“Good Cause Beliefs” in an “At-Will World”? A Focused Investigation of Psychological Versus Legal Contracts

This study assesses the psychological contracts of a group of at-will employees and compares their relevant psychological contract beliefs with the terms of the controlling legal employment contract. In addition, we test specific hypotheses regarding the relationship between employers formal job security policy (employment at-will vs. good cause protection, and employee personal characteristics; equity sensitivity, organizational tenure) to 2 focal psychological contract beliefs (the employers obligation to have a good reason to discharge the employee, and the employees reciprocal obligation to have a good reason to leave his/her employer). These issues are investigated using survey data sampled from 15 diverse U.S. organizations, and independently collected information regarding organizations job security policies. The results provide evidence of a widely shared psychological contract belief that, despite explicit at-will policies, U.S. employers are highly obligated to have a good reason to discharge employees. Further, personal characteristics are more strongly related to the focal psychological contract beliefs than employer job security policies. The theoretical contribution of the study and its practical implications are discussed.     

The Dangers of Misclassifying “Employees”: Microsoft Litigation Emphasizes Distinctions Between Employees and Nontraditional Workers

In the past decade, businesses, for reasons such as greater flexibility and lower total costs, have increased their use of nontraditional workers such as independent contractors and temporary agency employees. The Internal Revenue Service's crackdown on misclassifying employees slowed this growth. Additionally, recent lawsuits by nontraditional workers against employers such as Microsoft Corporation have resulted in some client employers being forced to pay more benefits to nontraditional employees because of employment misclassification and coemployment rulings. Such rulings might reduce or even eliminate the use of some types of nontraditional employees. This paper analyzes the vast array of types of workers that have evolved into the nontraditional work force and the difficulty of defining employee with respect to entitlement to employer benefits. Possible recommendations for employers include auditing present use of nontraditional workers, accurately classifying employees, and taking proper actions to minimize problems in the future.     

Employee-initiated defamation lawsuits: Organizational responses and dilemmas

The fast-growing category of defamation lawsuits in the United States involves actions by employees against their employers. Over the last decade, the courts have increasingly ruled in favor of the employee plaintiffs, thus creating an employee's right to reputation. This article identifies a variety of responses undertaken by organizations to reduce their legal liability and lessen the likelihood of employee defamation lawsuits. We argue that while organizational actions to reduce their legal liability may appear rational, such responses may also be creating situations in which employers, employees, and the public may be the unintended victims of a law without justice. The article concludes with a discussion of balancing the freedom necessary for managers to communicate about employees and the fairness of that communication.     

Wrongful termination: Balancing employer and employee rights—A summary with recommendations

The employer's right to terminate for any cause has been seriously constrained. Recent court rulings and discrimination legislation make employee termination a hazardous undertaking. The prevailing logic is based on the concept of just cause. This concept attempts to balance employer, employee, and society's rights and fit action to the situation. Recommended management action involves little more than careful management of human resources as practiced by well managed firms for many years.     

The practical view of employee rights

Advocates of employee rights, relying upon moral and legal perspectives, have used moral appeals and the threat of legal sanctions to persuade managers to act responsibly. Drawing on a behavioral perspective and analyzing interviews and literature about employee complaints, this paper develops the practical view. This view emphasizes employees' perceptions of their rights, as represented by eight broad categories of asserted rights, and the subtle costs that employees can impose when their standards of proper treatment are violated. While important differences between the behavioral, legal, and moral perspectives are identified, a general standards-setting framework is presented that indicates the complementarity of the three perspectives and the advantages of a multidisciplinary combination.     

Balancing Employee Rights and Responsibilities in Sexual Harassment Cases Following <Emphasis Type="Italic">Faragher</Emphasis> and <Emphasis Type="Italic">Ellerth</Emphasis>: An Employer’s Perspective

In 1998, the United States Supreme Court issued two opinions that delicately balanced the responsibilities of employers and employees in fulfilling Title VIIs goal of eliminating discrimination in the workplace. Those two opinions—Faragher v. City of Boca Raton and Burlington Industries,Inc. v. Ellerth—require employers to implement measures to prevent harm to their employees, but also require employees to take advantage of those measures to avoid harm. Numerous articles have evaluated the responsibilities of the employer under Faragher and Ellerth. But little, ifany, emphasis has been placed on the responsibilities of the employee. This article evaluates the role of the employee in avoiding harm and, analyzing recent decisions from the Second and Third Circuits, argues that the employees responsibilities shouldplay an integral part in evaluating sexual harassment liability.     

The “Good Cause Norm” in Employment Relations: Empirical Evidence and Policy Implications

Critics of the American employment at-will doctrine have argued that it should be abandoned because it is at odds with a societal level norm that employees should only be discharged for good reasons (the good cause norm). This paper examines the extent to which there is conceptual and empirical support for the existence of such a norm. Theoretical perspectives supporting the norms existence are discussed and integrated, and an interdisciplinary review of relevant research is provided. In light of the support that is found for the existence of a good cause norm in the American workplace, it is proposed that the current employment at-will default rule be changed to a waivable employee right to be discharged for good cause only.     

Sexual harassment in organizations

Sexual harassment is now recognized as a potential problem for most organizations. The purpose of this paper is to provide an introduction to the various aspects of sexual harassment as a problem: its definition (including both the economic injury and hostile environment types of harassment), its characteristics, and a discussion of how to deal with such problems in the workplace. Organizations are encouraged to act affirmatively by (1) establishing a policy prohibiting sexual harassment in the organization; (2) establishing and making employees aware of a grievance procedure for sexual harassment complaints; and (3) educating employees about the problem of sexual harassment through a combination of awareness and experiential training techniques.     

An essay on organizational citizenship behavior

This article advocates a more comprehensive understanding of job performance and organizational citizenship behavior (OCB) than that employed by earlier researchers on those topics. Using the intellectual heritage of the word citizenship from political philosophy and related disciplines, OCB is positioned as the organizational equivalent of citizen responsibilities, of which there are three categories: obedience, loyalty, and political participation. Two other key citizenship concepts, relational ties and citizen rights, are described, and a set of ten research propositions is offered relating the citizenship concepts to one another. Suggestions for other areas of investigation are also provided. Finally, the advantages of using OCB as a global measure of individual behavior at work are defended.     

Employee rights and issue-based inquiry: Reflections on papers in the special issue “Law Without Justice”

The articles in this special issue Law Without Justice are reviewed. Although (like many other students of employee rights) the authors did not conceptualize rights adequately, they advanced understanding of employee rights by linking the analysis of concrete rights to the larger social context. Further, by directing attention to the processes of social construction which affect the relationship betweende jure andde facto rights, the articles help to fill an important gap in the existing literature. Some implications for research on employee rights (and applied social science more generally) driven by social issues rather than theories are explored.     

Employee drug testing: A constitutional perspective

The proliferation of employee drug testing by federal and state governments and by private sector employers acting pursuant to governmental directives has led to a steadily growing number of lawsuits raising constitutional challenges to such testing. Most of these cases have been based on the Fourth Amendment's prohibition of unreasonable searches and seizures. In 1989, the Supreme Court addressed the constitutionality of employee drug tests for the first time in two cases,Skinner v. Railway Labor Executives' Ass'n andNational Treasury Employees Union v. Von Raab. Recognizing that urinalysis drug testing constitutes a search for Fourth Amendment purposes, the Court determined the constitutionality of the drug tests by balancing the governmental interest in the testing against the privacy interest of the employees and, in both cases, upheld the drug testing at issue. TheSkinner andVon Raab decisions provided guidelines for analyzing Fourth Amendment challenges to employee drug testing, and the lower courts are now in the process of applying and refining these guidelines. Constitutional challenges to employee drug testing programs have also been based on the due process clause and the equal protection clause of the Fourteenth Amendment and on the First Amendment's guarantee of freedom of religion. Unlike Fourth Amendment claims, however, these claims have rarely been successful.     

Employee communication strategies for organizational crises

Perhaps at no time is it more important for an organization to communicate sensitively and openly with its employees than during a crisis. Such efforts, however, are driven by management's view of a crisis situation, which frequently fails to consider employees' stress-induced responses to management communication behavior. This paper draws on research findings on life situations, crisis management, communication, stress, psychology, and information processing, to analyze employees' emotional, cognitive, and information needs when confronted by organizational crises. The authors present a receiver-oriented Employee Crisis Communication Model. This model outlines employees' stress-invoked perceptual and behavioral responses to major crises, which may, among other things, seriously impair their ability to handle information and make decisions. The authors then discuss the implications of applying certain communication strategies to crisis environments.     

The “Devil Theory” One More Time

Organized labor membership as a percentage of the labor force has been doing poorly during recent decades. Many managers still do not appreciate that union fortunes are closely related to workers' perceptions of their overall well-being. The Devil Theory of unions, i.e., they are punishment for employer insensitivity or worse, contains at least a grain of truth. Perceived job insecurity, unfairness and ill treatment generally—stimulated by new AFL-CIO leadership committed to active organizing—could well reverse a decades-long trend in union membership losses.     

Work Values and Preferences for Employee Involvement in the Management of Organizations

This study has 3 objectives: to develop a scale to measure preferences for involvement in management (PIM), to examine if PIM are related to work values (altruism, pride in craftsmanship, collectivism, and individualism), and to examine if PIM are affected by a bundle of work values. Data are taken from 749 participants to develop a psychometrically appealing scale for measuring PIM. Using the universalistic perspective, we predict a positive relationship between PIM and altruism, pride in craftsmanship, and collectivism, and a negative relationship between PIM and individualism. Using the synergistic perspective, we hypothesized that PIM are likely to be positively affected by a bundle of work values. Our results support the universalistic perspective because PIM are positively related to altruism, pride in craftsmanship, and collectivism, and negatively related to individualism. Our results did not support the synergistic perspective. In the final section of the paper, we outlined the implications of our results for organizational practice and public policy.     

Hirschman's loyalty: Attitude or behavior?

Over the past two decades there has been much controversy over what Hirschman intended by the term loyalty in his bookExit, Voice, and Loyalty. Some have interpreted Hirschman's loyalty as an attitude that deters exit and promotes voice. Others have interpreted Hirschman's loyalty as a distinct behavior, like exit and voice, that results from dissatisfaction. This article examines both views of loyalty simultaneously. First, comprehensive and reliable scales to measure the behavioral responses to dissatisfaction are developed. Second, the relationship between loyalty and the behavioral responses to dissatisfaction are examined. Results of this research indicate that both interpretations are important and together help us better understand how employees behave when they are dissatisfied.     

Psychological and implied contracts in organizations

Two forms of unwritten contracts derive from relations between organizations and their members. Psychological contracts are individual beliefs in a reciprocal obligation between the individual and the organization. Implied contracts are mutual obligations characterizing interactions existing at the level of the relationship (e.g., dyadic, interunit). Employee/employer relations and changing conditions of employment give rise to issues not addressed in conventional transaction-oriented models of motivation and individual responses. The development, maintenance, and violation of psychological and implied contracts are described along with their organizational implications.Promise is most given when least is said. (George Chapman,Hero and Leander, 1598)     

On-duty and Off-duty: Employee Right to Privacy and Employer’s Right to Control in the Private Sector

The changing legal landscape of the right of the employer to control and monitor employee behavior is examined. Two distinct areas are defined: behavioral monitoring and behavioral restrictions. Relevant statutory laws and the developing common law are discussed. We also examine potential employee reactions to such policies by evaluating the reactions of graduate students to six employer policies including weight restrictions, grooming requirements, use of GPS locators, drug testing, ban on off-duty smoking, and email and internet monitoring. Students responded to these policies by determining the reasonable interest of the employer in the behaviors being monitored or controlled and the manner in which policies were implemented. Their comments suggest that employees may accept some level of monitoring or behavioral restrictions if the employer can make a convincing social account of the need for a policy. Additionally, the policy must be clearly communicated and properly implemented. However, restrictions on off-duty behavior were typically poorly received with the exception of illegal drug use.     

Addressing the Growing Inadequacies of the <Emphasis Type="Italic">Ellerth</Emphasis>/<Emphasis Type="Italic">Faragher</Emphasis> Affirmative Defense: Fashioning a Sensible and Feasible Solution

Public policy seeks an equitable balance between the rights and duties of both employers and employees in creating a workplace free of sexual harassment. This goal is particularly difficult to achieve when supervisors create a hostile work environment. The U.S. Supreme Courts decisions in Ellerth and Faragher created an affirmative defense against vicarious liability for employers, but subsequent applications of these rulings have been inconsistent and problematic. Courts and legislators need to (1) choose the appropriate standard of employer liability for sexual harassment committed by supervisors, and (2) decide what, if any, defenses are available to employers when employees bring claims of sexual harassment. We conclude that holding employers strictly liable while allowing for the limitation of damages based on avoidable consequences, as recently adopted by the California Supreme Court in McGinnis, is preferable to other liability standards and defenses.     

Just laid off,but still a “good citizen?” only if the process is fair

Recent United States Congress legislation (the WARN Act of 1988) mandates that organizations must provide at least 60 days notice before a layoff of 50 or more employees can be instituted. As a consequence, individuals who are notified of their layoff often remain in their jobs for a significant period of time-and managers hope that these people will be good organizational citizens during thisremaining time. This article identifies different psychological factors that could explain why individuals would remain good citizens, even after notification of their impending termination. In a survey of 147 skilled employees who received notification of their layoffs, we found that the perceived fairness of the layoff process was the primary factor influencing their citizenship behavior. Additional analyses suggested that the perceived adequacy of the explanation of the layoffs, and whether the layoff victims were treated with respect and dignity, were the primary factors influencing the perceived fairness of the layoff process. The theoretical implications of these results are discussed.     

Clarifying the Boundaries of Sexual Harassment and Employer Liability: Judicial Application of Harris v. Forklift Systems, Inc.

Many had anticipated that Harris v. Forklift Systems, Inc., the first significant Supreme Court ruling on sexual harassment since 1986, would clarify the boundary between merely offensive conduct and unlawful conduct, and would offer greater guidance on when an employer is liable for the creation of an abusive (or hostile) work environment. However, the Harris court handed down only a short, narrow decision that left these areas largely unresolved, and, accordingly, it was widely criticized for circumventing contentious issues and for perpetuating the vague framework under which abusive work environment claims are now analyzed. This article examines a representative cross-section of federal and state decisions that have interpreted and applied Harris to evaluate whether courts have achieved any consensus on what constitutes an abusive work environment and on when an employer is liable for this type of sexual harassment.