Kudler: Legal Overview

Thought Questions

1. Are there legal obligations that Kudler must obey when hiring or dismissing an employee?

2. What specific laws affect the safety for each employee?

3. What employment law considerations must Kudler keep in mind as it seeks to hire these new employees?

4. Are there benefits to Kudler Fine Foods for entering into contracts with the local organic farmers?

5. Does exclusivity serve to benefit KFF?

6. Does Kathy have recourse for deficient practices, should the organic farmers not uphold the contractual agreement?

7. Are the organic farmers adhering to and applying the principles and practices deemed acceptable by the National Organic Program (NOP) and the Organic Foods Production Act (OFPA) of 1990?

8. What lengths must KFF and the organic farmers go toward to ensure safety for the purchased organic product?

9. What recourse does KFF have should the organic farmers not uphold their contractual obligations?

Kudler Fine Food store has become a well known local business through selling organic produce, high quality meats, dairy, wines, and much more. As Kudler develops in business, there are changes that are occurring. Kudler has decided to down size her staff due to the new refurbishment to three departments. This change took place due to Kudlers decision on outsources her produce to local farmers. She has to develop a contract that is in agreement with the local farmers while maintaining low risk, guarantee factors, product liability, and regulatory implications. When Kudler wants to reopen these departments, she will hire new staff members. While going through application process, there are several laws, regulations, and rules that must be followed.

Kudler wants to improve her store by using organic produce from local farmers; this step requires Kudler to shut down three departments. There is a worker's compensation for each state and will vary on regulations per state. This system works by employers being covered through private insurance, self-insured, or payment plans to a stat insurance fund. This being said, Kudler can temporary lay off employees for a three months and when refurbishing is complete Kudler can open the positions to those pre existing employees. While Kudler is working on refurbishing her departments, she can offer her employees an unemployment compensation plan. "This law protects employees after their employment has ended; by providing unemployment compensation for discharge workers. Since 1935, federal law has authorized joint federal-state efforts in this area. Today, each state administers its own unemployment compensation system under federal guidelines. The system's costs are met by subjecting employers to federal and state unemployment compensation taxes." As a company and the owner's decision, Kathy can eliminate positions as desired, this is based on The Doctrine of Employment, and this law states that termination of employment is solely decided by the employer. The termination can be indefinite and with no cause, or a good or bad cause. Kudler doesn't hold any responsibility with job security in her business.

There are some exceptions to this rule; an employee can claim wrongful discharge or unjust dismissal. To help an employee make this claim there is another law that can play into this unjust dismissal. The Public Policy Exception allows employees to claim against their employer based on the termination. This claim can be brought to the court, but in most cases each state will act according to pre existing laws, regulation, and common law rules. In order for Kudler to guarantee their positions when the refurbishing is complete, she can offer the Promise by Employers theory. This allows Kathy to make a promise to her employees, this can be offered in her handbooks or benefits plan. These promises can range from company customs to discharge policies. Kudler is held responsible for these claims; if contract is broken then the employee can take Kudler to court.

Besides Kudler worrying about her employees, she also needs to consider her other contacts that are valuable to her company. Local organic farmers and Kudler are currently working on a produce contract and the criteria within the contract. Kudler needs to decide if this market is stable enough to pursue. The Organic products at Kudler Fine Foods prove to be a financially sound investment. "The market for organic products in the United States has grown more than