Employee Contract Case Study
To determine whether an individual is an employee or independent contractor under the common law, the relationship of the worker and the business must be examined. All evidence of control and independence must be considered. In an employee-independent contractor determination, all information that provides evidence of the degree of control and degree of independence must be considered.
Independent Contractor or EmployeeUnder federal and state laws, an independent contractor must be just that, independent. He or she must provide a product or service without punching a time clock or being told how to do the job. Independent contractors are described as persons engaged in occupations who contract to perform work according to their own methods, …show more content…
With respect to Mary 's services, are they regularly available to the general public? They should be, and if Mary does not attempt to make the availability of his/her services known to the general public, her relationship with Little Lamb could be viewed as an employer-employee relationship. The primary issue here is who is running the ship. Does Little Lamb have the right to hire or fire, determine the wage or salary to be paid, and decide on the time, place, and manner in which the work is to be done? If so, then the employer-employee relationship exists. Also, even if Little Lamb does not directly control Mary 's activities, but has the right to do so, the notion of control still exists. Under the common-law (20) criteria test, an employer-employee relationship is present between Mary and Little Lamb …show more content…
Where an employment contract exists for a fixed period of time (for example, three years) and is silent concerning grounds for terminating the contract, many state courts have ruled that employers have an implied obligation to discharge only for just cause. Similarly, unionized employees are governed by the terms and conditions of a collective bargaining agreement-they are not at-will employees.
Statutory considerations: Dismissals are illegal when based on age, sex, national origin, religion, union membership or any other factor protected by law. Potential problems arise any time you fire someone in a protected class.
Public policy exceptions: You cannot terminate an employee for such activities as filing a workers ' compensation claim, whistle blowing, engaging in group activities that protest unsafe work conditions or refusing to commit an unlawful act on the employer 's behalf.
Implied contract exceptions: You may be bound by promises published in your employee handbook or oral promises made at the hiring interview requiring "just cause" to
Independent Contractor or EmployeeUnder federal and state laws, an independent contractor must be just that, independent. He or she must provide a product or service without punching a time clock or being told how to do the job. Independent contractors are described as persons engaged in occupations who contract to perform work according to their own methods, …show more content…
With respect to Mary 's services, are they regularly available to the general public? They should be, and if Mary does not attempt to make the availability of his/her services known to the general public, her relationship with Little Lamb could be viewed as an employer-employee relationship. The primary issue here is who is running the ship. Does Little Lamb have the right to hire or fire, determine the wage or salary to be paid, and decide on the time, place, and manner in which the work is to be done? If so, then the employer-employee relationship exists. Also, even if Little Lamb does not directly control Mary 's activities, but has the right to do so, the notion of control still exists. Under the common-law (20) criteria test, an employer-employee relationship is present between Mary and Little Lamb …show more content…
Where an employment contract exists for a fixed period of time (for example, three years) and is silent concerning grounds for terminating the contract, many state courts have ruled that employers have an implied obligation to discharge only for just cause. Similarly, unionized employees are governed by the terms and conditions of a collective bargaining agreement-they are not at-will employees.
Statutory considerations: Dismissals are illegal when based on age, sex, national origin, religion, union membership or any other factor protected by law. Potential problems arise any time you fire someone in a protected class.
Public policy exceptions: You cannot terminate an employee for such activities as filing a workers ' compensation claim, whistle blowing, engaging in group activities that protest unsafe work conditions or refusing to commit an unlawful act on the employer 's behalf.
Implied contract exceptions: You may be bound by promises published in your employee handbook or oral promises made at the hiring interview requiring "just cause" to