labor law Key Concepts and Protections + actual extracted questions in
every module Western Governors University
Employment Law Study Guide
1. Functions of the U.S. Constitution in Employment Law
The U.S. Constitution provides foundational legal principles that influence
employment laws. Several constitutional provisions protect employees and
regulate workplace practices:
• The First Amendment: Protects freedom of speech, but private
employers are not bound by this outside of certain exceptions (e.g.,
whistleblower protections). Example: An employee expressing personal
views on social media may not be protected if their comments violate
company policy.
• The Fifth & Fourteenth Amendments: Ensure due process and
equal protection for employees in disciplinary actions, layoffs, or
hiring practices. Example: An employer cannot terminate an employee
solely based on their race or gender without violating constitutional
protections.
• The Commerce Clause: Grants Congress the authority to regulate
labor laws affecting interstate commerce, allowing for federal
workplace protections such as the Fair Labor Standards Act (FLSA).
U.S. Constitution is considered the supreme law of the land. It establishes the
foundation of the federal government, defines its powers, and protects the
rights of individuals.
This principle is reinforced by the Supremacy Clause (Article VI, Clause 2),
which states that:
"This Constitution, and the Laws of the United States ... shall be the supreme
Law of the Land."
This means that federal laws and the Constitution override state laws when
conflicts arise. Additionally, all government officials, including judges and
,legislators, must uphold the Constitution.
2. Common Law in Employment Law
Common law is derived from judicial decisions rather than statutes,
meaning courts use precedents to resolve employment disputes.
• Example: In wrongful termination cases, courts may review prior
rulings to determine if an employer violated implied contract
terms, even when no formal agreement exists.
, • Example: Constructive discharge occurs when an employer makes
working conditions unbearable, forcing the employee to resign. Courts
may refer to past cases to decide if the employer’s actions legally
constituted "forced resignation."
Common law in employment law refers to legal principles developed through
court decisions, rather than statutes or regulations. It is based on judicial
precedent, meaning courts apply past rulings to similar cases.
Key Aspects of Common Law in Employment Law
- Employment-at-Will Doctrine → Allows employers to terminate employees at
any time for any legal reason, unless an exception applies (public policy,
implied contract, good faith & fair dealing).
- Implied Contracts → Even if there’s no formal agreement, employee
handbooks or verbal assurances may create an enforceable contract.
- Duty of Good Faith & Fair Dealing → Prevents employers from acting in bad
faith when terminating or disciplining employees.
- Wrongful Termination Claims → If an employer fires a worker in violation of
public policy, such as retaliation for whistleblowing, courts may intervene.
- Constructive Discharge → If an employer creates intolerable working
conditions, forcing an employee to quit, courts may treat it as wrongful
termination.
- Tort Law in Employment → Covers defamation, invasion of privacy,
negligent hiring/retention, fraud, and workplace-related personal injuries.
3. Tort Laws Affecting Employee-Employer Relationships
Tort laws protect employees from harmful actions by employers or
coworkers.
• Defamation: Employers making false statements that damage an
employee’s reputation. Example: An employer falsely tells future
employers that a terminated employee was fired for theft, leading to
legal consequences.
• Libel vs. Slander
o Both libel and slander fall under defamation, but they differ in
how the false statement is communicated.
o Libel (Written Defamation)
, ▪ Definition: A false statement written, published, or
recorded that harms someone’s reputation.
▪ Medium: Newspapers, websites, books, social media posts,
emails, TV broadcasts.
▪ Example: A magazine falsely claims that a celebrity
committed fraud, damaging their career.
o Slander (Spoken Defamation)
▪ Definition: A false spoken statement that harms someone’s
reputation.
▪ Medium: Conversations, speeches, broadcasts (if not
recorded), phone calls.
▪ Example: A manager falsely tells employees that a
coworker steals office supplies, ruining their credibility.
▪ Key Differences:
▪ Libel is written/permanent, making it easier to prove
damages.
▪ Slander is spoken/transient, requiring proof that it directly
caused harm.
▪ Libel lawsuits often lead to larger damages because they
have a lasting impact.
• Negligent Hiring: Employers failing to properly vet employees who
later harm coworkers or customers. Example: Hiring a driver with
multiple DUIs for a delivery position without background checks could
result in liability if an accident occurs.
• Hiring a violent employee without a background check → An
employer hires someone with a history of workplace violence. Later,
the employee assaults a coworker, and the employer is held liable
for failing to screen their criminal record.
• Ignoring red flags in a candidate’s history → A company hires a
truck driver without checking prior DUI convictions. The driver
causes an accident, and the employer is sued for negligent hiring.