Legal distinctions between employees and independent contractors

Employer-Employee Relations

UNDERSTANDING the LINK

Employer-Employee Relationship

When Does a Job Applicant Become an Employee?

In general, a contract of employment occurs when an employers offers a position to an applicant and the latter accepts it (Polity 2011). The contract may be written or unwritten but it become legally binding. Under this general concept, an employer who refuses to allow an employee to start working subjects himself to a breach of their contract. Thus, he can be sued in civil court. But labor court judges and arbitrators resolved the confusion by expanding the definition of employee. Section 213 of the Labor Relations Act now states that an employee is one, other than an independent contractor, "who works for another person or for the State and who receives, or is entitled to receive, any remuneration." He or she is "any other person who in any manner assists in carrying out or conducting the business of an employer." These two definitions clarify that an applicant becomes an employee only when he or she begins working for the employer. This means that the employer's legal obligation also begins on the day the employee actually begins working for him (Polity).

C. The Legal Implications and Obligations of the Relationship

The relationship is an agreement to work together in completing tasks for the business (Thibodeaux 2012) for their mutual benefit. Both have rights and responsibilities as provided by business law. They work together under the "master-servant" concept wherein the employer exercises some power over the employee as master and servant, respectively. This arrangement does not allow the employer to abuse that power, as business law protects the employee from unfair treatment. In fact, he has the right to file a complaint or express his views through picketing and strikes. At the same time, the employee is bound to do all the work agreed with the employer. He cannot misuse the employer's resources. He must follow the employer's instructions and use his skills to perform his agreed task. He and the employer together must seek out new skills to benefit the latter. They also review their work together to determine if it meets quality standards (Thibodeaux).

Federal law obliges an employer to offer and provide fair pay to the employee (Morgan 2012). He is also required to meet safety requirements for the employee in performing the service agreed. The company may likewise offer perks and benefits for the employee's needs and in order to motivate him. Perks are a company's way of showing appreciation to the employee. The employer further enhances motivation by showing work flexibility towards the employee. Examples are sending an employee home who is sick or allowing him to work at home during bad weather or when a child is sick (Morgan).

D. Laws that Address Employer-Employee Relationship

Business law obliges the employer to provide the employee with a hazards-free work environment (Thibodeaux 2012). The Occupational Safety and Health Administration publishes standards for strict compliance. An employer who violates these standards can be fined and risk the closure of his business. The employee has the right to report violations to these standards (Thibodeaux).

The employer determines how many hours he wants the employee to work but must fulfill the requirements of the Fair Labor Standards Act for minimum wage for the first 40 hours worked in a week (Thibodeaux 2012). Overtime pay is required beyond 40 hours. Some States follow "right to work" laws. These prevent an employer from firing an employee or withholding his pay if the employee decides to either join or not join a labor union (Thibodeaux).

Federal laws, such as the Civil Rights Act of 1964 and 1991; the Americans with Disabilities Act and the Age Discrimination in Employment Act of 1990 prohibit discrimination during hiring, training and hearing of complaints involving age, gender, nationality or religion (Thibodeaux, 2012). States are empowered to create and enforce their own laws on work fairness derived from federal statutes. There exists a degree of differences in workplace fairness from State to State. Employers who violate fairness laws may be sued and fined (Thibodeaux).