Employment at Will – Garp Courier Serivce (GARP)

Garp Courier Service Case Study

Garp Courier Service (GARP) is a successful new business in the Washington DC area. The courier business is a very competitive industry. The key to GARP’s success is their unprecedented “money back guarantee” that all deliveries are completed within 30 minutes of receiving the call. GARP is growing fast and plans to establish service in other cities, starting with Baltimore.

Each of GARP 20 employees was hired with a handshake. On their first day employees are given a distinctive blue and red spandex body suit and a detailed employee handbook covering every aspect of the business from dress code and demeanor, to hours of service, pay, profit sharing and discipline. “This manual is the GARP bible. Lose it, or tell anyone our company policies and methods and you will be both fired and sued,” warned Tony Armstrong, the owner and manager. Regarding terminations the manual said all employees are conditional employees for one year. After successfully completing one year they would be considered “permanent” employees. Permanent employees are paid $40,000 per year with health benefits and are eligible for profit sharing. It also means they could be fired only for “cause” – a phrase never fully explained. The manual also says in tiny, 8-point type, on the next to last page, and after the signature page, that the manual is for “employee information purposes only and is not an employment contract.”
Homer Jones was GARP’s most successful courier. He was the first employee hired 3 years ago. He knew he was a fortunate recipient of Tony’s business system. He had the best list of clients and he worked very hard. He had to. Homer had a family to support including a little boy with heart problems. Homer realized, unlike other courier services, GARP couriers could ride and park their bikes anywhere – streets, sidewalks, even inside buildings. All doormen cooperated with GARP couriers; in contrast to the hostility they showed other couriers. Homer showed his appreciation; each Christmas he liberally handed out turkeys to friendly doormen, police officers and other “associates” who helped him.
GARP couriers have no trouble with the police. They did not obey traffic or street signs if they slow them down. If they get a ticket, unlike other couriers who pay the fine themselves, they just give the ticket to Tony. Homer tore through the city making twice as many deliveries as other couriers. Last year he earned a six-figure salary through salary, tips, bonus and profit sharing.

Due to his savvy, drive and experience Tony wanted Homer as his manager when decided to expand the business to Baltimore. Naturally, Homer was reluctant to give up his current job to start in a new city. But Tony Armstrong was uniquely persuasive. He said, “I got things set up. Go to Baltimore for a year and see how it goes. You can always get your job back here.” It was “an offer he could not refuse”. Homer relented and said goodbye to his comfortable job and life. His wife quit her job and the kids were removed from school and relocated in Baltimore where Homer bought a new house. As manager, Homer was guaranteed an annual salary, plus commissions on all deliveries and a higher percentage of company annual profits. The company also promised to hire 12 couriers within 3 months and have 20 hired within one year. The marketing budget called for huge increases in monthly increments through the first year.

• What legal theories will you pursue?
• What facts/evidence support each theory?

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