Name: Date: 11/6/2013
Scenario Summary:
Your Role/Assignment:
Your role is to decide if Karen is an independent contractor or an employee and discuss some of the preventative and ethical situations that are occurring in this case.
Questions:
1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision?
The question is complicated and different courts, states and agencies have differing views on the matter. I choose to say that Karen is an employee of the local Utility. The intent behind an independent contractor is to perform and specific project and then move on to the next project. Here the one project turned into many, it was Karen’s full time employment, she worked at the facility and she even had her title changed to be more in line with other employees. The quote from the text about, looking, walking, swimming and quacking like a duck, then it must be a duck applies here. From anyone else’s point of view Karen would have been perceived as an employee.
2. What factors do you feel help contribute to Karen being an employee?
Using the analysis from the text book from Christina Morfeld, some of the specific answers point to Karen’s status is that of an employee. Here are some of the determining questions:
8. Does the individual perform regular and continuous services for you?
The answer is yes, Karen continued after the initial project.
9. Does the individual provide services on a substantially full-time basis for your company?
The answer is yes, Karen’s full time work is with Utility company over the past five years.
10. Is your company the sole or major source of income for the individual?
Yes, Karen is paid $10,000 a month and it is the majority of her income
11. Is the work performed on your premises?
Yes, Karen works at the Utility
13. Do you pay the individual by the hour, week, or month?
She is paid by the month, most independent