The IRS classification test for independent contractors versus employees

¶ … IRS' three areas (categories) of determination of whether someone is hired as an IC or EE.:

Behavioral- Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial- Are the business aspects of the worker's job controlled by the payer?

Type of relationship- Are there written contracts or employee type benefits

State two reasons it may be advantageous for an Employer to try and classify someone who does work for them as an Independent Contractor rather than as an employee:

___Can be cheaper for the employer

3.___Less paperwork and oversight required

State two reasons it may be advantageous for an Employer to try and classify someone who does work for them as an EMPLOYEE Independent Contractor:

4.___Less paperwork and oversight required

5.___Less responsibility for the employer if a negative impact occurs.

6-9. Title Vll prohibits employers from discriminating of basis of (List FOUR):

6.___hiring

7.___firing

8.___promotion

9.___training

10. Generally, how long does a private employee have to file a claim with EEOC or be barred from doing so?___180 days

11-14. During the interview Linda had with Leslie Accounting Firm, Gale was first asked a series of questions. Are any of these questions illegal? State the controlling appropriate law if you feel it has the potential to be illegal and why:

11. Her age: Asking a person's age specifically is illegal. However asking if a person can produce proof that they are 18 years of age is not illegal.

12. Whether she had any children: This question is illegal. It is unlawful to deny work to an individual if they are planning to have, or do have children. Women in particular are often discriminated against, due to their time constraints.

13. What church she belonged to: This is illegal. Employers may want to look into your lifestyle to see how your life will interfere with work. However, asking a question about a persons religion is illegal.

14. What her husband did for a living: Asking a person's marital status is illegal. Also, if the candidate is female, it is illegal to ask for sexual orientation

E. Why did she appear to be limping: It is illegal to ask about a disability unless you are making a reasonable accommodations for the candidate or employee.

15. To be legally validated, an employer must show that the eligibility test is job related and consistent with: ___Applicable laws and regulations

16. Preemployment tests should not be for ___:

a. finding the best individual for a position

b. making sure the individual has no problems that would interfere with job duties.

c. general computer skills unrelated to the job sought

d. all of the above are permissible tests

17-18. List two of the elements of a fair discipline policy:

Must be consistent for all employees irrespective of race and sexual orientation

Giving the employee notice that there is a problem

19. List one of the factors used to determine "availability" in affirmative action cases:

There is a certain percentage of African-American candidates that are applying or looking for the particular job.

20. What percent of EEOC claims are reverse discrimination complaints?

A. 3

B. 5

C. 10

D. 25

21. What is the monetary floor an employer/federal government contractor must meet in order to have Executive Order 11246 imposed?

A. $5,000+

B. $10,000+

C. $20,000+

D. $30,000+

22. White males hold what percent of the senior management jobs?

23. Your professor as well as the text argued the most important reason to maintain a diverse workforce was what?

Connection with the customer

Motivation

Innovation

Quality improvement

24-25. Briefly explain difference between Disparate Treatment and Disparate Impact:

Disparate treatment is defined by the United States Supreme Court as discrimination in which "the employer simply treats some people less favorably than others because of their race, color, religion, sex, or national origin." Whether or not an employer can be found liable "depends on whether the protected trait ... actually motivated the employer's decision

Disparate impact focuses not on discriminatory intent, as disparate treatment does, but instead on discriminatory consequences. Disparate impact involves "employment practices that are facially neutral in their treatment of different groups but that in fact fall more harshly on one group than another and cannot be justified by business necessity ... Proof of discriminatory motive, we have held, is not required under a disparate-impact theory.

26-27. It is discovered that, at a health club, the owner has been putting a notation on the application of black membership applicants that reads "DNWAM," which means, "do not want as member." In addition, the black membership applicants are charged higher rates for the club fee, and are much less likely to be financed, as other, non-black applicants are.

26. Can the black membership applicants bring a successful action under Title VII?___YES

27. Why or why not?

Price discrimination

28-29. Provide your own hypothetical example of an employment practice that could have a Disparate Impact on a particular race.

Affirmative impact could negative impact a race other than African-American who is more qualified for the position.

30. Women earn about ___78%___ percent of men's pay

31. XYZ corporation has a policy that prohibits men from wearing any type of earring, yet allows its' female employees to wear virtually all types of earrings. This is illegal gender discrimination and covered under Title VII

a. True

___Hostile Work Envrionement

39-50. Discuss the tension between the principles of the free market and regulation of the employment relationship by a) briefly describing the theories and how they differ; and, b) your own personal view(s) as to the best approach and whether the current legal requirements on employers are over or under burdensome. Why or why not?

Free market regulation allows the market to determine the best course of action in regards to employment regulation. For example, a free market system would set minimum wage as oppose to the government. It is believe that a free market system is the best system for "price discovery." In this instance, the free market would determine the appropriate price for labor. Generally, this price would be commensurate with the value the employee provides for the both the employer and consumer. For example, using the minimum wage example, a free market would allow for people to work for less than the current minimum wage. Although pay would be low, more people would be employed, allowing for more individuals to gain skills and abilities that can be used for the next position they may have, which is generally higher paying. With a minimum wage however, it is believed that less people are being hired because an employer may be "over paying" for an employee with no skills or abilities. I believe a free market system would allow for some form of manipulation by corporations. I believe, for example women should be paid the same amount as men given their past history and experience. With a free market system, the discrepancy between men and women pay could widen. To be fair, it could also narrow. The problem is society will not know for many years what would happen. I think regulation provides the rules that corporations must abide by as to make their employment practices equal and fair for all. They help alleviate discrimination and allow for an equal playing field. Particularly for women, African-Americans and Hispanics.

In regards to legal and regulatory burden, I believe small businesses are hurt more so than large corporations. Regulation can be costly. We only need to look at recent banking regulation, to see its impact on small community banks. Dodd-Frank, for example, is the most comprehensive financial overhaul since the great depression. Since its implementation, small banks have diminished while large banks have only gotten larger. The same applies with legal and employment requirements. I believe some of these regulations should be loosened for small entities that don't have the compliance or legal staff to deal with the applicable laws and regulation.