Ch 12 Compensating the Flexible Workforce
economic test
Employment relationship exists if individual is economically dependent on a business for continued empolyment
Hybrid test
Employment relationship is evaluated under both common-law and economic reality test factor, with a focus on who has the right to control the means and manner of worker's performance.
common law test
Employment relationships exists if employer has right to control work process, as determined by evaluating totality of the circumstances and specific factors
temporary employment agency
The most common source where companies hire temporary workers
Common law
developed by judges through court proceedings that decide individual cases
Direct hire arrangements
directly hired temp employees only work less than a year
Lease companies
employ qualified individuals and place them in client companies on a long-term basis
Compressed workweek schedules
enable employees to perform their work in fewer days than a regular 5-day workweek
Independent Contractors, freelancers, and contractors
establish working relationships with companies on their own rather than through temp employment agencies or lease companies
Dual employer common law doctrine
establishes temp workers' rights to receive workers' compensation
economic structure, international competition, and shift from manufacturing to a service economy
Three structural changes in the U.S economy that have contributed to the ruse of contingent employment
Banking hours
flexible program that enables employees to vary the number of work hours daily as long as they maintain the regular number of work hours on a weekly basis.
Groupthink
occurs when all members agree on mistaken solutions because they all share the mindset and view issues through the lens of conformity
Flextime schedule limitations
overhead costs and coordination problems
Job sharing
two or more part time employees perform a single full-time job.
right to control
whether the employer has this right based on IRC criteria
Flexible schedules
allow employees to modify their work schedules within specified limits set by the employer
telecommuting
an alternative work arrangement in which employee at home or at some other location besides the office, minimize commute time and expense, no direct contact with employer
Safe harbor rules
-Leased employees covered by leasing company's pension plan -Nonintegrated employer contribution rate of 10% -Full and immediate participation in vesting -Leased employees less than 20% of non highly paid workforce
Flextime schedule advantges
1. lead to less tardiness and absenteeism 2. lead to higher work productivity 3. creating longer business hours and better service.
Core hours
All workers must be present during certain workday hours when business activity is regularly high
Voluntary Part-time employee
Chooses to work fewer hours than 35 per regularly scheduled work week.
Benefits for temp employees
Companies do not provide discretionary benefits
Contingent Workers
Employees who do not have implicit or explicit contract for ongoing employment. Part-time employees, temporary/on-call workers, leased employees, and independent contractors, free lancers, and consultants.
Core Employees
Have full time jobs or part time jobs, and they generally plan long-term or indefinite relationships with their employees.
FLSA
Minimum wage and overtime pay provisions apply to temp employees
37%
Retirement benefits for part-time employees compared to 74% for full-time
Involuntary part-time employees
Work fewer hours than 35 per week because they are unable to find full-time employment.
working condition fringe benefits
telecommuter employees who are provided with office equipment for telecommuting purposes are not taxed when they are provided to the employee within telecommuting relationship
economic realities
test is most significantly applied in context of the Fair Labor Standards Act. Whether employees are financially dependent on the employer