Chapter 12

Independent Contractors

Includes freelancing and consultants. External individuals who perform a specific job. Companies are not responsible for taxes, ERISA, FMLA, NLRA, Title VII, ADA, etc. CAUTION: It is not always clear that someone is an independent contractor.

Benefits for Part-Time Workers Health Insurance

Part-time workers are not protected under PPACA (i.e., ACA/Obamacare). Part-time workers can purchase health insurance under COBRA Rules

Independent contractors

business of 1

What does unskilled short-term labor eventually harm?

competitiveness

What can be complicated with contingent workers?

hours worked, paid vacation, sick leave

What do part-time labor tend to erode?

labor standards

What can contingent workers be easily exploited with?

lower wages and benefits

What are long days of compressed workweeks for contingent workers?

they are stressful and potentially dangerous

Need to be careful of how you are treating contractors

- if you are treating your contractor as an employee you can be liable for all the pay and benefits

Why use a flexible workforce?

-Cheaper -more flexible -leased workers and independent contractors free up the organization to focus on other things more central to their strategic competencies -leased workers and independent contractors can reduce legal obligation and risk

Examples of contingent workers

-part time -temporary and on-call -leased employees -Independent contractors, freelancers, consultants

leased worker

-temp agency -work for a different company than where they actual do the work

Voluntary Part-Time Employees

Chooses to work fewer than 35 hours. Likely to stay.

Are you an employee of a contractor?

Common Law Test - based on common law (previous court cases) worker controls the details of the work. Judge on output, not how they do it. Shouldn't be training them. No tools/safety equipment. shouldn't be only client after a long period of time.

What do you give up using leased workers or independent contractors?

Considerable control

Are you an employee or a contractor?

Economic Realities Test - see details on other test as well. know that there are two tests -changes to the nature of the work need to be discussed with the agency they come from

Benefits for Part-Time Workers -Retirement

Employers must allow part-time workers to participate in retirement plans after fulfilling the ERISA (Employee Retirement Income Security Act of 1974) age and service requirements

Leased Employees

External organizations hire and train people to take care of specific organizational functions (e.g., food service-ARAMARK). The leasing company is the employer for wages and legally required benefits. The primary company still retains some obligation for discretionary benefits and liability. Caution: Leased workers are not temporary employees! Leased workers are a case of dual-employment! Hire a lawyer!

Temporary

Fill in for core employee or work during periods of high demand. Typically no discretionary benefits.

Flexible Work Schedules

Flexible work schedules are valuable recruiting and retention tools that allow for greater diversity

What should the expectation be for length of assignment?

Less than 1 year

How much concern do temporary employees tend to have for improving company operations?

Little

Who are contingent workers?

No implicit or explicit contract for ongoing employment -best to have time period, but if can't have exact have conditions

Flextime

Set weekly or monthly hours. Make sure work is outcome based.

Job Sharing

Two or more part-timers perform one job

Telecommuting

Work at home or off-site. Workers tend to become invisible and performance appraisals are difficult. Workers have difficulty remaining relevant.

Involuntary Part-Time Employees

Works fewer than 35 hours per week because they are unable to find full-time employment. Likely to leave.

Compressed Workweeks

Workweek is fewer than five days. Make sure standard business hours aren't required.