Review the 10 cases presented for consideration in Question 2 (letters a – j) of the Chapter-End Questions in Chapter 2 (pp. 80-81 of the eBook).
For your first post, prepare a detailed response for one of the ten scenarios, explaining your conclusion regarding whether the scenario constitutes a violation of public policy or a breach of a covenant of good faith and fair dealing. Support your conclusion with legal analysis and reasoning. Explain whether any of the scenarios give rise to potential employer liability and what steps should have been taken to avoid the exposure. Then, comment and expand on the posts of the other class members.
2. Karen is a human resources consultant at a local utility. Originally, the work requested was project based. Karen was asked to develop training materials for an upcoming session on diversity. Cynthia, the human resources manager, was very happy with the work that Karen did and asked her to work on some additional projects. Before everyone knew it, Karen had been working at the utility for five years.
Karen has been paid a monthly base salary of $10,000 per month. Karen has received a 1099 for her wages over the past five years, but has not received a W-2. Karen was not offered any benefits, but when she was hired, she did not need them, as she was happily married. However, Karen’s husband recently passed away and she asked Cynthia about receiving benefits. Cynthia has denied Karen’s request. Karen’s title, when she started, was Human Resources Temporary, but her new title evolved into Human Resources Consultant to be more consistent with others in the department who are doing work similar to hers. Karen does have a contract with the utility.
Karen has had other limited clients over the years. She had one client for an approximately 40-hour project two years ago, and she currently has another client that keeps her on a retainer basis.
Since she was denied benefits, Karen has contacted the IRS to ask them to determine her status.
Cynthia is the human resources manager at ABC Utility, as well as Karen’s supervisor.
Karen is an individual who has been working at ABC Utility. You will look at her employment relationship to determine if she is an employee or an independent contractor. You decide!
Your role is to decide if Karen is an independent contractor or an employee.
After reading this, please return to the Week 1 Discussion area, and answer the first two questions there about Karen. Your instructor will return with further questions throughout the week.
Over the past 20 years, employers began relying on part-time, temporary, and contract employees to reduce costs, increase flexibility and reduce benefit costs. Employees feel it is discriminatory for employers to exploit the labor market by using part-time workers and temps to keep labor costs down for one segment of the work while paying full value for another segment. In the past few years, numerous laws and tax changes have been proposed to try to regulate this area of the industry better.
Please review the “YouDecide” content which is located under the Week 1. We will begin our discussion by debating whether Karen is an independent contractor, or a full-time employee. Your first post should answer these two questions:
Your instructor will return with additional questions and move you through the law on independent contractors (IC) vs. employees throughout the week. Be ready to engage!