Employee Contract Case Summary

Typically, in these instances, an employer will have very little control over the actual work that is completed or the amount of money that is owed to the individual.

Elaine owns the Fabric & Yarn store. Goldie is a salesperson in the store. When Goldie makes a sale to Heather, the sale is binding on

New Jersey courts define an independent contractor as one who “contracts to do a piece of work according to his own methods, and without being subject to the control of his employer as to the means by which the result is to be accomplished, but only as to the result of the work.” Cappadonna v. Passaic Motors, 136 N.J.L. 299, 300, (Sup. Ct. 1947), aff'd, 137 N.J.L. 661 (1948). There are two tests used to determine whether an employee was an independent contractor: (1) the control test and (2) the relative nature of the work test.

An independent contractor is defined as someone who is contracted to perform a job. The person whom is performing the job will perform by their own means and on their own time, as long as it falls within the time

and John, as employee, that establishes the terms of our relationship. In this case, it is

1. Did Wayne have an employment contract, either oral or written, with EcoCare? Why or why not?

It is important to establish the nature of the employment relationship as this is key to determining the employment rights to which an individual is entitled. In employment law a persons employment status helps determine;

·         What constitutes self-employment income? What are the requirements for estimated tax payments by self-employed individuals? Individuals who work for themselves and make money to do so constitute as self-employment income. Independent contractors and sole proprietors are considered self-employed. They receive all payment without withholding any Social Security tax, Medicare tax, state tax, and etc. They do however have self-employment tax, which is taken out when the individual file Schedule C or C-EZ on their tax return. They would also need to file a Schedule SE. As of 2011, self-employment tax is 13.3% of the individual’s net earnings. Of

They are entitled to core employment rights and protection such as receiving national minimum wage and unlawful deductions from their wages.

As there are so many different employment status types, it is important to determine the status as “employers will be exposed to the majority of employment rights only if the 'working person' can prove they are an employee rather than self-employed.” (CIPD, www.cipd.co.uk, Why is employee status so significant and what legislation covers it?, 24th Sept 2014.

There are many employment laws out there but ill discuss about three of them and what are the consequences if the company did not comply. The employment laws I will discuss are the Title VII of the Civil Rights Act 1964, Americans with Disabilities Act 1990, and the Uniformed Services Employment and Reemployment Rights Act. My next topic would be how an organization might structure their policies, practices and culture to ensure compliance.

An employment relationship describes the dynamic, interlocking economic, legal, social and psychological relations that exist between individuals and their work organizations. Palgrave Macmillan (2013), Glossary [online] Available at: < http://www.palgrave.com/business/brattonandgold/glossary/glossary.htm> [Accessed 17th September 2013]. Factors that impact on this relationship both have a detrimental effect to the running of a business. I will focus on two internal and two external. These being:

Furthermore, if no employer-employee relationship exists (regardless of what the relationship is called), you are an independent contractor and Karen’s earnings are generally subject to Medicare and Social Security Taxes for Self-Employed (IRS, 2011). In any event, this is a very interesting question for all involved. Despite the fact that Karen was hired as a consultant acting independently of the utility, she has been working within a relationship with the employer for a long period of time.

The importance of mutuality of obligation was demonstrated in O’Kelly where it was held that even though the relationship had many of the characteristics of a contract of employment, the workers were self-employed because mutuality of obligation was missing. The test was applied in a strict sense in this case; this is ‘highly disadvantageous’ for workers with irregular patterns; as demonstrated in Dacas and Bunce. However, in Dacas it was suggested that an implied contract could exist between the end user and complainant because mutuality could be created if the individual had

At the two furthest ends of the spectrum MacNeil (1985) identifies the two types of contract that underpin the employment relationship, transactional and relational. A transactional contract is a means to an end view, it denotes an attitude of ‘money comes first’, working in order to get paid and receive other work benefits. They aren’t concerned with being a ‘good organisational citizen’ or going the extra mile to stand out. Their only concerns are being paid and receiving their holidays. It is a contract based on fairly specifiable obligations.