Employment Law Essay

635 Words3 Pages
Scenario Summary: 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? In my opinion, Karen is an independent contractor due to the fact that she has not been hired by ABC Utility as a permanent employee and was contracted by the company as a human resource consultant. Karen initially was hired as a temporary employee. She has worked for ABC Utility for a period of 5 years. Having worked for the company for this amount of time, Karen does not receive benefits or have proper tax documentation for the period of time that she has been with the company. In addition, she also has clients for whom she performs work for. For these reasons, Karen should be considered an independent contractor. 2. What factors do you feel help contribute to Karen being an employee? One of the factors that I think contribute to others seeing Karen as an employee of ABC Utility is the time that she has been with the company. She has consistently worked for them for a period of 5 years which may lead employees to believe that she permanently works for the company. Also, Karen gets paid on a base salary which may also contribute towards portraying her as a permanent employee of ABC Utility. In addition, she has also developed rapport with other employees which allows them to view her as a member of the company. 3. What factors favor her being a contractor? Karen is ultimately considered an independent contractor when the employer does not have control of the services that she performs. However, the employer may have the legal right to control the details on how she performs specific tasks. Even though

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