BLAW 3400

Employment at Will

15 Points

Read Caterpillar, Inc. v. Sudlow beginning on page 443.

This case illustrates the importance of an employer adopting policies and practices that are consistent with statutes and common law principles.

Part 1. Identify.

According to this court, what does "at will employee" mean?

When will a court recognize a public policy exception to the employment at will doctrine?

Part 2 Apply. Why did this court conclude that there was no contravention of public policy in this case?

Part 3: What would you do? The case states that "[a]nother employee was walking through the parking lot, noticed the handgun in Sudlow's vehicle, and reported it to the head of security." In the video for Business Organizations, you learned about the fiduciary duty. That is also addressed in your textbook. See, for example, section 19-3a. Assume that you are an employee of Caterpillar who is also an agent, so you have a fiduciary duty to the company. You see the handgun in an employee's car. Do you have a duty to report it? First, discuss whether you have a legal duty to report this?Second, explain whether you have an ethical obligation to report it; what would you do?

ner contrary sea, a court may hold That the employer has violated the implied contract and activity. Normally, however, whistleblowers seek pro is liable for damages. tion from retaliatory discharge under federal and s statutes, such as the Whistleblower Protection Act. Exceptions Based on Tort Theory In some situ- Case in Point 20.3 Dale Yurk was employe Application Software Technology (AST) Corporat ations, the discharge of an employee may give rise to an He discovered that AST was planning to reuse and action for wrongful discharge (discussed shortly) under software that it had developed for the city of Detroit. fort theories. Abusive discharge procedures may result in contacted his superiors-including the company's a lawsuit for intentional infliction of emotional distress executive officer-and told them that he believe or defamation. In addition, some courts have permitted resale infringed on the city's intellectual property workers to sue their employers under the tort theory of Shortly afterward, AST terminated Yurk's employn fraud. Fraud might be alleged when an employer made Yurk sued AST, alleging that the company ha false promises to a prospective employee. lated both the Whistleblower Protection Act and Example 20.2 Goldfinch Consulting, Inc., induces policy. A federal district court held that Yurk had Brianna to leave a lucrative job and move to another state claim under the Whistleblower Protection Act b by offering her "a long-term job with a thriving business." missed the claim alleging that the company had In fact, Goldfinch is not only having significant financial public policy. problems but is also planning a merger that will result in The issue in the following case was whet employment-at-will doctrine could be applied to the elimination of the position offered to Brianna. If she the discharge of an employee who brought a takes the job in reliance on Goldfinch's representations to work but left it locked in his vehicle-in pl and is fired shortly thereafter, Brianna may be able to The employee who was fired claimed that a publ bring an action against the employer for fraud. exception prevented the employer from dischar under the circumstances. Exceptions Based on Public Policy The most common exception to the employment-at-will doctrine 1. 5 U.S.C. Sections 1201 et seq., and 2302(b)(8)-(9). is made on the basis that the employer's reason for firing 2. Yurk v. Application Software Technology Corp., 2017 WL 66 the employee violates a fundamental public policy of the (E.D.Mich. 2017). Cas Caterpillar, Inc. v. Sudlow Court of Appeals of Indiana, 52 N.E.3d 19 (2016). Background and Facts The firearms policy at a Caterpillar, Inc., facility in Indiana allowed employees who were legally permitted to possess firearms to store the weapons in their vehicles "in line with state law." The state firearms statute required firearms stored in vehicles to be locked in a trunk, kept in the glove compartment, or otherwise placed out of sight. William Sudlow, an employee at Caterpillar, drove to work one day with a loaded Ruger .357 Magnum handgun-for which he had a permit-stuffed between the center console and the driver's eat. Sudlow left the gun there when he parked and entered the building to begin his workday. Another Caterpillar employee was walking through the parking lot, noticed the handgun in Sudlow's chicle, and reported it to the head of security. Case 20.1 Continues