INSTRUCTOR MANUAL FOR n n
Employment Law for Business, 10th Edition, Dawn Bennett-
n n n n n n n
AlexanderChapter 1-16
n n
Chapter 1 n
The Regulation of Employment
n n n
Chapter Objective
n
Thenstudentnisnintroducedntonthenregulatorynenvironmentnofnthenemploymentnrelationship.nThenchap
ternexaminesnwhethernregulationnisnactuallynnecessarynornbeneficialnornif,nperhaps,nthenrelationshipn
wouldnfarenbetternwithnlessngovernmentalnintervention.nThenconceptsnofn―freedom‖ntoncontractninnth
enregulatorynemploymentnenvironmentnandnnon-
competenagreementsnarendiscussed.nSincenthenregulationsnandncasenlawndiscussedninnthisntextnrelyno
nnannindividual‘snclassificationnasnannemployernornannemployee,nthosendefinitionsnarendelineatednan
dnexplored.
Learning Objectives
n
(Clicknonntheniconnfollowingnthenlearningnobjectiventonbenlinkedntonthenlocationninnthenoutlinenw
herenthenchapternaddressesnthatnparticularnobjective.)
Atnthenconclusionnofnthisnchapter,nthenstudentsnshouldnbenablento:
1. Describenthenbalancenbetweennthenfreedomntoncontractnandnthencurrentnregulatoryne
nvironmentnfornemployment.n
2. Identifynwhonisnsubjectntonwhichnemploymentnlawsnandnunderstandnthenimplicationnofneachno
fnthesenlawsnfornbothnthenemployernandnemployee.n
3. Delineatenthenrisksntonthenemployerncausednbynemployeenmisclassification.n
4. Explainnthendifferencenbetweennandnemployeenandnannindependentncontractornandnthentestsnt
hatnhelpnusninnthatndetermination.n
5. Articulatenthenvariousnwaysninnwhichnthenconceptn ―employer‖nisndefinednbynthenvariousn
employment-relatednregulations.n
6. Describenthenpermissiblenparametersnofnnon-competenagreements.n
Detailed Chapter Outline
n n
Scenarios—PointsnfornDiscussion
1-1
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
,ScenarionOne:nThisnscenarionoffersnannopportunityntonreviewnthendistinctionsnbetweennannempl
oyeenandnannindependentncontractorndiscussedninnthenchaptern(seen―ThenDefinitionnofnEmployee
,‖nparticularlynExhibitsn1.3–1.5).nDiscussnthenIRSn20-
factornanalysis,nasnitnappliesntonDalia‘snposition.nInnlightnofnthenlownlevelnofncontrolnthatnDalianha
dnovernhernfeesnandnhernworknprocess,nandnthenlimitsnuponnhernchoicenofnclients,nstudentsnshouldn
comentonthenconclusionnthatnDalianisnannemployeen(therefore,neligiblentonfilenannunemploymentnc
laim),nrathernthannannindependentncontractor.
ScenarionTwo:nSorayanwouldnnotnhavenancausenofnactionnthatnwouldnbenrecognizednbynthenEEOC.nR
eviewnthensectionn―ThenDefinitionnofn‗Employer‘‖nwithnstudents,nandndiscussnthenrationalenthatndet
erminesnthenstatusnofnansupervisornvis-à-visnanti-
discriminationnlegislation.nBecausenSorayanisnSoraya‘snsupervisor,nnotnhernemployer,nhencannotnbe
nthentargetnofnannEEOCnclaimnofnsexualnharassment.
CCC,nSoraya‘snemployer,nwouldnbenvulnerablentonannEEOCnclaimnifnthencompanynlackednornfailednt
onfollownansystemnfornemployeenredressnofndiscriminationngrievances.nHowever,ninnthisncase,nCCCn
appearsntonhavenanviablenanti-
discriminationnpolicynthatnitnadheredntondiligently;nconsequently,nSorayanwouldnbenunlikelyntonwinn
andecisionninnhernfavor.nThencourtninnWilliamsnv.nBanningn(1995)nofferednthenfollowingnrationalenfor
nitsn decisionninnansimilarncase:
―Shenhasnannemployernwhonwasnsensitivenandnresponsiventonherncomplaint.nShencanntakenco
mfortninnthenknowledgenthatnshencontinuesntonworknfornthisncompany,nwhilenhernharasserndoe
snnotnandnthatnthencompany'snpromptnactionnisnlikelyntondiscouragenothernwouldnbenharassers
.nThisnisnpreciselynthenresultnTitlenVIInwasnmeantntonachieve.‖
ScenarionThree:nStudentsnshouldndiscussnwhethernornnotnMyannon-
competenagreementnisnlikelyntonbenfoundnreasonablenbynancourt,nandnelaboratenthenaspectsnofnthenagre
ementnthatnMyanmightncontestnasnunreasonablen(seensectionnbelow,n―CovenantsnNotntonCompete‖).n
Doesn Myanhavenanpersuasivenargumentnthatnthentermsnofnhernnon-
competenagreementnarenunreasonableninnscopenornduration?nMightnshenhavengroundsntonclaimnthatnt
henagreementnprohibitsnhernfromnmakingnanliving?
Givennthendiversitynofnstatenlawsnregulatingnnon-
competenagreements,ndiscussnthenrangenofnlegalnrestrictionsnthatnmightnapplyntonMya‘snparticularna
greementnwithnhernemployer.nAsnannemployeenwhonworksnacrossnseveralnstates,nMya‘sndefensenma
yndependnuponnthenpresence—andnspecificnlanguage—ofnanforumnselectionnclauseninnhernnon-
competenagreement.nConsidernwhatnlanguagenwouldnbenmorenlikelyntonprovidenNannwithnanstrongn
defensenagainstnthenbreachnofncontractnclaim.
Myanmightnalsonarguenthatnthencompany‘snclientnlistnisnavailablenthroughnpublicnmeans,nandnt
herefore,nhernaccessntonthisnlistnshouldnnotnbenprohibited.
GeneralnLecturenNotenfornEmploymentnLawnCourse
Innorderntonteachnthisncourse,ninstructorsnhavenfoundnthatnstudentsnmustnbenmadentonfeelnrelativelync
1-2
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
,omfortablenwithntheirnpeers.nInstructorsnwillnbenaskingnthenstudentsntonbenhonestnandntonstayninnthei
rntruth,nevennatntimesnwhenntheynfeelnthatntheirnopinionnonnonenofnthesenmattersnwillnnotnbe
1-3
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
, popularnornacceptednbynthengroup.nInnorderntonencouragenannopennatmosphere,nitnisnthereforennecess
arynfornthenclassntonfeelncomfortablenwithnandntonbenawarenofnitselfnasnangroup.nHerenarentwonexercise
s,nwhichnhavenprovenntonbenusefulninnreachingnthatngoalninnsomenclasses:
CulturalnIntroductions
Havenstudentsnsitninngroupsnofnfournornfive.nOncentheynareninntheirngroupsn(someninstructorsncallnth
emnfamilies,nsonasntonpreventnanfeelingnofncompetition),nhavenstudentsnintroducenthemselves,nasn
wellnasnprovidenanbitnofnculturalnintroductionn(wherentheynorntheirnparentsnarenfrom,nwherentheyn
maynhavenlived,nornothern―cultural‖ninformation,nlikentheynarenfromnthensuburbs,norntheynworknfor
nancertainnindustry,norntheynwentntonancatholicnschool,netc.).nTheynshouldnalsondiscussntimesnwhen
ntheynmaynhavenbeennmorenawarenofnthisnculturalndifferencenthannothers.nThisnwillnonlynbenshared
nwithnthenfamilies.n Innthisnway,n eachn studentnisnmadenawarenofn thenfactnthatnshenornhenbelongsntona
nnumbernofndifferentncultures,ntheirngender,nrace,nandnethnicity,nasnwellnasngeography,nage,ntypeno
fneducation,netc.nGenerallyn―whitenmales‖nisnusednasnthenconceptnofnmajority,nthoughnmanynofnthe
n―whitenmales‖ninnthen classnmaynbelongntonanvarietynofnculturalngroups.nAllowneachnofnthemntonun
derstandntheirnownnuniqueness.
Thennaskngroupnmembersntonintroducenothernmembersntonthenclass.
FournFacts
Asknthenstudentsntongetnintongroupsnandnlistnfournstatementsnaboutnthemselves,nthreenofnwhichnsh
ouldnbentrue,nandnonenofnwhichnshouldnbenfalse.nAlsonasknthemntonlistnbelownthosenstatementsnthen
namesnofnthenmembersnofntheirnfamily.n(Theninstructornshouldndonthisntoo,nupnonnthenboard,nthenn
disclosenlaterntonthenwholenclass.)
Now,neachnindividualnshouldntakenturnsnreadingnhernornhisnstatementsntontheirnfamily.nAsneachnp
ersonnreadsntheirnstatement,nthenothernpeoplenshouldnjotndownnwhichnnumberednstatementnisnfal
sennextntontheirnname.
Then,ntakenonenpersonnatnantime,nandnallnofnthenothersnshouldnidentifynwhichnstatementntheynb
elievenisnfalsenandnwhy.nAfterneveryonenhasnmadentheirnguess,nthenpersonnwhonsharednthensta
tementsncannrevealnwhichnisnactuallynfalse.
Werenthenstudentsnsurprisednatnsomenofnthenfactsnthatnpeoplenshared?nWhich?nWhy?
Howngoodnwerenthenstudents,nindividuallynandnasnangroup,natnpickingnthenfalsenstatement?
Whatndoesnthisntellnonenaboutnmakingnassumptionsnandnjudgmentsnaboutnpeople?
Werensomenofnthenstatementsngivennbyndifferentnpeoplensimilar?nWhy?
Giventhenfollowingninstructionsntonstudentsntonfindnoutnhownmanyntheyngotnright—
―Everyonenstandnup.nIfnyoungotnatnleastnonenright,nstaynstanding.nTwonright,nstaynstanding.nThr
eenright?nFournfight?nFivenright?netc.‖nSoonnonlynonenorntwonmaynremainnstanding.
OpeningnDiscussionnTip
Whatnisnemploymentnlaw?
1-4
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
Employment Law for Business, 10th Edition, Dawn Bennett-
n n n n n n n
AlexanderChapter 1-16
n n
Chapter 1 n
The Regulation of Employment
n n n
Chapter Objective
n
Thenstudentnisnintroducedntonthenregulatorynenvironmentnofnthenemploymentnrelationship.nThenchap
ternexaminesnwhethernregulationnisnactuallynnecessarynornbeneficialnornif,nperhaps,nthenrelationshipn
wouldnfarenbetternwithnlessngovernmentalnintervention.nThenconceptsnofn―freedom‖ntoncontractninnth
enregulatorynemploymentnenvironmentnandnnon-
competenagreementsnarendiscussed.nSincenthenregulationsnandncasenlawndiscussedninnthisntextnrelyno
nnannindividual‘snclassificationnasnannemployernornannemployee,nthosendefinitionsnarendelineatednan
dnexplored.
Learning Objectives
n
(Clicknonntheniconnfollowingnthenlearningnobjectiventonbenlinkedntonthenlocationninnthenoutlinenw
herenthenchapternaddressesnthatnparticularnobjective.)
Atnthenconclusionnofnthisnchapter,nthenstudentsnshouldnbenablento:
1. Describenthenbalancenbetweennthenfreedomntoncontractnandnthencurrentnregulatoryne
nvironmentnfornemployment.n
2. Identifynwhonisnsubjectntonwhichnemploymentnlawsnandnunderstandnthenimplicationnofneachno
fnthesenlawsnfornbothnthenemployernandnemployee.n
3. Delineatenthenrisksntonthenemployerncausednbynemployeenmisclassification.n
4. Explainnthendifferencenbetweennandnemployeenandnannindependentncontractornandnthentestsnt
hatnhelpnusninnthatndetermination.n
5. Articulatenthenvariousnwaysninnwhichnthenconceptn ―employer‖nisndefinednbynthenvariousn
employment-relatednregulations.n
6. Describenthenpermissiblenparametersnofnnon-competenagreements.n
Detailed Chapter Outline
n n
Scenarios—PointsnfornDiscussion
1-1
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
,ScenarionOne:nThisnscenarionoffersnannopportunityntonreviewnthendistinctionsnbetweennannempl
oyeenandnannindependentncontractorndiscussedninnthenchaptern(seen―ThenDefinitionnofnEmployee
,‖nparticularlynExhibitsn1.3–1.5).nDiscussnthenIRSn20-
factornanalysis,nasnitnappliesntonDalia‘snposition.nInnlightnofnthenlownlevelnofncontrolnthatnDalianha
dnovernhernfeesnandnhernworknprocess,nandnthenlimitsnuponnhernchoicenofnclients,nstudentsnshouldn
comentonthenconclusionnthatnDalianisnannemployeen(therefore,neligiblentonfilenannunemploymentnc
laim),nrathernthannannindependentncontractor.
ScenarionTwo:nSorayanwouldnnotnhavenancausenofnactionnthatnwouldnbenrecognizednbynthenEEOC.nR
eviewnthensectionn―ThenDefinitionnofn‗Employer‘‖nwithnstudents,nandndiscussnthenrationalenthatndet
erminesnthenstatusnofnansupervisornvis-à-visnanti-
discriminationnlegislation.nBecausenSorayanisnSoraya‘snsupervisor,nnotnhernemployer,nhencannotnbe
nthentargetnofnannEEOCnclaimnofnsexualnharassment.
CCC,nSoraya‘snemployer,nwouldnbenvulnerablentonannEEOCnclaimnifnthencompanynlackednornfailednt
onfollownansystemnfornemployeenredressnofndiscriminationngrievances.nHowever,ninnthisncase,nCCCn
appearsntonhavenanviablenanti-
discriminationnpolicynthatnitnadheredntondiligently;nconsequently,nSorayanwouldnbenunlikelyntonwinn
andecisionninnhernfavor.nThencourtninnWilliamsnv.nBanningn(1995)nofferednthenfollowingnrationalenfor
nitsn decisionninnansimilarncase:
―Shenhasnannemployernwhonwasnsensitivenandnresponsiventonherncomplaint.nShencanntakenco
mfortninnthenknowledgenthatnshencontinuesntonworknfornthisncompany,nwhilenhernharasserndoe
snnotnandnthatnthencompany'snpromptnactionnisnlikelyntondiscouragenothernwouldnbenharassers
.nThisnisnpreciselynthenresultnTitlenVIInwasnmeantntonachieve.‖
ScenarionThree:nStudentsnshouldndiscussnwhethernornnotnMyannon-
competenagreementnisnlikelyntonbenfoundnreasonablenbynancourt,nandnelaboratenthenaspectsnofnthenagre
ementnthatnMyanmightncontestnasnunreasonablen(seensectionnbelow,n―CovenantsnNotntonCompete‖).n
Doesn Myanhavenanpersuasivenargumentnthatnthentermsnofnhernnon-
competenagreementnarenunreasonableninnscopenornduration?nMightnshenhavengroundsntonclaimnthatnt
henagreementnprohibitsnhernfromnmakingnanliving?
Givennthendiversitynofnstatenlawsnregulatingnnon-
competenagreements,ndiscussnthenrangenofnlegalnrestrictionsnthatnmightnapplyntonMya‘snparticularna
greementnwithnhernemployer.nAsnannemployeenwhonworksnacrossnseveralnstates,nMya‘sndefensenma
yndependnuponnthenpresence—andnspecificnlanguage—ofnanforumnselectionnclauseninnhernnon-
competenagreement.nConsidernwhatnlanguagenwouldnbenmorenlikelyntonprovidenNannwithnanstrongn
defensenagainstnthenbreachnofncontractnclaim.
Myanmightnalsonarguenthatnthencompany‘snclientnlistnisnavailablenthroughnpublicnmeans,nandnt
herefore,nhernaccessntonthisnlistnshouldnnotnbenprohibited.
GeneralnLecturenNotenfornEmploymentnLawnCourse
Innorderntonteachnthisncourse,ninstructorsnhavenfoundnthatnstudentsnmustnbenmadentonfeelnrelativelync
1-2
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
,omfortablenwithntheirnpeers.nInstructorsnwillnbenaskingnthenstudentsntonbenhonestnandntonstayninnthei
rntruth,nevennatntimesnwhenntheynfeelnthatntheirnopinionnonnonenofnthesenmattersnwillnnotnbe
1-3
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
, popularnornacceptednbynthengroup.nInnorderntonencouragenannopennatmosphere,nitnisnthereforennecess
arynfornthenclassntonfeelncomfortablenwithnandntonbenawarenofnitselfnasnangroup.nHerenarentwonexercise
s,nwhichnhavenprovenntonbenusefulninnreachingnthatngoalninnsomenclasses:
CulturalnIntroductions
Havenstudentsnsitninngroupsnofnfournornfive.nOncentheynareninntheirngroupsn(someninstructorsncallnth
emnfamilies,nsonasntonpreventnanfeelingnofncompetition),nhavenstudentsnintroducenthemselves,nasn
wellnasnprovidenanbitnofnculturalnintroductionn(wherentheynorntheirnparentsnarenfrom,nwherentheyn
maynhavenlived,nornothern―cultural‖ninformation,nlikentheynarenfromnthensuburbs,norntheynworknfor
nancertainnindustry,norntheynwentntonancatholicnschool,netc.).nTheynshouldnalsondiscussntimesnwhen
ntheynmaynhavenbeennmorenawarenofnthisnculturalndifferencenthannothers.nThisnwillnonlynbenshared
nwithnthenfamilies.n Innthisnway,n eachn studentnisnmadenawarenofn thenfactnthatnshenornhenbelongsntona
nnumbernofndifferentncultures,ntheirngender,nrace,nandnethnicity,nasnwellnasngeography,nage,ntypeno
fneducation,netc.nGenerallyn―whitenmales‖nisnusednasnthenconceptnofnmajority,nthoughnmanynofnthe
n―whitenmales‖ninnthen classnmaynbelongntonanvarietynofnculturalngroups.nAllowneachnofnthemntonun
derstandntheirnownnuniqueness.
Thennaskngroupnmembersntonintroducenothernmembersntonthenclass.
FournFacts
Asknthenstudentsntongetnintongroupsnandnlistnfournstatementsnaboutnthemselves,nthreenofnwhichnsh
ouldnbentrue,nandnonenofnwhichnshouldnbenfalse.nAlsonasknthemntonlistnbelownthosenstatementsnthen
namesnofnthenmembersnofntheirnfamily.n(Theninstructornshouldndonthisntoo,nupnonnthenboard,nthenn
disclosenlaterntonthenwholenclass.)
Now,neachnindividualnshouldntakenturnsnreadingnhernornhisnstatementsntontheirnfamily.nAsneachnp
ersonnreadsntheirnstatement,nthenothernpeoplenshouldnjotndownnwhichnnumberednstatementnisnfal
sennextntontheirnname.
Then,ntakenonenpersonnatnantime,nandnallnofnthenothersnshouldnidentifynwhichnstatementntheynb
elievenisnfalsenandnwhy.nAfterneveryonenhasnmadentheirnguess,nthenpersonnwhonsharednthensta
tementsncannrevealnwhichnisnactuallynfalse.
Werenthenstudentsnsurprisednatnsomenofnthenfactsnthatnpeoplenshared?nWhich?nWhy?
Howngoodnwerenthenstudents,nindividuallynandnasnangroup,natnpickingnthenfalsenstatement?
Whatndoesnthisntellnonenaboutnmakingnassumptionsnandnjudgmentsnaboutnpeople?
Werensomenofnthenstatementsngivennbyndifferentnpeoplensimilar?nWhy?
Giventhenfollowingninstructionsntonstudentsntonfindnoutnhownmanyntheyngotnright—
―Everyonenstandnup.nIfnyoungotnatnleastnonenright,nstaynstanding.nTwonright,nstaynstanding.nThr
eenright?nFournfight?nFivenright?netc.‖nSoonnonlynonenorntwonmaynremainnstanding.
OpeningnDiscussionnTip
Whatnisnemploymentnlaw?
1-4
Copyrightn2022n©nMcGrawnHillnLLC.nAllnrightsnreserved.nNonreproductionnorndistributionn
withoutnthenpriornwrittennconsentnofnMcGrawnHillnLLC.
