Karen Is an Independent Contractor or an Employee

In: Business and Management

Submitted By eserrano71
Words 660
Pages 3
Scenario Summary: Week 1

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.


1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision?
I believe that Karen is an independent contractor. She was never hired by ABC Utility as a permanent employee. Karen’s tittle was change twice; she had a tittle of a temporary employee and Human Resources Consultant. My rationale for my decision is based on the fact that Karen has been working for ABC Utility for the past five year as an independent contractor and has never received any benefits and was paid as a 1099. Karen was never in need for any kind of benefits prior to her husband's death. After Karen’s husband death, she finds herself in need to have benefits.

2. What factors do you feel help contribute to Karen being an employee?
The factors that help are that she has been working fulltime for five years with the company and has developed a great rapport with fellow employees and other employees with hire positions such as managers. The Human Resource manager removed the word temporary out of her job title given her a permanent job title “Human Resources Consultant”. Having a solid working relationship with the human resource manager may also be leading others to view Karen as a permanent employee of ABC Utility. Having a contractor working on a daily basis for a long period of time may also be confusing for regular employees.

3. What factors favor her being a contractor?
One of the factors that favor Karen of being a contractor is that she also works for other clients that keep her on a retainer along with those who she's worked with throughout the years as an independent…...

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