SPONSOR:

Sen. Marshall ; Rep. Plant

DELAWARE STATE SENATE

141st GENERAL ASSEMBLY

SENATE BILL NO. 292

AN ACT TO AMEND CHAPTER 7, TITLE 19, DELAWARE CODE, RELATING TO THE DOCTRINE OF EMPLOYMENT AT WILL.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

WHEREAS, the doctrine of "employment at-will" simply means that an employer may terminate a working relationship with or without just cause in the absence of an oral or written contract or obligation setting out terms, conditions, or duration of employment; and

WHEREAS, the "employment at-will" concept has its genesis in British Common Law and has been upheld in most courts across the country, including Delaware, with limited exceptions; and

WHEREAS, even though the law has moved in the direction of putting employer-employee relations on a somewhat equal footing courts continue to uphold the doctrine of "employment at-will", including courts in Delaware; and

WHEREAS, it is also becoming clear that the "at-will" doctrine needs to be addressed by state legislatures as a public policy statement that defines what constitutes a wrongful termination; and

WHEREAS, until such time as a lengthy and time-consuming study can be conducted by a special ad hoc committee, consisting of representation from labor, the business community and other interested parties, the doctrine of "at-will" employment should be legally denied as a defense by either the defendant or the plaintiff in a court of law within this State; and

WHEREAS, it is important now for this legislature to step up and fashion a law that is workable and specific in terms of defining what constitutes wrongful termination.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend Chapter 7, Title 19 of the Delaware Code, by adding a new § 705 thereto as follows:

"§ 705. Employment At-Will.

(a) For purposes of this section, the following words shall have the following meanings:

(1) ‘Employee’ means an individual employed by an employer, but does not include:

    1. Any individual employed in agricultural or in the domestic service of any person.
    2. Any individual who, as a part of that individual’s employment, resides in the personal residence of the employer.
    1. ‘Employer’ includes the State or any political subdivision or board, department, commission or school district thereof and any person employing 25 or more persons within the State on a full time basis, but does not include religious, fraternal, charitable or sectarian corporations or associations, except such corporations or associations supported, in whole or in part, by governmental appropriations.
    2. ‘Person’ includes one or more individuals, labor unions, partnerships, associations, corporations, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in a bankruptcy or receivers.
    3. ‘Just cause’ shall mean an act or omission of the employee which is in direct contravention of the employee’s responsibilities or duties, on violation of an expected standard of conduct.
    4. ‘Terminate’ shall mean an involuntary separation from employment or an involuntary reduction in the responsibilities or compensation of an employee. 'Terminate' shall not include a layoff due to a decrease in the employer’s business.
    1. No employer as defined herein shall terminate an employee except upon just cause."

SYNOPSIS

This legislation will deny to an employer or an employee, the British Common Law doctrine of "employment at will" in civil suits in the court system of this State. Courts have tended more and more to put employer and employee relationships on an equal footing. There are a number of experts that believe it is time for the legislature to act, codifying a policy statement, detailing what constitutes wrongful termination.

Author: Sen. Marshall