Mgt 434 - Employer-Employee Relationship

MGT 434 Employment Law

Employer-Employee Relationship

Mary was initially hired by Little Lamb Company as a programmer via independent contractor. In terms of the contractor, Mary's responsibility was to manage special projects. Mary is an independent contractor as Little Lamb did not intervene with direction or provided materials for completion. Near completion of the project, Mary is informed of another project and the need for additional services. During the second project, Little Lamb integrated an employer-employee relationship with direct contact and guidance from a supervisor. Little Lamb provided Mary with a schedule to adhere to during the project as well as materials. Providing resources and mandating work hours alludes to an employee status. For two years, Mary accepted mandated schedules, materials, and guidance which confirmed an employee status. According to IRS 20-factor test, during the second project, Mary's work performance made her an employee through continued relationships, supervision, structured task and provided material and tools.

Employment Status

The employer-employee relationship changed over the course of time. As noted, Mary was initially hired as a programmer via independent contractor for the Little Lamb Company. As an independent contractor, Mary managed and facilitated the first project without supervision. In the second project, Mary lost decision and facilitating authority which is an indication of change. Once the Little Lamb company inserted authority, Mary's employee status changed. These types of changes may have been discussed during the contractual discussions of the second project. However, Mary accepted the work structure and environment by completing the project and continued work performance for the next two years. The action of acceptance by Mary does not specify her as an employee