Legal Risk and Opportunity in Employment
Law 531, Business Law
Legal Encounter 1
The wording of the statute regarding at will employment is plain. If there is not an agreement for a specified period of time either party can end the agreement. In this case, Pat did not need permission to leave NewCorp and NewCorp did not need a reason to terminate Pat. Pat can show that he relied on the personnel manual, which created an implied agreement. If NewCorp failed to follow the handbook and say, terminated Pat without the requisite suspension, NewCorp was in breach of the implied agreement. Pat could then recover all damages that flowed from the breach. However, if the handbook distinctively states that it is not a contract, and need not be followed by the company, then it does not matter what else it says. If there is no such language, and Pat relied on the handbook, and the company failed to follow the handbook, Pat may have a breach of contract action. Pat has a duty to mitigate losses he may suffer from the firing. Pat’s damages will be measured by how much he would have made from NewCorp from the date of the termination until the date of the trial, minus any earnings received from replacement employment before trial. He has a legal duty to search for employment similar in pay and accountability to his job as a manager of real property. He must accept comparable employment. Pat thinks senior management was clearly distant after he voiced his opinion at a school board meeting. His position on a meeting was not well-liked and though nobody recognized him as a NewCorp employee, he believes this contributed to the decision to terminate him. Pat may try to charge that NewCorp violated his First Amendment Right to Speech. However, opposite to another popularly held misconception, the right to free speech only protects one from disturbance by the government, not by individuals or companies. The First Amendment does not stop a private employer from limiting...