Employment categories exist to classify workers in a variety of fields and disciplines. The incorrect classifications of workers have legal as well as financial repercussions to a company should a grievance be filed with the Equal Employment Opportunity Commission.
Establishing employment types are essential in determining the legal compliance and responsibilities that an employer must comply with based on federal law. The first type of employment category is establishing if someone performing work is an actual employee. Title VII of the civil rights act of 1964 defines an employee as someone who performs work for an employer (Walsh, 2012). While this is a vague definition of what constitute an employee, it is a start. While the commonsense would suggest an employee is anyone who perform works and receive pays for the work performed. This creates a gray area that exists between the legal and commonsense definition. According to Muhi, “Black’s Law Dictionary defines “employee” as “a person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed”, Muhl, C. (2002, January 1). Bases on this definition, this would imply that an independent contractor, could not be considered an employee because the role and work vary on how it is performed, when it is performed and how much input the employer have over the process.
This type of employee is the traditional form of employment that most worker experience. It offers company benefits, advancement opportunities, and employment stability in a sense. Some disadvantages for this type of employment is the freedom that is relinquished, the creativity control and subjection to rule beyond the control of the employee.
An independent contractor is someone seen as a worker who performs tasks for pay but the contractor is immune to the typical constraints placed on an employee of a company. Their solvency, created through their ability to work efficiently. Independent contractors are free to use their marketable talents for several organizations. They are contracted for short periods to complete work that is not a part of the essential functions of the business that it would need to be a daily or ongoing relationship (Marsh 2012). In disputes, the status of an employee verses an independent contractor the burden of proof fall to the employer to validate the relationship. There are several test that the court have done in the pass to test the relationship with a business. The economic reality and common law test. There is an overlap between the two tests; the common law test stresses the right of control what part of the work performed whereas the economic reality test stresses the market and look at probability of the worker in business for themselves. The advantages for being an independent...