Education Law Publications
The firm publishes a monthly "Issue of the Month" on current issues or matters of interest in the education law area. If you want more information about our education law practice or a copy of any of our articles, contact David Duff at dduff@ddtwb.com SCHOOL LAW
"ISSUE OF THE MONTH"
August 2005 New Case Broadens Scope of “At-Will” Employment This month, the South Carolina Supreme Court decided a case that reinforces school districts’ rights to employ certain teachers and other employees under the terms of an “at-will” employment agreement. The case, Cape v. Greenville County School District , involved a teacher who was hired mid-year under contract terms which contained language describing the employment relationship as “at-will” and terms terminable-at-any-time. When the district terminated the teacher two months after she was employed, the teacher challenged her dismissal under a breach of contract theory. However, because the contract provided that she was an “at-will” employee, the Court found that the district was within its rights in separating her from employment before the end of the school year. By way of background, Ms. Cape was a special education teacher who was hired in December 2001 to work for the remainder of the 2001-02 school year. Because Ms. Cape would be working less than 152 days, she was not classified as a contract teacher under State law. Instead, she was hired under a letter of agreement, which contained the following provision, typed in capital letters:
THIS IS AN AT-WILL EMPLOYMENT CONTRACT. IT MAY BE TERMINATED AT ANY TIME FOR ANY REASON OR FOR NO REASON BY EITHER EMPLOYER OR EMPLOYEE. EMPLOYEE AGREES THAT THERE EXISTS NO RIGHT TO CHALLENGE TERMINATION OF THIS CONTRACT BY EMPLOYER. EMPLOYEE FURTHER AGREES THAT THIS IS A NONRENEWABLE CONTRACT AND THERE EXISTS NO RIGHT TO CHALLENGE ANY FAILURE TO CONTINUE THIS CONTRACT BEYOND THIS TERM.
Ms. Cape began her teaching duties on January 2, 2002, and was terminated on February 8, 2002. Thereafter, she sued the district for lost earnings, claiming that under her employment contract, she had a right to employment through the end of the school year. Before trial, the circuit court granted summary judgment to the district and dismissed the case. Ms. Cape appealed that decision. As a general rule, an employee who is hired in South Carolinafor an indefinite period of time is presumed to be hired as an “at-will” employee, who may quit or be terminated without notice or cause. Conversely, absent just cause for termination, an employee who is hired for a specific length of time generally is presumed to have the right to employment for that full term, and may sue the employer if she is terminated before the contract period expires. Until the Cape case, our courts had not addressed whether an employment contract for a specific length of time could, by adding appropriate language, alter an employee’s status to “at-will,” with no right to employment for the full term specified in the contract. In addressing that issue in Cape , the South Carolina Supreme Court found that although an employee who is hired under a contract for a specific duration of employment is generally not considered “at-will,” Cape and the district had, “by an express contract provision, altered the presumption that employment for a definite term is terminable only upon just cause, and replaced that presumption with an at-will termination clause.” Therefore, although Cape’s employment contract was for a specific term, it was terminable at-will by either party. A district cannot alter its obligations under South Carolina law by adding a special condition to a contract covered by the Teacher Employment and Dismissal Act. Under the Act, a teacher must be advised, in writing and on or before April 15, whether s/he will be offered employment for the upcoming school year. If the district plans to either terminate or non-renew a continuing contract teacher’s employment, that teacher has the right to a formal hearing before the board regarding the decision. Teachers working under an annual contract have the right to an informal hearing regarding a termination or non-renewal decision. State law also requires that if a continuing contract teacher’s performance may lead to non-renewal of the employment contract, the teacher’s supervisor(s) must: 1) provide written notice to the teacher regarding the performance deficiencies; 2) make reasonable efforts to assist the teacher in correcting the deficiencies; and 3) allow reasonable time for improvement. The Cape decision will not affect these rights provided by law. However, many other school district employees have no legal right to continued employment, and may be considered “at-will.” This would include non-certified support staff, teachers who are hired mid-year to fill a vacancy, and teachers who are hired after they have completed participation in the TERI program. To notify those employees that they are considered “at-will,” and terminable without notice or cause, districts should ensure that the applicable Letter of Agreement contains a special condition similar to the one in Capes . With that in place, districts should be able to end the employment relationship prior to the end of the school year, should it become necessary. Be aware, however, that if the district has a policy or handbook that provides employees with greater rights, an employee may have grounds to challenge the termination. For example, absent a conspicuous disclaimer, an employee handbook that outlines a specific disciplinary process constitutes a “contract” which protects the employee from termination unless the entire disciplinary process has been followed. South Carolina law provides that to be considered “conspicuous,” the disclaimer “must be in underlined capital letters on the first page of the document and signed by the employee.” Therefore, districts should review, and if appropriate, revise their policy manuals and employee handbooks so that non-contractual employees clearly understand that their employment is considered by the district to be “at-will,” and terminable at any time, either with or without cause. For questions or assistance in preparing employment contracts or reviewing policies/handbooks, please contact Duff, White, and Boykin, LLC at 1.800.639.1677. Past Issues of the Month may be accessed at www.ddtwb.com . |
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