Regulatory Environment at Kudler Fine Foods

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Regulatory Environment at Kudler Fine Foods

Kudler Fine Foods is going through a shrinking and expanding process in the few months and will be temporarily closing some departments while a new catering service is being created. While some businesses may have personnel issues in dramatic expansions of business, Kudler Fine Foods has a path to follow that will allow all employees to stay employed and learn new aspects of the grocery business. With the expansion of Kudler Fine Foods, new resources will be needed. This paper illuminates the way to this goal and be in compliance with existing regulations.

Kudler Fine Foods Obligations to the Employees

The decision to use local growers of organic produce and start a catering service will result in the shutting down of some departments during a three-month refurbishing process. Because Kudler Fine Foods operates in the state of California, where "employment is at will', this means that the employer can fire the employee for no reason or any reason," (Greenburg, 2007). The only two exceptions are discrimination and breach of contract. Kudler Fine Foods' Employee Handbook states, "The only policy we will never change or cancel is our employment-at-will policy." The employment-at-will policy allows the employee or KFF to terminate employment at any time for any reason," (Apollo, 2007). Kudler Fine Foods has no obligations under "breach of contract", because no contracted employees exist in the company, so long as no terminations during the refurbishing are based on discrimination.

The question of obligations to affected employees can be answered by looking at laws governing unemployment insurance. Since 1935, "federal law has authorized joint federal-state efforts [to protect] employees after their employment end," (Mallor, 2003, p. 1169). The Kudler Fine Foods Employee Handbook expressly states that all employees are eligible for unemployment insurance (Apollo, 2007). Because of this, the affected employees may be entitled to unemployment insurance payments if that meet certain requirements set forth by the state, including being unemployed through no fault of their own, being physically able to work and actively seeking work, (State of California, 2007).

Kudler Fine Foods will need to keep in mind that the positions that are being laid off will need to be filled in three months, the company will have to be careful how they layoff the employees, so that the employees do not become disgruntled and look for other jobs, which would increase Kudler Fine Foods' need to train new employees.

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