar? @yWhy?
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Copyright @y2022 @y© @yMcGraw @yHill @yLLC. @yAll @yrights @yreserved. @yNo @yreproduction @yor
@ydistribution @ywithout @ythe @yprior @ywritten @yconsent @yof @yMcGraw @yHill
@yLLC.