Restatement of the Law, Employment Law

This volume, developed by leading experts over nearly a decade, clarifies employment law, covering contracts, termination, compensation, and related issues.

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The result of nearly a decade of work by eminent scholars, judges, and practicing lawyers, this new volume clarifies employment law today.

This publication provides concise and clear rules and analysis on issues specific to the employment relationship, including contracts, termination, compensation, benefits, tort liability, wrongful discharge in violation of public policy, defamation, wrongful interference, misrepresentation, autonomy, privacy, employee obligations, restrictive covenants, and remedies.

Chief Reporter:
Samuel Estreicher, New York University School of Law

Associate Reporters:
Matthew T. Bodie, Saint Louis University School of Law
Michael C. Harper, Boston University School of Law
Stewart J. Schwab, Cornell Law School

Summary of Contents

FOREWORD

Chapter 1. Existence of Employment Relationship

Introductory Note

§ 1.01. Conditions for Existence of Employment Relationship

§ 1.02. Volunteers Are Not Employees

§ 1.03. Controlling Owners Are Not Employees

§ 1.04. Employees of Two or More Employers



Chapter 2. Employment Contracts: Termination

Introductory Note

§ 2.01. Default Rule of an At-Will Employment Relationship

§ 2.02. Agreements and Binding Employer Promises or Statements Providing for Terms Other

Than At-Will Employment

§ 2.03. Agreements for a Definite or Indefinite Term

§ 2.04. Cause for Termination of Employment Agreements

§ 2.05. Binding Employer Policy Statements

§ 2.06. Modification or Revocation of Binding Employer Policy Statements

§ 2.07. Implied Duty of Good Faith and Fair Dealing



Chapter 3. Employment Contracts: Compensation and Benefits

Introductory Note

§ 3.01. Right to Earned Compensation

§ 3.02. Bonuses and Other Incentive Compensation

§ 3.03. Benefits

§ 3.04. Modification of Compensation or Benefits

§ 3.05. Implied Duty of Good Faith and Fair Dealing



Chapter 4. Principles of Employer Liability for Tortious Harm to Employees

Introductory Note

§ 4.01. Scope of Employer's Liability to Employees Generally

§ 4.02. Employer's Direct Liability to Employees for Its Own Conduct

§ 4.03. Employer's Liability to Employees for Acts of Employees or Agents

§ 4.04. Employer's Duty to Exercise Care in Selecting, Retaining, and Supervising Employees

or Agents

§ 4.05. Employer's Duty to Provide Safe Conditions and to Warn of Risk

§ 4.06. Employer's Liability for Intentional Torts Committed Against Employees



Chapter 5. The Tort of Wrongful Discharge in Violation of Public Policy

§ 5.01. Wrongful Discharge in Violation of Public Policy

§ 5.02. Wrongful Discharge in Violation of Public Policy: Protected Activities

§ 5.03. Wrongful Discharge in Violation of Public Policy: Sources of Public Policy



Chapter 6. Defamation, Wrongful Interference, and Misrepresentation

Introductory Note

§ 6.01. Employer's Liability to Employee for Defamation

§ 6.02. Employer Qualified Privilege to Publish Statements Concerning an Employee

or Former Employee

§ 6.03. Employer's Wrongful Interference with an Employee's Employment

or Prospective Employment with Another Employer

§ 6.04. Employer Does Not Wrongfully Interfere with Its Own Employment Relationship

§ 6.05. Employer's Fraudulent Misrepresentation Inducing the Initiation,

Maintenance, or Cessation of an Employment Relationship

§ 6.06. Employer's Negligent Provision of False Information to Employees



Chapter 7. Employee Privacy and Autonomy

Introductory Note

Part 1. Protection of Employee Privacy

§ 7.01. Employee Right of Privacy

§ 7.02. Protected Employee Privacy Interests

§ 7.03. Protected Employee Privacy Interests in the Employee's Physical Person

and in Physical and Electronic Locations

§ 7.04. Protected Employee Privacy Interest in Information of a Personal Nature

§ 7.05. Protected Employee Privacy Interest Against Employer Disclosure

of Employee Personal Information

§ 7.06. Wrongful Employer Intrusions

§ 7.07. Discharge in Retaliation for Refusing Privacy Invasion

Part 2. Protection of Employee Personal Autonomy

§ 7.08. Intrusions upon Employee Personal Autonomy Interests



Chapter 8. Employee Obligations and Restrictive Covenants

§ 8.01. Employee Duty of Loyalty to the Employer

§ 8.02. Definition of Employer's Trade Secret

§ 8.03. Disclosure or Use by Employee or Former Employee of Employer's Trade Secrets

§ 8.04. Competition by Current Employee with Current Employer

§ 8.05. Competition by Former Employee with Former Employer

§ 8.06. Enforcement of Restrictive Covenants in Employment Agreements

§ 8.07. Protectable Interests for Restrictive Covenants

§ 8.08. Modification of Unreasonable Restrictive Covenant

§ 8.09. Rights of Employee to Inventions

§ 8.10. Employer Shop Right to Employee Inventions

§ 8.11. Employee Agreements to Assign Patents



Chapter 9. Remedies

Introductory Note

Part 1. Claims Against Employers

A. Contract

§ 9.01. Damages—Employer Termination in Breach of an Agreement for a Definite

or Indefinite Term of Employment or of a Binding Employer

Promise Limiting Termination of Employment

§ 9.02. Damages—Employer Termination in Breach of a Binding Policy Statement

Limiting Termination of Employment

§ 9.03. Damages—Employer Breach Other Than Termination of Employment

§ 9.04. Injunctive Relief—Employer Breach

B. Tort

§ 9.05. Damages—Employer Breach of Tort-Based Duty

§ 9.06. Injunctive Relief—Employer Breach of Tort-Based Duty

Part 2. Claims Against Employees

§ 9.07. Damages—Employee Breach of Agreement

§ 9.08. Injunctive Relief—Employee Breach of Agreement

§ 9.09. Damages and Restitution—Employee Breach of Tort-Based Duty or Fiduciary Duty

§ 9.10. Injunctive Relief—Employee Breach of Tort-Based Duty or Fiduciary Duty