Scenario One Cost Club
Memorandum
To: Prominent Pat, Human Resources Manager, Atlanta Region
From: John Q Student, Assistant Human Resources Manager, Atlanta Region
Date: 8/17/2013
Re: Five Human Resources Concerns Region-wide
Hello Ms. Pat, please accept this memo in response to your email regarding some recent human resources issues that have occurred within the Atlanta Region Cost Club stores.
Confidential
Message I: Discharges at the Anderson Cost Club Store
The store in Anderson, being located in a right-to-work state, does not have to provide a rationale for the firing of the two employees. Stating that the firing was a downsizing, the General Manager needs to make sure to have documentation supporting the downsizing. The downsizing is legally acceptable in that it does not violate the WARN Act, a mass layoff, from the information presented.
However, there are issues that should be addressed by the General Manager that could prevent the possibility of costly, public litigation due to a charge of wrongful discharge or a breach of the covenant of good faith and fair dealing. Since all information presented indicates that the employees were of good merit; the employees should have received an explanation of the rationale behind the downsizing decision, especially if there were other employees of similar tenure and performance who could have been eligible for downsizing. The employees need to be made fully aware of their rights.
Message II: Regional CEO Looks to Reduce Employee Costs
The Cost Club employee acts as a substitute appointed by Cost Club. The employee is given power to do certain things on behalf of Cost Club. Cost club will control the methods, details, work location, work hours, and other factors related to the employment of the agent/employee.
Independent contractors are generally those who contract with a principal, in this case Cost Club, to perform a task according to his/her own methods, and who is not under the principal’s control, Cost Club,
To: Prominent Pat, Human Resources Manager, Atlanta Region
From: John Q Student, Assistant Human Resources Manager, Atlanta Region
Date: 8/17/2013
Re: Five Human Resources Concerns Region-wide
Hello Ms. Pat, please accept this memo in response to your email regarding some recent human resources issues that have occurred within the Atlanta Region Cost Club stores.
Confidential
Message I: Discharges at the Anderson Cost Club Store
The store in Anderson, being located in a right-to-work state, does not have to provide a rationale for the firing of the two employees. Stating that the firing was a downsizing, the General Manager needs to make sure to have documentation supporting the downsizing. The downsizing is legally acceptable in that it does not violate the WARN Act, a mass layoff, from the information presented.
However, there are issues that should be addressed by the General Manager that could prevent the possibility of costly, public litigation due to a charge of wrongful discharge or a breach of the covenant of good faith and fair dealing. Since all information presented indicates that the employees were of good merit; the employees should have received an explanation of the rationale behind the downsizing decision, especially if there were other employees of similar tenure and performance who could have been eligible for downsizing. The employees need to be made fully aware of their rights.
Message II: Regional CEO Looks to Reduce Employee Costs
The Cost Club employee acts as a substitute appointed by Cost Club. The employee is given power to do certain things on behalf of Cost Club. Cost club will control the methods, details, work location, work hours, and other factors related to the employment of the agent/employee.
Independent contractors are generally those who contract with a principal, in this case Cost Club, to perform a task according to his/her own methods, and who is not under the principal’s control, Cost Club,