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Employee Contract Case Summary

Decent Essays

The main issue in this case I whether or not Far Left misclassified Jimmy C as an independent contractor, and in an extrapolation of that, is Jimmy entitled to workers compensation claim benefits, minimum wage, and overtime pay for his 60+ hours. According to the U.S. Department of Labor “the misclassification of employees as independent contractors presents one of the most serious problems facing affected workers, employers and the entire economy.” (The Misclassification of Employees as Independent Contractors). Those misclassified employees often unknowingly forfeit access to vital health insurance plans, retirement savings accounts and basic entitlements, such as the minimum wage, overtime compensation, family and medical leave, unemployment …show more content…

To receive points for this part of the question, you must reference the case in which the rule/test was applied using a complete case citation. ◦Third, identify the court’s Application or Analysis of the salient/most important facts to the rule/test.

Distinguishing between employees and independent contractors is no task to be taken lightly, and because both perform duties in exchange for pay it can sometimes be difficult to draw that line. The economic realities test is one approach that has been established by the court system. The basic outline of the test is the consideration of the following criteria:
• Is the work being performed by the individual an essential part of the employer’s business: if integral, then the situation is suggestive of an employee/employer relationship.
• Does the individual’s managerial skill affect the individual’s prospect for profit or loss: if an individual practices decision-making skills that affects his profit and loss, then the situation suggestive of an independent …show more content…

An independent contractor would supply many of his own necessary tools and supplies.
• What is the nature and degree of the employer’s control: an independent contractor must control meaningful aspects of the work performed such that it is possible to view the worker as a person conducting her own business.
• Does the work performed require special skill and initiative and/or specialty licensing: an individual’s business aptitudes, judgment, motivation and initiative, not technical skills, will aid in determining whether the worker is economically independent. If the individual can easily be replaced than it is probably an employee/employer relationship.
• Is the business relationship defined as permanent or indefinite: permanence or indefiniteness are indicative of an employee as compared to an independent contractor, who typically works one project for an employer and does not necessarily work continuously or repeatedly for an employer unless his contract is

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