Essay about Karen Is an Independent Contractor or an Employee

673 Words Mar 24th, 2012 3 Pages
Scenario Summary: Week 1

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.


1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision?
I believe that Karen is an independent contractor. She was never hired by ABC Utility as a permanent employee. Karen’s tittle was change twice; she had a tittle of a temporary employee and Human Resources Consultant. My rationale for my decision is based on the fact that Karen has been working for ABC Utility for the past five year as an independent contractor and has never
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The fact that Karen was married at the time made the option easy for her to stay as a consultant and use her husband benefits. 4. What are some potential legal implications in the case? What should the utility do to rectify any wrongs in this situation?
Some potential legal implications that I can see in this case is that ABC Utility never offered Karen any benefits when she was hired. ABC Utility should have offered her a full benefit package after a trial period and leaving the decision up to her as to whether she wanted to become an employee of ABC Utility or stay as a consultant. ABC Utility should offer to extend some benefits to her if she is qualified to work as a permanent employee and if the company has a current need to have someone on staff on a full time permanent basis. The decision to make Karen a permanent employee must be carefully reviewed by the human resource department. 5. Draft a sample policy for limiting the use of independent contractors that will help avoid issues like this in the future.
Sample Policy Limiting Use of Independent Contractors
1. Have a consultant sign a form indicating that they will be working for the company for a specific period of time and also specified the conditions they will be working on.
2. Offer and extend option to purchase benefits with the company and explain at

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