Free Practice Question
RC · Reading Comprehension
605-655
Short Passage - Social Science
Reading Passage
Historically, relations between workers and employers in the United States have often been characterized by the employment-at-will doctrine, according to which the duration of employment is determined by the employer and the grounds for termination are limited only by the provisions of contracts and specific statutes. Many state courts and legislatures have reevaluated this doctrine and have modified it by expanding the concept of wrongful termination, thereby increasing employer liability. Some economic theorists suggest that such changes tend to reduce employment in states that enact them, because protecting workers against wrongful termination raises the cost of labor to employers: firms will tend to spend more time and money screening potential employees, be reluctant to terminate less-productive workers, and incur greater legal expenses. In a study that took into account differences among states, researchers Dertouzos and Karoly concluded that states with wrongful-termination laws experienced a two percent to five percent drop in their employment rate as a result of adopting these laws. They also found that the impact on employment appears to be smallest in manufacturing, where unions have already institutionalized similar protection, and in small firms, perhaps because those firms' lesser ability to pay damages makes it less profitable for employees to file wrongful-termination lawsuits against them.
The primary purpose of the passage is to
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explore the legal consequences of terminating a worker's employment
B
define the employment-at-will doctrine and chronicle its historical evolution
C
examine reasons underlying a trend away from the employment-at-will doctrine
D
advocate increased protection for workers against wrongful termination by employers
E
discuss a possible drawback of state laws intended to protect workers against wrongful termination
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Difficulty
605-655
Type
RC
Category