Case Scenario of an Independent Contractor

You Decide Template

Name _Rose Soto___________ Date_2/28/2011_____

Scenario Summary: Karen is a human resources consultant who has been working for ABC Utility as an independent contractor for five years and is suddenly in need of employee benefits. As an independent contractor, the utility company is not obligated to offer such benefits to Karen unless she is hired on as a salaried employee by ABC Utility.

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?

Karen is an independent contractor as she has never been hired on to ABC Utility as a permanent employee. Karen was brought on as a human resources consultant.

My rationale for this decision is based on the fact that Karen has been working for the company for a period of five years and began her career with ABC as an independent employee where the human resource manager became very happy with her work. Karen never had a need for benefits prior to her husband's death and due to his death, she finds herself suddenly needing to have benefits.

2. What factors do you feel help contribute to Karen being an employee?

The factors that help contribute to Karen being an employee is the fact that she has been working for the company for a length of five years now where other employees have developed a rapport with her and see her as one of the regular employees. Perhaps portraying to have a solid working relationship with the human resource manager may also be leading to others seeing Karen as a permanent employee of ABC. Being paid a base salary of $10,000 a month