The Covenant of Good Faith and Fair Dealing in Employment ...

William Mitchell Law Review

Volume 16 | Issue 5 Article 2

1990

Working Backwards: The Covenant of Good Faithand Fair Dealing in Employment LawDeborah A. SchmedemannMitchell Hamline School of Law, [email protected]

Follow this and additional works at: http://open.mitchellhamline.edu/wmlr

Part of the Labor and Employment Law Commons

This Article is brought to you for free and open access by the Law Reviewsand Journals at Mitchell Hamline Open Access. It has been accepted forinclusion in William Mitchell Law Review by an authorized administratorof Mitchell Hamline Open Access. For more information, please [email protected].© Mitchell Hamline School of Law

Recommended CitationSchmedemann, Deborah A. (1990) "Working Backwards: The Covenant of Good Faith and Fair Dealing in Employment Law,"William Mitchell Law Review: Vol. 16: Iss. 5, Article 2.Available at: http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

William Mitchell College of LawMitchell Open Access

Faculty Scholarship

1990

Working Backwards: The Covenant of Good Faithand Fair Dealing in Employment LawDeborah SchmedemannWilliam Mitchell College of Law, [email protected]

Publication Information16 William Mitchell Law Review 1119 (1990)

This Article is brought to you for free and open access by Mitchell Open Access. It has been accepted for inclusion in Faculty Scholarship by anauthorized administrator of Mitchell Open Access.

Repository CitationSchmedemann, Deborah, "Working Backwards: The Covenant of Good Faith and Fair Dealing in Employment Law" (1990). FacultyScholarship. Paper 37.http://open.wmitchell.edu/facsch/37

1

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

Working Backwards: The Covenant of Good Faith and Fair Dealing inEmployment Law

AbstractThis article examines the covenant of good faith and fair dealing with respect to employment law. Thisdoctrine is at an interesting stage in its development (or decline) in Minnesota and elsewhere. The articlebegins with the standard exposition of the current state of the law; part I describes the limited scope of thecovenant and its limited force in Minnesota employment law. Part II contains my assessment of the courts'handling of the covenant and the promise this theory holds for Minnesota employees and employers. Mytheses are: First, the courts have thus far failed to develop a sound theory of the covenant of good faith and fairdealing because they have approached the problem backwards. Second, the real promise of the covenant--ifdefined to focus on faithfulness to the parties' bargain--is its potential to prompt employers to act in good faithnot only at the time of discharge, but also during the employment relationship.

KeywordsEmployment discharge, termination of employment, employee’s duty, terms of employment, Minnesotaemployees, bad faith, job security

DisciplinesContracts | Labor and Employment Law

This article is available at Mitchell Open Access: http://open.wmitchell.edu/facsch/37

2

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1119 1990 3

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1120 1990 4

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1121 1990 5

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1122 1990 6

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1123 1990 7

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1124 1990 8

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1125 1990 9

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1126 1990 10

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1127 1990 11

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1128 1990 12

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1129 1990 13

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1130 1990 14

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1131 1990 15

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1132 1990 16

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1133 1990 17

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1134 1990 18

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1135 1990 19

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1136 1990 20

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1137 1990 21

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1138 1990 22

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1139 1990 23

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1140 1990 24

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2

HeinOnline -- 16 Wm. Mitchell L. Rev. 1141 1990 25

Schmedemann: Working Backwards: The Covenant of Good Faith and Fair Dealing in

Published by Mitchell Hamline Open Access, 1990

HeinOnline -- 16 Wm. Mitchell L. Rev. 1142 1990 26

William Mitchell Law Review, Vol. 16, Iss. 5 [1990], Art. 2

http://open.mitchellhamline.edu/wmlr/vol16/iss5/2