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Employment contract
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== Legal Implications == {{Globalize|section|2=United States|date=January 2024}} With at-will employment, employers must be wary of legal issues that could potentially arise from [[wrongful termination]]. === ''[[Civil Rights Act of 1964]]'' === Employees in the United States are protected under Title VII of the [[Civil Rights Act of 1964]], which prohibits discrimination based on race, color, religion, sex or national origin (Prenkert et al., 2019). Title VII covers all employers with 15 or more employees and who are engaging in an industry affecting interstate commerce. Employers include individuals, partnerships, colleges and universities, labor unions and employment agencies, as well as state and local governments. Title VII prohibits two theories of employment discrimination: disparate treatment and disparate impact. Disparate treatment occurs when an employer treats an employee differently because of the employee's protected status. Disparate impact occurs when an employer's policies or practices are seemingly neutral regarding protected statuses and have a disproportionate negative impact on members of one of those groups (Prenkert et al., 2019). === ''[[Americans with Disabilities Act of 1990]]'' === Wrongful termination lawsuits can also arise from violating the [[Americans with Disabilities Act of 1990]], which protects both individuals who can perform the essential functions of their job despite their disability and those who need a reasonable accommodation to perform their duties (Prenkert et al., 2019). Reasonable accommodation includes making existing facilities readily accessible and usable, acquiring new equipment, restricting job, modifying work schedules, and reassigning workers to vacant positions. However, employers do not need to make accommodations that would create undue hardships. An act requiring significant difficulty or expense (Prenkert et al., 2019). === ''[[Fair Labor Standards Act]]'' === The [[Fair Labor Standards Act]] also affects employers and employment contracts in that it establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. The FLSA applies only to employers whose annual sales total $500,000 or more or who are engaged in interstate commerce (U.S. Department of Labor, n.d.). === ''Respondeat Superior'' === Lawsuits can arise as well from Respondeat Superior Liability or vicarious liability. Respondeat Superior is the legal doctrine that in Latin means βlet the master answer." Respondeat Superior holds an employer legally responsible for the wrongful acts of an employee or agent if such acts occur within the scope of the employment or agency. A court will apply the doctrine regardless of how closely the employer was monitoring the employee. Respondeat Superior applies to employees, but not to independent contractors.
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