Employee vs. Contractor: Liability, Duties, and Termination Rights

1. CHAPTER 27 Test Review

2. EMPLOYEE VS. CONTRACTOR • Employee agrees to be “Supervised” for pay • As the employer, “YOU” take on the liability for injuries, NOT the worker • Employer and employee owe duties and obligations to each other • Independent contractor is NOT supervised • Takes on the liability of injuries to themselves, property or workplace • Only similarity to an employee is they are paid Supervised with pay Pay without supervision

3. Implied vs. Express agreements • Implied is an “At Will” agreement (Contract) • At will means you can leave a job at any time or be let go at any time without reason • No time limit exists for length of employment • Express agreements are employment contracts involving a time period • Both sides must agree to terms and abide by these terms • “Reason” must be given to fire an employee At Will Time based

4. WORK AGREEMENTS • All are contract based • All have terms that are agreed to and some that they must follow by law • Laws that oversee employment contracts can be both federal and state level laws • All involve pay with supervision

5. EMPLOYEE DUTIES • Obedience • Reasonable Skill • Loyalty and Honesty • Reasonable Performance

6. OBEDIENCE • Employee must obey “Reasonable” orders • Does not matter if the employee agrees to this or not

7. REASONABLE SKILL • If an employee accepts a job, they must be able to complete the tasks or have the skills they “Claim” they have and can do • If they cannot complete the job, they can be fired

8. LOYALTY AND HONESTY • Employee must look out for an employers best interest • Not bad mouth, sell company secrets or “Help” the competition

9. REASONABLE PERFORMANCE • Employees must complete duties on time, as they were assigned them and they must complete them correctly • Employees can be fired if they fail to do this

10. EMPLOYER DUTIES • Reasonable treatment of employees • Safe working conditions for employees • Follow the fair labor standards/laws • Payroll deductions • Duties to minors

11. REASONABLE TREATMENT • Orders given to employees must be “Reasonable” • Reasonable means they are able to complete the task

12. SAFE WORKING CONDITIONS • Working conditions must be “reasonably” safe (Including tools, equipment, machinery and the building itself • Cannot be harmful to an employees safety, health or reputation • OSHA is the gov’t agency that checks a business “IF” its reported by an employee

13. FAIR LABOR STANDARD LAWS • Law was established to create a minimum wage and max hours for employees (Fair Labor Standards Act) • Overtime must be paid at times and a half for hours over 40 • Law does not protect professionals like executives, administrators or other professionals paid by salary

14. PAYROLL DEDUCTIONS • Any taxes or insurances required by law to be deducted from an employees paycheck • Includes, Federal taxes, State Taxes, Unemployment, Social Security and Medicare • Social Security is a tax matched by your employer • Workers compensation is paid if an employee is hurt at work • Unemployment is paid if you are fired without cause or laid off (Support yourself)

15. DUTIES TO MINORS • State and Federal laws protect minors • Federal law states no child under 14 may work (Exceptions- agriculture and entertainment) • State law regulates age restrictions such as maximum hours during school, night work restrictions and more.. • Main objective of early child labor laws was that they took jobs away from adults

16. MILITARY SERVICE • If an employee is discharged “Honorably” they must be re-hired to a job • Also, you must be able to vote in any election by law and employers cannot block this right from you by scheduling you to work during the entire time you can vote

17. LIABILITY ISSUES/EMPLOYMENT • If an employee injures a person or property while working, the “EMPLOYER” is held responsibly (Vicarious liability) • Independent contractors take on this responsibility because THEY are the employer

18. TERMINATION RIGHTS • No reason need be given • Right to challenge if based on discriminatory reasons • If fired with cause, you can challenge because it can effect unemployment benefits • Reason MUST be given • Reason must be backed by proof • Can sue employer if reason is false or they cannot prove • Wrongful discharge if fired without proper reason At Will (Implied) Express agreement

19. DIFFERENCE WITH CAUSE • Means employer has a valid and legal reason to fire a person • Ex) Stealing, fighting, coming into work under the influence • Cannot get unemployment WITHOUT CAUSE • Employer lets a person go for no reason • Usually because they cannot afford to pay them or they are not able to do the work • CAN get Unemployment Reason given No reason given

20. TERMINATION RIGHTS- GOV’T • Government employee is “Public” • Must be fired with cause (Proper reason) • After being given notice of firing, can request a hearing (Court) • Reasons must be backed with proof • No proof, job is given back • Without cause means improper reason

21. TERMINATION RIGHTS- Private • Different if you are At will or Express • Express means you have a time stated in contract (Reason must be given) • At Willmeans no time, therefore no reason must be given • Discharged for cause are things like theft, insubordination or not doing your job as agreed

22. Questions? • TOMORROW: • #2 pencil • Find scantron with your name • Start immediately • NO cell phones, no headphones, no talking

23. ANY QUESTIONS??