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.

Questions:

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…...

Similar Documents

Independent Contractor or Employee?

...Nate Piche Employee or Independent Contractor? When choosing whether to classify a worker as an independent contractor or an employee the employer has many tax related and non-tax motivations to choose the former. The biggest motivations are the many taxes that the employer will not be responsible for withholding if they choose to classify a worker as an independent contractor. One of the largest responsibilities of an employer is the role it plays as tax collector for the government. If an employer is able to classify its worker as an independent contractor rather than an employee they would not have to worry about withholding federal income tax, FICA taxes, FUTA taxes, and state income taxes. Instead this burden would fall upon the independent contractor when tax season comes around. There are non-tax benefits for the business in choosing to classify a worker as an independent contractor as well. Employers do not have to worry about paying into workers’ compensation plans for independent contractors, they do not have to pay health or welfare benefits, pay into pension plans, or reimburse business expenses. With all of those pros to classifying a worker as an independent contractor you have to wonder why businesses choose not to. Along with those many benefits there are also a few disadvantages. Independent contractors, by definition, do not work set hours which means they are free to come and go as they please which could lead to schedule disruption. ......

Words: 1470 - Pages: 6

Independent Contractor Agreement

...INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (the “Agreement”) is entered into as of ___________________ (the “Effective Date”) by and between ____________________ (Independent Contractor), a INDIVIDUAL [individual/corporation/partnership/etc.] (the “Contractor”), and PORTERHOUSE FINE MEATS, a LLC [corporation/partnership/etc.] (the “Company,” and together with the Contractor, the “Parties”). RECITALS WHEREAS, the Company wishes to engage the Contractor as an independent contractor for the Company for the purpose of completing certain specified tasks on the terms and conditions set forth below; and WHEREAS, the Contractor wishes to provide the Services (as defined below) in accordance with the terms of this Agreement; and WHEREAS, each Party is duly authorized and capable of entering into this Agreement. NOW THEREFORE, in consideration of the above recitals and the mutual promises and benefits contained herein, the Parties hereby agree as follows: 1. RESPONSIBILITIES. a) Of the Contractor. The Contractor agrees to do each of the following: A. Perform the Services set forth in Exhibit A attached hereto and made a part hereof (collectively, the “Services”). B. Devote as much productive time, energy, and ability to the performance of its duties hereunder as may be necessary to provide the required Services in a timely and productive manner. C.......

Words: 3511 - Pages: 15

Independent

...Nobody But Myself An independent person is someone who supports him or herself and is forced to accomplish his or her own responsibilities unaided. A person who is dependent is better known for constantly relying on others for help. Always depending on others causes an individual to lack self-reliance and self-sufficiency. I can shamefully admit that, as a child, I was extremely dependent on everyone around me for everything I did. I was most dependent on my family, including my mom, dad, sister, and cousins. From age ten to twelve I became extremely needy that I started to develop severe laziness. I was so lazy that one day I had asked my cousin to make me a peanut butter and jelly sandwich, to which she replied no and demanded I make it myself. The only response my sluggish mind could utter was, “But I do not know how to make a peanut butter and jelly sandwich,” which was an absolute lie. It was as if I began to view my family as my servants. Rarely would I do anything for myself. All I had to say was “I want this” and it would become mine. I was given money, clothes, toys, and food whenever I wanted. I developed into an incompetent child. When I turned thirteen years old, my parents started to act stricter and enforced more rules. This was a turning point in my life because I finally understood that I could not be successful in life by relying on anyone else but myself. From that moment on, I focused all my energy on transforming myself into an independent individual.......

Words: 533 - Pages: 3

Contractors Agreement

...INDEPENDENT CONTRACTOR AGREEMENT Agreement made this ________day of ________, 19____ by and between ____________________a ___________________("Company") and _______________a ________("Independent contractor"). Independent contractor is an independent contractor willing to provide certain skills and abilities to the Company that the Company has need for. In consideration of the mutual terms, conditions and covenants hereinafter set forth, Company and Independent contractor agree as follows: 1. The Company hereby employs the independent contractor as an independent contractor, and the Independent contractor hereby accepts employment. 2. The term of this Agreement shall commence on ____________. After the first thirty (30) days of the term, either party may, without cause, terminate this Agreement by giving ____________ 30 days' written notice to the other. 3. Company shall pay to Independent contractor and Independent contractor shall accept from the Company as compensation for all services to be provided pursuant to this Agreement, the sum of $__ per class or $__ per training session. Independent Contractor is responsible for any and all taxes. Independent Contractor will also receive a $__ finder’s fee for each client brought to (Name of buisiness). Company shall reimburse Independent Contractor for insurance. Company shall not reimburse for any travel or related expenses. 4. Independent contractor shall provide on an "as needed" basis the following services: Aquatic and land...

Words: 523 - Pages: 3

Karen Pletz

...Karen Pletz, 64, was president and CEO of the Kansas City University of Medicine and Biosciences from 1995 until 2009. She had taken on many civic leadership roles and was honored as one of the area’s top businesswomen. She had a great reputation in her community up until late 2009 when questions began surfacing about how the school finances were being handled, which brought about her immediate termination. In March of 2010 the university filed a lawsuit and the federal indictment describes a scheme in which Pletz embezzled from KCUMB by wrongfully receiving more than $1.5 million in payments from the osteopathic medicine and life sciences school, according to fbi.gov. Unauthorized Pay She wrongfully took $1,409,500 from the University in unauthorized pay by causing minutes of nine executive committee meetings to be created when meetings did not even take place. The payments for the meetings were referred to as leadership stipends and leadership compensation. They were typically in the form of a $65,000 lump sum. When her secretary informed her that she had no signatures confirming the meeting, Pletz stated, “Well, you’re a smart girl, make sure you just fix it.” Anyone put in this situation would feel their job safety was being threatened. So the secretary did what many people would do and photocopied signatures to put on the meeting reports. Travel and Entertainment She also submitted fraudulent vouchers to receive reimbursements for travel and......

Words: 859 - Pages: 4

Karen

...Shewhart (Miller, L pg.4). Their work emphasized focus on customer satisfaction, integration and communication with suppliers as well as employee satisfaction (p. 4). The Total Quality Movement is defined as “an ongoing and constant effort by all the organization’s functions to find new ways to improve the quality 4 of 17 of the organization’s functions to find new ways to improve the quality of the organization’s goods and services” (Jones, G. p.337). The other pioneering influence on the high performance organization body of thought was Socio-technical design (Miller, Laurence p. 4). The 2 contributions of sociotechnical design were an emphasis on designing sociological and technical systems to complement one another so the organization could function optimally and the view of the organization as an open system (pg 4). Sociotechnical systems theory was also the first theory to suggest that changes in “role and tasks, or technical relationships” can “increase organizational effectiveness” (Jones, G. p.336). Theory and Models in Relation to Organizational Development The theory and models of the high performance Organizations borrow heavily from Organizational Development. The high performance organization is a benchmark or optimal state an organization should operate in. The fundamental theory behind high performance approaches are that of employee participation, empowerment, and a focus on the organization as a system and it affects on employees who in turn have a huge......

Words: 3991 - Pages: 16

Contempory Employment Relations: Employee-Contractor Case

...CONTEMPORY EMPLOYMENT RELATIONS EMPLOYEE-CONTRACTOR CASE Introduction: 148 There are a few different ways in which organisations can employ people. The two most common methods that businesses use are to employ people into the company as an employee or as a contractor. According to the IRS, under common-law rules, ‘anyone who performs services for an employer is an employee if the employer can control what will be done and how.’ On the other hand the IRS defines a contractor as ‘an individual is an independent contractor if the organization has the right to control or direct only the result of the work, not the means and methods of accomplishing the result.’ This case study will use the ‘multi factor test’ to explore and analyse the dilemmas identified in the case study. Precedent cases will be used to arrive at decision as to the employment relationship between Joseph Raphael (“the Plaintiff”) and Vincent Van Gallery (“the Defendant”). Body: 1100 Elements of a contract According to Lord Diplock in United Dominions Trust Ltd v Eagle Aircraft Services Ltd, “a bilateral contract is where each party undertakes to the other party to do or to refrain from doing something, and in the event of his failure to perform his undertaking; the law provides the other party with a remedy”. There are four main elements that create the backbone of a legally binding contract. The first requirement for a valid contract is an agreement, which consists of an 'offer' and an......

Words: 1628 - Pages: 7

Employee Contractor Case Study

...Queensland University of technology | Employee-Contractor Case Study | By Monil Mehta | | Word Count: 1450 | 8/21/2014 | n8911941 | 1.0 Introduction The main purpose of this report is to distinguish and provide evidence to the fact that Anne Parish, a former employee at Ace Accident Insurance in Cairns was treated unfair by her former employer. In employment relations all employees should be treated and remunerated fairly, irrespective of them being an independent contractor or an employee (Fair Work Act, 2009). In this report it shall be determined whether Anne Parish was an employee or an independent contractor to Ace Insurance Co. using the multi-factor test. Further it shall also be argued upon whether Anne was dealt fairly or not. 2.0 The Multi- Factor Test The Multi- Factor test is important because it determines the entitlements for a worker as an independent contractor or an employee. The test started to be used by the legislature and federal courts from 1990’s to determine and decide upon, if an individual or group of individuals is an employee or a contractor (Stewart, 2009). The multi-factor test takes into account certain criteria’s and facts to determine whether a person is an Employee or Independent contractor . This facts fall into 3 main category namely behavioral control, financial control and type of relationship (Megerdomian, n.d).......

Words: 1738 - Pages: 7

Independent Contractor Agreement

...Page 1 of 10 INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (“Agreement”), entered into by and between Edegree Advisor LLC, a Delaware State limited liability company (“Company”), and _______, an individual residing at _____ (“Contractor”), on this the __ day of ______ 20__ (“Effective Date”), sets forth the understanding between the parties with respect to the retention of Contractor to furnish certain services to Company as described herein. 1. Services. During the term of this Agreement, Contractor shall endeavor to provide the Services set forth on Exhibit A hereto, as well as such other and additional Services as the parties deem appropriate. 2. Term. This Agreement and Contractor's retention hereunder, shall commence as of the Effective Date and continue for a period of eighteen (18) months. Either party may terminate this Agreement with or without cause, by providing written notice to the other party (with email being a satisfactory form of written notice). 3. Fees. Company shall pay Contractor the fees set forth on Exhibit B hereto. 4. Independent Contractor. 4.1 Scope of Relationship. It is expressly understood and agreed that Contractor is not an employee of Company for any purpose whatsoever, but is an independent contractor. Under no circumstances shall Contractor be considered an employee, agent or representative of Company. This Agreement shall not establish, or be interpreted as establishing, any form of employment......

Words: 4205 - Pages: 17

Employee Contract

...Introduction The employee-employer relationship can be complex and understanding that relationship ensures success. Employers can employ full time, part time, temporary, or contractual employees. In addition benefits are given based on those positions. Employers also have exempt and non-exempt positions, depending upon the job duties involved. Organizations use these types of positions for cost-effective measures and reporting structure. Understanding these classifications and using them properly ensures the fair and equitable treatment of employees and allows employers to operate their business in the most cost-effective manner. Regular Employees versus Temporaries The organization choses to analyze is a local fitness club that is an at will organization. The types of employments types include full time and part time hourly employees, positions based on commission, and independent contractors. Regular full time employees are provided benefits such as paid time off, holidays, retirement plans, health benefits, flexible spending accounts, life insurance policies, employee assistance programs, and tuition reimbursement plans. Temporary employees are hired on a temporary basis to fill positions for which an employee may be on leave such as FMLA, disability, or maternity. In some cases, temporary positions may result in regular full time positions if the organization sees a need to keep the employee. Hiring a temporary employee saves the organization the costs that hiring......

Words: 302 - Pages: 2

Law-an Self Employed or Independent Contractor

...DON’T FORGET ILAC METHORD According to the Employment Rights Act (ERA) 1996 an employee is defined as an individual who has entered into or works under a contract of employment. The 1996 Act further defines an contract of employment as contract of service , whether express or implied, and whether oral or in writing.The key issue the court has to decide is whether Arabella is an employee or an independent contractor,and if she is an employee she will be protected under the ERA 1996. It is important to consider common law rulings in order to establish whether Arabella qualifies as an employee under the 1996 Act.Arabella was labelled as an independent contractor and self-employed for tax puporses,it should be noted that in Ferguson v Dawson the labels of the claimant being called self-employed did not affect the parties true relationship which was one of a master and servant. Instead the court will also consider other factors such as the fact that the defendant could tell the claimant what to do and where to do it,in this case Blaye Mortgage Brokers provides a vehicle for Arabella and requires her to visit customers in South of England.As a result the court might label Arabella as an employee under the ERA 1996 by considering the factors mentioned above and the labels (independent contractor and self-employed) might be considered a sham at the court’s discretion. The highlighted upper paragraphs illustrated how to address the law which called ‘ILAC’ please peer in mind that...

Words: 1212 - Pages: 5

Organizational Challenge: Independent Contractors

...The Organizational Challenge: Independent Contractors September 30, 2009 Table of Contents Introduction……………………………………………………………………. 3 Background……………………………………………………………………. .4 Analysis………………………………………………………………………….6 Conclusion……………………………………………………………………….8 References……………………………………………………………………….9 Introduction “Culture” has become a common way of thinking about and describing an organization’s internal world--a way of differentiating one organization’s “personality” from another (Trevino, P-256)). Employees are brought into the organization’s culture through a process called socialization. Through socialization, employees are taught the ropes. Socialization can take place through formal training or mentoring, or through more informal transmission of norms by peers and managers. When effectively socialized, employees behave in ways that are consistent with cultural expectations. Organizational culture is created and maintained through a multifaceted of formal and informal organizational systems. Formally, organizational structure, selection systems, orientation and training programs, rules and policies, and performance management processes all contribute to culture creation and management. Informally, the culture’s norms of daily behavior keep the culture alive and indicate to both insiders and outsiders whether the formal systems represent fact or façade. Culture defines us and reflects the corporate public image. Ethics is an integral part of that......

Words: 2273 - Pages: 10

Independent Contractor

...In order for John who is an employee in a private sector organization to file a discrimination complaint against his employer, there are various steps that must be taken in order to do so with the Equal Employment Opportunity Commission (EEOC), and the U.S. Court System. Equal Employment Opportunity Commission (EEOC) laws were designed that governs both the employee and employer when a complaint is filed. According to U.S Equal Employment Opportunity Commission (n.d), “EEOC files employment discrimination lawsuits in select cases. When deciding whether to file a lawsuit, EEOC will consider several factors, including the seriousness of the violation, the type of legal issues in the case, and the wider impact the lawsuit could have on EEOC efforts to combat workplace discrimination. Because of limited resources, EEOC cannot file a lawsuit in every case where discrimination has been found”. In this scenario, the first thing that John has to do in filing his complaint is to do so with the office of EEOC. After the complaint has been filed, the Equal Employment Opportunity Commission (EEOC) will then take over the case, which they will take the proper steps in an effort to avoid any legal actions. John’s case will be moved to a state level, and if it is necessary then to the Supreme Court. The employer in this matter will then be notified regarding the complaint that was filed against them. Also, in some cases if agreed upon by both parties, a mediator is assigned in the......

Words: 750 - Pages: 3

Rocky Gagnon General Contractor

...Rocky Gagnon, General Contractor Rocky Gagnon is a 50-year old journeyman carpenter, laborer, and craftsman. Over the past 30 years, Rocky has worked in almost every job and phase of the house building process. Rocky is getting older and his back is getting sore. He loves the construction business and feels that now is the time for him to start working more with his mind than his back. Rocky wants to become a general contractor. Some general contractors have their own facilities, equipment and employees. Others simply work out of their homes and subcontract all of the work required to complete a particular project. Rocky has an idea and a vision for something a little different. He wants to put together a team of tradespeople who will agree to work together toward the successful completion of about eight to fifteen homes per year. At the same time, each individual will be able to continue to operate as an independent contractor during off hours. One of the results of working for 30 years in the local building trades is a large and varied network of friends and acquaintances. Rocky has enjoyed many a drink with the local plumbing and heating contractors, roofers, insulation people, land surveyors, and others. Rocky wants to take advantage of those relationships. The general profile of local contractors, according to Rocky, is that of a highly skilled, very independent group of people with poor communication skills. The workmanship is generally very goodwhen it finally gets...

Words: 740 - Pages: 3

Karen Horney

... Karen Horney-Pioneer in Woman Psychology Latascha Purdie PSY 310 June 4, 2012 Professor Meadowlark Karen Horney-Pioneer in Woman Psychology Men dominated the world of psychology but in 1885 a woman was born that was going to challenge his or her theories. Karen Horney was considered a pioneer theorist in personality, psychoanalysis and “feminine psychology.” Her life and works contributed to the change in how female psychology was looked at and studied. From birth to death Karen Horney was born September 16, 1885 in Blankenese, Germany that is near Hamburg, to a family of seven. Her mother Clothilde Marie was the second wife of widower Berndt Danielsen, and he was in his 40s when Horney was born (Hitchcock, 2005). She had little interaction with him because he was always away at work and during the times he was home, his four older children required most of his attention. She was very close to her mother and younger brother, so to her that was her family. In those times girls went to school up until 8th grade and after that they were groomed to be wife’s and mothers. This was not what Horney wanted to do and her opportunity came because in 1894 the first Gymnasium (our equivalent of high school) for girls opened in Baden, Germany, and finally in 1900 they started to offer classes for girls in the Gymnasium in Hamburg (Hitchcock, 2005). Horney was determined to join because the plans she had laid out for herself was to one-day attend a university. Both of her......

Words: 1550 - Pages: 7