BUSA2106 Lecture 22Outline of Last Lecture I. Agency relationshipsII. Agency: liability for contracts and tortsOutline of Current LectureI. Employee versus independent contractor relationshipII. Employment at willCurrent Lecture - Employment law• Agency law -> employment law– Employer – employee relationship is one kind of agency relationship– Distinguished from independent contractor relationship– “Employment law” is the body of federal and state law that governs the employer-employee relationship.- Who is an “employee?”• Employee versus independent contractor– How much control does the employer have over the worker?– Does the worker have more than one employer?– Is the worker’s occupation different from that of the employer?– Is the work done under the employer’s direct supervision?– What is the method of payment?– How much skill is required of the worker?- Factors courts do not consider• Job title/ what label the employer uses internally• How the employer classifies the worker in reporting to the IRS- Why does it matter?• Many laws only apply to “employees.”• Example: FedEx Ground drivers were classified by the company as independent contractors. Sued FedEx, claiming that they were actually “employees,” and that FedEx therefore owed them back overtime under the Fair Labor - Standards Act.– Drivers’ work was wholly integrated into FedEx’s operations.– Paid weekly wages just like FedEx employees.– Receive benefits from FedEx.– Schedules, routes, and hours dictated by FedEx.– Color of drivers’ socks and the length of their hair dictated by FedEx.- Employment at will• Which employees are subject to EAW doctrine?• Rule: Either party may terminate the employment relationship at any time for any reason• Rationale: Rule presumes equality of bargaining power between workers and employersQuestions to ponder …• Do employers and workers have equal bargaining power in determining the terms of their employmentrelationship?• How does EAW benefit employers? Workers?• Are employers likely to discharge at-will workers for irrational or inappropriate reasons? What role does the economy play?• When are workers likely to challenge an at-will
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