Case Study: Cost Club Memo

921 Words4 Pages
Scenario 1: Cost Club Memo Lynetta Stonewall HRM546 December 22, 2014 Denise Brown Scenario 1: Cost Club Memo MEMORANDUM TO: Pat Brown FROM: Lynetta Stonewall DATE: December 22, 2014 SUBJECT: HR Concerns – Dealing with the Problems This memo is to address the five email messages concerning various human resources related problems included in the emails. Each question will be answered and will include references to the legal principles or statutes as it related to the question. Message 1: Discharges at the Anderson Cost Club store In response to the general manager (GM) firing two employees without providing a reason and the possibility of a wrongful discharge lawsuit, the state of Georgia is an at-will state. Under…show more content…
The contingent or temporary worker is an employee of a staffing company and can be part-time, full time, or seasonal (Bennett-Alexander & Hartman, 2007). It is also possible when working with a staffing company; Cost Club could put stipulations on the time and hours worked. It is important to make sure independent contractors and contingent workers have the proper classification to prevent an increase in cost and to minimize cost that is associated with being an employee of Cost Club. It can be more cost effective have independent contractors and contingent workers when it comes to taxes, civil liability, overtime, and minimum wage as a requirement established by the Fair Labor Standards Act (Duval Business Law, n.d.). Message 3: Safety Managers concern about injury and damages In the case of the employee slapping a customer, Cost Club could be held vicariously liable for the actions of the employee because the altercation happened during the course of employment. Vicarious liability is often extends from the employee to the employer if the employee is acting within the scope of employment and in this case the employee was on the clock and performing job duties (Bennett-Alexander & Hartman,…show more content…
It is best to provide explanation to employees regardless of the situation. The information provided above regarding the possible situations provided in each email gives a starting point for Cost Club to further research what would be the best route to take to ensure the company is protected. References Bennett-Alexander, D., & Hartman, L. (2007). Employment law for business (5th). New York, NY: McGraw-Hill Irwin. Duval Business Law. (n.d.). Know the difference between independent contractors and employees. Retrieved from http://www.duvalbusinesslaw.com/Articles/Know-the-Difference-Between-Independent-Contractors-and-Employees.shtml Secretary of State, Georgia. (n.d.). What Georgia employers need to know. Retrieved from http://sos.ga.gov/index.php/corporations/what_georgia_employers_need_to_know The U.S. Equal Employment Opportunity Commission. (2010, September). Employment Test and Selection Procedures. Retrieved from
Open Document