Delaware House Bill 18 (Prior Session Legislation)

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Spectrum: Partisan Bill (Democrat 4-0)
Status: Introduced on March 10 2009 - 25% progression, died in chamber
Action: 2009-04-08 - Reported Out of Committee (LABOR) in House with 2 Favorable, 4 On Its Merits
Text: Latest bill text (Draft #1) [HTML]

This act is based on the Model Employment Termination Act promulgated by the National Conference of Commissioners on Uniform State Laws in 1991. The basic philosophy of this act is one of compromise and balancing the competing interests of employers and employees. Thus, although covered employees are granted an expanded substantive right to “good cause” protections against termination, available remedies are limited to reinstatement, with or without backpay, and severance pay when reinstatement is unfeasible. Compensatory and punitive damages are eliminated, except in cases where an employer retaliates against an individual for filing a complaint, giving testimony or otherwise participating in proceedings under this Subchapter. Pursuant to this act, employees who have worked for an employer for more than one year may only be fired for “good cause.” Part-time employees working less than 20 hours per week are not covered by the act. As to covered employees, this act extinguishes all common law rights and remedies against an employer. This act, however, does not displace or extinguish any rights granted to an employee under any Federal or Delaware statutes, administrative rules or regulations having the force of law. Similarly, this act does not displace or extinguish any rights granted to an employee under a collective-bargaining agreement or an express oral or written agreement relating to employment. Employees not covered by the provisions of this act retain all common law rights and remedies. This act does not apply to the State or its subdivisions or agencies, municipal corporations or private employers with less than five employees. “Good cause” for a termination is defined as: (i) a “reasonable basis” related to an individual employee in view of factors such as conduct on the job, job performance and employment record; or (ii) the exercise of business judgment in good faith by the employer. The requirement of good cause for a termination does not apply to a termination which occurs at the expiration of express term of employment or upon completion of the specified task or project to which the employment related. The provisions of this act cannot be waived except by an express written agreement of the employer and employee providing for severance pay in the event the employee is terminated without good cause. Any covered employee whose employment is terminated may file a complaint and demand for arbitration with the Department of Labor within 180 days of the effective date of the termination. An employer seeking a declaration that good cause exists for a termination may also file a complaint and request for arbitration. Arbitration pursuant to this act shall be governed by Delaware’s Uniform Arbitration Act. Either party to an arbitration proceeding may appeal the arbitrator’s award to the Superior Court of the County in which the termination occurred. The act will take effect 180 days after enactment to allow the Department of Labor to promulgate regulations implementing this act.

An Act To Amend Chapter 7, Title 19 Of The Delaware Code Relating To The Doctrine Of Employment At Will And Protection From Wrongful Termination.

Sen. Margaret Henry [D]

Rep. James Johnson [D]

Rep. Michael Mulrooney [D]

Rep. Hazel Plant [D]

Date	Chamber	Action
2009-04-08		Reported Out of Committee (LABOR) in House with 2 Favorable, 4 On Its Merits
2009-03-26		Amendment HA 1 - Introduced and Placed With Bill
2009-03-10		Introduced and Assigned to Labor Committee in House

Type	Source
Summary	http://legis.delaware.gov/LIS/lis145.nsf/2bede841c6272c888025698400433a04/b8b7e6e64fa773268525754b0063cf76?OpenDocument
Text	http://legis.delaware.gov/LIS/lis146.nsf/vwLegislation/HB+18/$file/legis.html?open