Comp Ch 12

Voluntary part-time Ees

choose to work fewer than 24 hours per regularly scheduled workweek. Sometimes supplement full-time with part-time to meet financial obligations or choose PT as a life-style choice

Benefits for PT Ees

companies generally do not provide discretionary benefits to PT ees and are not required to offer protective insurance but those that do receive health insurance are protected under the Consolidated Omnibus Budget Reconciliation Act (COBRA)

Lease Companies

employ qualified individuals and place them in client companies on a long-term basis. most bill the client for the direct costs of employing the workers and then charge a fixed fee based on either a fixed %age of the client's payroll or a fixed fee per ee

Dual Employer Common Law Doctrine

establishes temp workers' rights to receive worker's compensation. According to this doctrine, temp workers are ees of both temp employment agencies and the client companies.

Ee Benefits for leased workers

generally entitled to participation in the client companies' qualified retirement programsl however, the leasing company become responsible for leased ees' retirements if safe harbor rule requirements are met

Core Employees

have full-time jobs or part-time jobs and they generally plan long-term or indefinite relationships with their employers. Assumed to work standard schedules

Indepedant contractor definition

one who in the exercise of an independent employment, contracts to do a piece of work according to his own methods and is subject to his er's only as to the end product or final results of his work.

COBRA

provides ees the opportuinty to continue receiving er-sponsored health care insurance coverage temporarily following termination or layoff.

Contingent Workers

those who do not have an implicit or explicit contract for ongoing employment. "on-demand" employment.

Ee benefits for temp workers

typically not provided discretionary benefits.

independent contractors, freelancers, & consultants

typically possess specialized skills that are in short supply in the labor market. Make up 34% of workforce in US. Selected to complete particular projects of short-term duration.

Involuntary part-time ees

work fewer than 35 hours/week because they are unable to find full-time employment. stereotype that they are lowskilled but many actually hold entry level career track jobs.

Part time employee

works less than 35 hours a week. 2 types: voluntary and involuntary

On-call arragements

another method for employing temp workers. On-call ees work sporadically throughout the year when companies require their services. companies can schedule workers for several days or weeks in a row

Reasons for increased reliance on contingent workers

(1) economic recessions (2) international competition (3) shift from manufacturing to a service economy

Groups of Contingent Workers

(1) part-time employees (2) temporary and on-call ees (3) lease ee arrangements (4) independent contractors, freelancers, and consultants

factors for establishing relationships with temp employment agencies

(1) reputation (2) fees

Other reasons companies hire temp workers

(1) temp employment arrangements provide ers the opportunity to evaluate whether lefit need exists for creating new positions (2) temp employment arrangements give er the opportunity to decide whether they want to keep ee FT "long term interview" (3)employing temp workers is often less costly than core workers (benefits)

2 main reasons companies hire temp workers

(1) temp workers fill in for core ees who are on approved leaves of absence (2) temp workers offer extra sets of hands when companies' business activities peak (holiday season, summer for amusement parks)

Advantages of PT workers

-flexibility -cost savings (related to benefits, OT for FT ees pay by hiring PT workers during peak times)

Pay for PT Ees

PT ees earn less on average than core ees.

Job Sharing

PT employment agreement- two or more PT ees perform a single FT job. these tts may perform all job duties or share the responsibility for particular tasks. Represents a compromise between ees' needs or desire to not work FT and ers'needs to staff jobs on a FT basis

temporary workers v. seasonal workers

temp workers can fill in at any time. seasonal workers work during set regular periods every year. some seasonal workers not covered under FLSA

Pay for temporary employees

temp workers earned avg $12.4 hourly, FT earned double. Covered by FLSA (minimum wage and OT hours).