Agency, Employment, and Labor Relations
Agency, Employment, and Labor Relations tests authority, liability, employment classification, and statutory workplace rights.
Core rules
- Agency arises from assent, benefit, and control. Authority may be actual (express or implied), apparent, or by ratification.
- Apparent authority requires a manifestation by the principal to a third party and reasonable reliance; the agent's own claim of authority is not enough.
- Principal liability: contracts within actual or apparent authority bind the principal; torts by employees within the scope of employment trigger respondeat superior. Independent contractors generally do not, unless inherently dangerous or apparent agency.
- Employment at will may be terminated for any lawful reason, subject to contracts, good faith limits in some states, and statutes.
- Key statutes: Title VII, ADEA, ADA, FLSA, NLRA, OSHA.
Worked example
A principal tells a supplier that its purchasing manager will handle orders. The manager's internal cap is $50,000, but the supplier, unaware, ships $80,000 of goods. The principal is bound by apparent authority: the title was a manifestation by the principal, and the supplier reasonably relied.
Traps
Apparent authority is not created by the agent. Ratification requires knowledge and acceptance of benefits. At-will status does not permit discriminatory or retaliatory termination. An independent contractor can still create apparent agency.