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
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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
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
The relative nature of the work test is “essentially an economic and functional one, and the determinative Criteria [sic] not the inconclusive details of the arrangement between the parties, but rather the extent of the economic dependence of the worker upon the business he serves and the relationship of the nature of his work to the operation of that business.” Marcus v. E. Agr. Ass'n, Inc., 58 N.J. Super. 584, 603 (App. Div. 1959), rev'd. Marcus v. E. Agric. Ass'n, Inc., 32 N.J. 460 (1960). There are two fundamental questions that have to be explored: (1) is the work an integral part of the regular business, and (2) is the employee economically dependent on the
The most important factor in determining an independent contractor versus employee status of a worker is the amount of control the employer has over the workers in performing a particular task. McCubbin by & through McCubbin v. Walker, 256 Kan. 276, 281, 866 P.2d 790 (1994). There must be a contract between the person wanting work done and the person doing the work in order to establish either an employer-employee relationship or an independent contractor relationship. Id at 282, 866 P.2d at 795.
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?
California law defines independent contractor as any person who provides services for a specified recompense, under the control of the principal, only for the result of his work. Acol, a guitar instructor at Marsha’s Guitar Shop, controls her own working schedule, books her own clients, and sets the prices for the services she provides. Is Acol an independent contractor?
· 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
– Identify and analyse the reasons why it is important to determine an individual’s employment status
1.3 Identify and analyse the reasons why it is important to determine an individual’s employment status.
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.
The differentiation between an independent contractor and an employee is a critical one for any employer to make. Furthermore, this choice can have significant implications for the business regarding additional fees and taxes. In this situation, Karen was initially hired as a temporary employee. Moreover, Karen has functioned as an independent contractor for 5 years. If one were to look at her employment status, they would see that Karen has additional clients outside of the local utility as well as the fact that she has not received benefits or proper tax documentation for this period time. For these reasons, Karen should
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
Critically evaluate the utility of the psychological contract for understanding the contemporary employment relationship. (2500 Words)
1. those who are engaged to perform necessary or desirable activities for trade of employer, except when employment is fixed for specific term or project