Employee Free Speech in the Workplace: Using the First Amendment As Public Policy for Wrongful Discharge Actions

Total Page:16

File Type:pdf, Size:1020Kb

Employee Free Speech in the Workplace: Using the First Amendment As Public Policy for Wrongful Discharge Actions Employee Free Speech in the Workplace: Using the First Amendment as Public Policy for Wrongful Discharge Actions LISA B. BINGHAM* I. INTRODUCTION A private-sector employer in the United States may fire an employee for the employee's political views. 2 During the 1992 presidential campaign, employers required that employees sit through a presidential candidate's stump speech as part of a company-wide captive audience. 3 Employees commented to * Assistant Professor of Public and Environmental Affairs, Indiana University; J.D., University of Connecticut, 1979; Partner, law firm of Shipman & Goodwin, Hartford, CT 1979-89. This research was supported by a grant from The Fund for Labor Relations Studies, Ann Arbor, MI. The author thanks Professor Theodore St. Antoine, University of Michigan School of Law, for his comments on the manuscript and helpful suggestions. Professor Harry Pratter, Indiana University School of Law, also shared his insights and improved the manuscript with his review. The author gratefully acknowledges the invaluable assistance of Clark Johnson, who served as research assistant on this project. I As used in this paper, "private sector" employment includes all but government employment. The term includes nonprofit employers and private employers with substantial government contracts or grants. "Public sector" employment includes employment by federal, state, and local government, including municipalities, school boards, state institutions of higher education, and similar boards or commissions that represent political subdivisions of a state. 2 There are limited areas of protection for certain categories of expression. For example, the National Labor Relations Act protects speech on unionization. 29 U.S.C. §§ 157, 158(c) (1988). See generally Staughton Lynd, Employee Speech in the Private and Public Workplace: Two Doctrines or One?, 1 INDus. REL. L.J. 711 (1977) (arguing that similar limits are applied to public employees and unionized private sector employees who engage in disruptive speech). To varying degrees, the developing cause of action for wrongful or retaliatory discharge protects whistleblowers. See generally 1 LEx K. LARSON, UNJUST DISMIsSAL (1993); IRA MICHAEL SHEPARD Er AL., WrrHour JuST CAUSE (1989); PROTECING UNORGANIZED EMPLOYEES AGAINST UNJUST DISCHARGE (Jack Steiber & John Blackhorn eds., 1983). Most states protect employees' right to vote, see infra notes 48-50 and accompanying text, but only Connecticut explicitly protects employees' free speech rights, CONN. GEN. STAT. § 31-51q (1992). For more detailed discussion of employees' existing protection, see Terry Ann Halbert, The First Amendment in the Workplace: An Analysis and Call for Refonn, 17 SErON HALL L. REv. 42 (1987). 3 Rowland Evans & Robert Novak, Bush Takes Message of Care to New Hampshire, OHIO STATE LAW JOURNAL [Vol. 55:341 reporters that they did not feel free to leave. 4 A CEO sent faxes to regional managers strongly recommending that they purchase seats at a candidate's fundraiser if they intended to have a future with the corporation; one who failed to do so lost his job.5 These examples illustrate the trend that employees are increasingly experiencing pressure to support the political candidate or cause that the employer believes best serves the corporate interest. This Article examines this trend and suggests a framework for a private legal remedy when the employer crosses the boundary from influence to coercion by dismissing an employee in retaliation for that employee's exercise of the right to free speech. First, the Article addresses how the problem has evolved and the traditional reluctance of courts to protect employees' political activities from employer retaliation. Second, the Article discusses policy reasons why state courts should use the First Amendment in wrongful discharge actions to protect employee political speech and discusses the results of a survey on employer influence upon employee political activities. 6 Third, it THE HmAL)-TMms (Bloomington, IN), Jan. 18, 1992, at A6. 4 The courts have long held that the right to be free from unwanted speech is itself a form of free speech. See, e.g., Rowan v. United States Post Office Dep't, 397 U.S. 728 (1970). 5 Neiss v. Cherry Payment Sys., Inc., No. 92-C-403-S (W.D. Wis. July 17, 1992). The plaintiff alleged his employer fired him the day after he refused to contribute to the President's Dinner, a Republican fundraiser for House and Senate candidates. Federal District Court Judge Shabaz denied the employer's motion to dismiss a wrongful discharge claim made under Wisconsin law. 6 The term "wrongful discharge" refers to causes of action sounding in tort or contract. Historically, all employment was terminable at will, that is, with or without cause. 1 LARsoN, supra note 2, § 2.04; Jay M. Feinman, The Development of the Employment at Will Rule, 20 AM. J. LEGAL HIST. 118 (1976). Since the late 1970s, state courts have begun to limit the doctrine of employment at will through a civil cause of action for retaliatory or wrongful discharge. 1 LARSON, supra note 2, § 2.07. In general, an employee may recover damages if the employer terminated employment in retaliation for employee conduct that is protected by a substantial and important public policy. The employee has the burden of proving that the conduct is protected, that the public policy at stake is sufficiently important, and that the employer actually fired the employee in retaliation for the conduct. The burden of proof then shifts to the employer. The employer may avoid liability by proving a permissible ground for dismissal. What represents a sufficiently important public policy varies from state to state. The highest courts of more than two-thirds of the states have recognized the cause of action. Id. See generally Michael A. DiSabatino, Annotation, Modem Status of Rule That EmployerMay DischargeAt-Will Employee for Any Reason, 12 A.L.R. 4TH 544 (1982). This Article suggests a remedy that uses the First Amendment and comparable state constitutional provisions as a source of public policy in wrongful discharge actions under state law. Although in some circumstances state constitutions may provide broader protection for speech than does the First Amendment, this Article does not 1994] EMPLOYEE FREE SPEECH addresses the constitutional issue implicit in courts' condoning employer conduct that infringes upon employee free speech rights. Specifically, in the common law tort of wrongful discharge, state courts have created a classification based on the content of a private-sector employee's speech. State courts do recognize a cause of action when an employee speaks out on violations of law or when the employee claims benefits to which she is legally entitled but do not recognize a cause of action when an employee engages in political speech outside the workplace. This classification disadvantages political speech, the category of speech courts traditionally give the highest protection in First Amendment jurisprudence. State courts engage in state action within the reach of the Constitution by creating this classification. Courts may avoid the constitutional problem by using the First Amendment as the basis for a wrongful discharge claim. Finally, this Article examines the limits of this new remedy, which can be drawn from analogous public-sector cases. In the public sector, an employee may speak out on a matter of public concern, but the courts will weigh the employee's interest in speech against the public employer's interest in the efficient operation of the workplace. In addition, courts have recognized exceptions for certain categories of policy-maldng and confidential employees, who forfeit certain First Amendment protections by virtue of their job function. Courts should move to recognize the tort of wrongful discharge in instances when an employer retaliates against an employee for nondisruptive political speech. II. How COURTS TREAT EMPLOYER INTERFERENCE WITH EMPLOYEE FREE SPEECH RIGHTS In Coppage v. Kansas, the Supreme Court held that it did not represent any form of duress, coercion, or undue influence for an employer to fire an employee who joined a labor union in breach of a written agreement that he separately consider state law protection of free speeh. The basic argument would apply equally to state and federal constitutional provisions. This Article does not attempt a comprehensive review of the ever-growing literature on wrongful discharge and employment at will. For a review of major pieces in the literature, see PAUL C. WEILER, GOVERNING THE WORKPLACE (1990). See also Lawrence E. Blades, Employment at Will vs. Individual Freedom:Limiting the Abusive Exercise of Employer Power, 67 COLuM. L. REv. 1404 (1967); Martin H. Malin, Protectingthe Whistleblowerfrom RetaliatoryDischarge, 16 U. MIcH. J.L. REF. 277 (1983); Clyde W. Summers, Individual Protection Against Unjust Dismissal: YTime for a Statute, 62 VA. L. REV. 481 (1976); Note, Protecting At Will Employees Against Wrongful Discharge: The Duty to Tenninate Only in Good Faith, 93 HArY. L. REv. 1816 (1980). OHIO STATE LA WJOURNAL [Vol. 55:341 would not do so.7 Apart from the tumultuous history of early labor 7 Coppage v. Kansas, 236 U.S. 1 (1915). The Kansas legislature had adopted a statute forbidding employers to exact a promise not to join or retain membership in a labor organization as a condition of securing or retaining employment. In an early application of substantive due process, the Court held that this statute infringed upon the Fourteenth Amendment right of freedom of contract: [W]e have nothing to do with any question of actual or implied coercion or duress, such as might overcome the will of the employ6 by means unlawful without the act. In the case before us, the state court treated the term "coerce" as applying to the mere insistence by the employer, or its agent, upon its right to prescribe terms upon which alone it would consent to a continuance of the relationship of employer and employ6. Id.
Recommended publications
  • A Perfect Storm? Reimagining Work in the Era of the End of the Job
    EPIC 2014 | Paper Session 1: Ethnographic Cases A Perfect Storm? Reimagining Work in the Era of the End of the Job MELISSA CEFKIN IBM Research OBINNA ANYA IBM Research ROBERT MOORE IBM Research Trends of independent workers, an economy of increasingly automated processes and an ethos of the peer-to-peer “sharing economy” are all coming together to transform work and employment as we know them. Emerging forms of “open” and “crowd” work are particularly keen sites for investigating how the structures and experiences of work, employment and organizations are changing. Drawing on research and design of work in organizational contexts, this paper explores how experiences with open and crowd work systems serve as sites of workplace cultural re- imagining. A marketplace, a crowdwork system and a crowdfunding experiment, all implemented within IBM, are examined as instances of new workplace configurations. “It’s like old age. It’s the worst thing, except the alternative.” (A local farmer when asked to take on more work in Downton Abbey, Season 4) INTRODUCTION: WHITHER THE JOB, LONG LIVE WORK! A perfect storm in the world of work may be forming. Consider the following dynamics. In the United States, the Affordable Care Act is projected to enable freedom from job lock, or the need to stick with an employer primarily for benefits, particularly health insurance (Dewan 2014) This comes on the heels of the Great Recession which has pushed many into “the independent workforce” a population some already consider undercounted, under- represented (Horowitz 2014) and likely growing (MBO Partners 2013, US Government Accountability Office 2006).
    [Show full text]
  • Breaking Job Lock (Kimbrell)
    Breaking The Job Lock: Imagine A World Where Pursuing Our Passions Pays the Bills By Andrew Kimbrell The alarm clock explodes with a high-pitched screech. It is 6:30 a.m.--another dreaded Monday. Kids need to be dressed, fed, rushed off to school. Then there is 40 minutes of fighting traffic and the sprint from the parking lot to your workstation. You arrive, breathless, just in the nick of time. Now is the moment to confront the week ahead. As usual, you are in overload mode. You seem to be working faster and faster but falling farther behind. What is worse, your unforgiving bosses think everything gets accomplished by magic. But you do not dare do or say anything that might jeopardize your job. (It hurts just to think of those swelling credit card balances.) At the end of the day, when you are drained and dragged out, it is time to endure the long drive home, get dinner ready, and maybe steal a few hours in front of the TV. Then to sleep, and it starts all over again. Sound familiar? Despite utopian visions earlier in this century of technology freeing us all from the toil of work, we are now working harder than ever--with little relief in sight. In a recent poll, 88 percent of workers said their jobs require them to work longer (up from 70 percent 20 years ago), and 68 percent complained of having to work at greater speeds (up from 50 percent in 1977). And as if all this were not grim enough, the most discouraging aspect of our jobs is that they seem to accomplish little of lasting value.
    [Show full text]
  • [Job] Locked and [Un]Loaded: the Effect of the Affordable Care Act Dependency Mandate on Reenlistment in the U.S. Army
    Upjohn Institute Policy and Research Briefs Upjohn Research home page 4-2-2019 [Job] Locked and [Un]loaded: The Effect of the Affordable Care Act Dependency Mandate on Reenlistment in the U.S. Army Michael S. Kofoed United States Military Academy Wyatt J. Frasier United States Army Follow this and additional works at: https://research.upjohn.org/up_policybriefs Part of the Labor Economics Commons Citation Kofoed, Michael S. and Wyatt J. Frasier. 2019. "[Job] Locked and [Un]loaded: The Effect of the Affordable Care Act Dependency Mandate on Reenlistment in the U.S. Army." Policy Brief. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/pb2019-7 This title is brought to you by the Upjohn Institute. For more information, please contact [email protected]. MARCH 2019 POLICY BRIEF [Job] Locked and [Un]loaded The Effect of the Affordable Care Act Dependency Mandate on Reenlistment in the U.S. Army Michael S. Kofoed and Wyatt J. Frasier BRIEF HIGHLIGHTS One concern that policymakers have regarding employer-sponsored health insurance is “job lock” and its effects on labor markets. Workers value health benefits, but n We test whether access to parents’ health benefits are not transferable across jobs. Thus, a worker could want to pursue health insurance led soldiers to not a more desirable job opportunity but may choose not to because that worker might reenlist in the Army. lose her health insurance coverage. This condition could cause a worker to forgo career satisfaction or promotion or advancement. Policymakers worry about this n The ACA allowed people under phenomenon because it may limit worker effectiveness and lower the incentive toward age 26 to stay on their parents’ health entrepreneurship.
    [Show full text]
  • T-98 Statement Before the House Ways and Means Committee
    T-98 Statement Before the House Ways and Means Committee , Subcommittee on Health Hearing on Health Insurance Portability by Paul Fronstin, Research Associate Employee Benefit Research Institute Washington, D.C. 12May 1995 The views expressed in this statement are solely those of the author and should not be attributed to the Employee Benefit Research Institute, its officers, trustees, sponsors_, or other staff. The Employee Benefit Research Institute is a nonprofit, nonpartisan, public policy research organization. Suite 600 ._ 2121 K Street. NW Washington. DC 20037-1896 202-659-0670 Fax 202-775-6312 SIJI-_IARY •The original purpose of the coverage continuation provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) was to assure workers an ability to maintain health insurance during a period of transition to other coverage. COBRA requires employers to offer continued health coverage to employees and their dependents when certain qualifying events occur. • Of the 14.5 percent of employees and dependents eligible for COBRA coverage, about 1 in 5 (19.6 percent) elected the coverage, according to 1994 survey data, up from 19.3 percent in 1993 but down from a high of 28.5 percent in 1990. • Average COBRA costs were $5,584, compared with $3,903 for active employees, according to the 1994 survey. Thus, average continuation of coverage costs were 149 percent of active employee claims costs, and, assuming employees electing coverage were paying 102 percent of the premium, employers were paying for approximately one-third (32 percent) of the total costs for continued coverage. • Difficulties surrounding COBRA coverage according to survey respondents included adverse selection/claims cost (36 percent); difficulties in collecting premiums (36 percent); administrative difficulty such as paperwork, record keeping, etc.
    [Show full text]
  • Consent Letter for Company Outing
    Consent Letter For Company Outing Francesco still riving predictively while beribboned Andrew speeding that commendableness. Roast Adams thumb-index that preadaptations glare darn and bulk barelegged. Hammy Arturo ascertains fleeringly, he steels his doubletrees very aggressively. Undertake a people from work study we sincerely hope. FORM LM-10 Employer Reports Frequently Asked Questions. Space concerns that company outing for your consent for it out our sample letter, or email providers. Notice in person at home css: yes no longer required when enter this? In letter company for. You've immediately had an amazing corporate event Everyone forged new connections realized new possibilities and trim out inspired and. Add an consent form or clerical services, consent letter for company outing this action, we thank everyone will celebrate with disabilities can. Site by completing the applicable Form and providing the requisite Registration Data. Sample letter requesting photograph & permission to reprint it. Discover endless when sending work in its rights. They rape be stored securely until the island street party, loan may someone be unable to download them resist all. Generate leads for company assets that can. Correct the presence of feedback and does good news assignment desks and the incorrect price listing standards for company outing letter was able to. Sample Letters Illinois State butterfly of Education. Their broad goal example to greet your claim quickly, or feel comfortable with signing the form. Because nor the lodge of filling them clockwise, or defer recording items that manner be expensed. For company he or consent from death certificate of companies, why you may be.
    [Show full text]
  • Ideas for Special Events
    IDEAS FOR SPECIAL EVENTS Director/Manager Auction Get your managers/director to donate one hour to your campaign. Auction off each executive to the highest bidding employee with proceeds to benefit your SECC Campaign. The executive then must take over the employee's job for the appointed hour. Lunch Box Auction Employees supply lunches to be auctioned. Encourage management participation. Display lunches. Give prizes for the most creative, nutritional, elegant, and humorous lunch. Tie in a speaker from an SECC Charity that operates a food pantry. Have your Director and other management serve and bus tables at a luncheon. Sell tickets! Casual Days Sell casual day badges allowing employees to dress casually on certain days. Employees purchase badges for $5 each. Designate certain casual days as "crazy days" and encourage your employees to show their wild side, i.e., Stupid Hat Day, Outrageous Socks Day, Sports Team Day, or Dress Up Day. Baby/Pet Picture Match Game Invite employees to try their luck matching baby and/or pet pictures of management. Award the entry with the most right answers a paid holiday off or some other fun incentive. Charge employees $5 per ballot. Manager Car Wash Employees donate $5 to have their car washed at high noon by their "boss." Charge extra for Polaroid photos. Balloon-o-gram Sell balloons to employees to give to their coworkers. Employees can purchase the balloon, include a brief note, and have it sent to their colleague. Employees get affirmation and your office gets decorated with colorful SECC balloons. Beach Blanket Bingo Decorate a conference room with beach items: beach balls, blow up rafts, fake palm trees, etc.
    [Show full text]
  • Job Characteristics and Job Retention of Young Workers with Disabilities
    Job Characteristics and Job Retention of Young Workers with Disabilities Carrie L. Shandra Department of Sociology State University of New York at Stony Brook [email protected] People with disabilities experience significantly lower levels of labor force participation than people without disabilities in the United States. Despite the focus on work promotion among this population, comparatively less is known about the factors promoting job retention among contemporary cohorts of young workers with disabilities. This study utilizes data from the National Longitudinal Survey of Youth 1997 (NLSY97) to examine the following: How do job characteristics differ by disability status? What job characteristics associate with the hazard of separation among young workers with disabilities? And, do the characteristics associated with the hazard of separation differ by disability status? I utilize Cox regression and longitudinal employment histories of workers from labor market entry through the early 30s. Results indicate that young workers with disabilities have a higher baseline hazard of separation than workers with disabilities—both overall and when considering voluntary and involuntary reasons for job exit. These results persist for involuntary separations (among those with serious disability) and voluntary health-related separations (among those with mild or serious disability) even after controlling for job characteristics. Employment benefits—including medical benefits, flexible scheduling, unpaid leave, and retirement—negatively associate with the hazard of separation for workers with disabilities. However, these effects persist for all workers, whereas job satisfaction, job sector, and work hours further condition the hazard of separation among workers with disabilities. Draft 08/20/18 I gratefully acknowledge support from the Department of Labor Scholars Program, 2017-2018, the staff at Avar Consulting, and seminar attendees at the Department of Labor.
    [Show full text]
  • The Affordable Care Act and the Labor Market: a First Look
    Federal Reserve Bank of New York Staff Reports The Affordable Care Act and the Labor Market: A First Look Maxim Pinkovskiy Staff Report No. 746 October 2015 This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit comments. The views expressed in this paper are those of the author and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author. The Affordable Care Act and the Labor Market: A First Look Maxim Pinkovskiy Federal Reserve Bank of New York Staff Reports, no. 746 October 2015 JEL classification: I13, I18 Abstract I consider changes in labor markets across U.S. states and counties around the enactment of the Affordable Care Act in 2010 and its implementation in 2014. I find that counties with large fractions of uninsured (and therefore a large exposure to the ACA) before the enactment or the implementation of the ACA experienced more rapid employment and salary growth than did counties with smaller fractions of people uninsured, both after the implementation of the ACA and after its enactment. I also find that the growth of the fraction of employees in states with larger uninsurance rates was not substantially higher than it was in states with smaller uninsurance rates. These findings are not accounted for by differential rates of recovery from the Great Recession in high- and low-uninsurance areas. Key words: labor economics, health economics _________________ Pinkovskiy: Federal Reserve Bank of New York (e-mail: [email protected]).
    [Show full text]
  • Fundraising Ideas
    FUNdraising Ideas SPECIAL EVENT IDEAS Beach Blanket Bingo Decorate a conference room with beach items: beach Director/Manager Auction balls, blow up rafts, fake palm trees, etc. Establish Get your executive staff to donate one hour to your a dress code, no office attire allowed. Serve hot dogs, campaign. Auction off each executive to the highest fruit, sandwiches and drinks. Award best outfit, bidding employee with proceeds to benefit the B&GC. play bingo! The executive then must take over the employee's job for the appointed hour. Company Comedy Have employees bring in their favorite jokes. Lunch Box Auction Combine all the jokes into one volume. Sell the books Employees supply lunches to be auctioned. at a comedy-themed lunch hour. Encourage management participation. Display lunches. Give prizes for the most creative, nutritional, Don't Know Much About History elegant, and humorous lunch. Employees come to work dressed in clothing from their favorite eras. Employees decorate CEO Lunch offices/cubicles according to the era selected. Have your CEO and other management serve and bus tables at a luncheon. Sell tickets! Eat This! Purchase whipped pies and balloons at your local Casual Days store. Fill balloons with water. For a fee, employees Sell casual day badges allowing employees to dress throw pies and balloons at upper management. casually on certain days. Employees purchase Arrange function to be held during peak business badges for $5 each. Designate certain casual days as hours. "crazy days" and encourage your employees to show their wild side, i.e., Stupid Hat Day, Outrageous Funniest Home Videos Socks Day, Sports Team Day, or Dress Up Day.
    [Show full text]
  • 13 Musts for Breaking Bad News to Your Employees
    13 musts for breaking bad news to your employees Have to tell the troops about layoffs, an upper-level scandal, an imminent hostile takeover or divestment? Follow these essentials. SPONSORED BY: Lawrence Ragan Communications, Inc. 13 musts for breaking bad news to your employees Nobody likes to be the bearer of bad tidings, whether it’s news of layoffs, a product recall, a reduction in benefits, financial woes or an executive resigning under a cloud. Yet to succeed as an executive—or a communicator—it’s essential that you level with your employees. Transparency is an increasingly important goal for organizations. Internal communications expert Sean Williams says a related concept may be just as essential: authenticity. Publicly traded companies can’t always open their books to the world, but they can make a commit- ment to be straight—authentic and honest—in their communications, he says. This means holding to this promise: “If we’re asked directly about something, we’re going to answer directly,” Williams says. Here are more tips for successfully breaking bad news: 1. Prepare. Good messaging doesn’t emerge spontaneously, especially in times of trouble. At a previous compa- ny, Todd Johnson, now president and board chairman of Kollective, was part of a team that spent six hours preparing the chief executive for a 15-minute presentation onstage to employees. The leader didn’t do well at first. “He was going to sound like he was spinning,” Johnson says. “He wasn’t going to answer any ques- tions about layoffs. People were going to think there was some grand scheme behind all this, and none of it was true.” By working through it, the CEO boosted trust in his message.
    [Show full text]
  • I Am Grateful for Many Helpful Discussions with Janet Currie
    NBER WORKING PAPER SERIES EMPLOYMENT-BASED HEALTh INSURANCE AND JOB MOBILITY: IS THERE EVIDENCE OF JOB-LOCK? Brigitte C. Madrian Working Paper No. 4476 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 September 1993 I am grateful for many helpful discussions with Janet Currie, David Cutler, Peter Diamond, Henry Farber, Jerry Hausman and James Poterba and acknowledge financial support from the National Science Foundation, the Lynde and Harry Bradley Foundation, and the National Institute of Aging. This paper is part of NBER's research program in Public Economics. Any opinions expressed are those of the author and not those of the National Bureau of Economic Research. NBER Working Paper #4476 September 1993 EMPLOYMENT-BASED HEALTH INSURANCE AND JOB MOBILITY: IS THERE EVIDENCE OF JOB-LOCK? ABSTRACT This paper assesses the impact of employer-provided health insurance on job mobility by exploring the extent to which workers are "locked' into their jobs because preexisting conditions exclusions make it expensive for individuals with medical problems to relinquish their current health insurance. I estimate the degree of job-lock by comparing the difference in the turnover rates of those with high and low medical expenses for those with and without employer-provided health insurance. Using data from the 1987 National Medical Expenditure Survey, I estimate that job-lock reduces the voluntary turnover rate of those with employer-provided health insurance by 25 percent, from 16 percent to 12 percent per year. Brigitte C. Madrian Department of Economics Littauer Center Harvard University Cambridge, MA 02138 and NBER The majority of privately insured Americans obtain their health insurance through their own or a family member's employment.
    [Show full text]
  • Nber Working Paper Series
    NBER WORKING PAPER SERIES LIMITED INSURANCE PORTABILITY AND JOB MOBILITY: THE EFFEC1S OF PUBLIC POLICY ON JOB-LOCK JonathanGruber Brigitte C. Madrian WorkingPaper No. 4479 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 September 1993 We are grateful to John Abowd, Maria Hanratty, Olivia Mitchell, and participants at the Cornell Seminar on Health Insurance and the Labor Market for helpful comments, and to Aaron Yelowitz for his help in creating the SIPP exuacts. This paper is part of NBER's research programs in Health Care, Labor Studies, and Public Economics. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research. NBER Working Paper #4479 September 1993 LIMITED INSURANCE PORTABILITY AND JOB MOBILITY: ThE EFFECFS OF PUBLIC POLICY ON JOB-LOCK ABSTRACT The link between health insurance and the workplace in the U.S. has led to concern over the possibility of insurance-induced reductions in job mobility or 'job-lock". Designing health insurance reforms which retain employer-based insurance coverage but mitigate the extent of job- lock requires an understanding of the policy dimensions to which job-lock is most receptive. We study a policy of limited insurance portability which has been adopted by a number of states and the federal government over the last 20 years. These "continuation of coverage' mandates grant individuals the right to continue purchasing health insurance through their former employers for some period of time after leaving their jobs. We find that the passage of these mandates caused a significant increase in the job mobility of prime age male workers.
    [Show full text]