Case Study 3-2 on pages 128-131 of the textbook. This is a critical case involving the proper classification of workers as either employees or independent contractors. Improper classification of workers can result in substantial penalties by the federal government. Some penalties may be so severe as to bankrupt an organization. The topic is definitely immediate, important, relevant and actionable, proper classification of individuals as either employees or independent contractors.
1. Which of the company’s arguments for independent contractor status are most compelling?
2. Which of the union’s arguments for employee status are most compelling?
3. Are some factors inherently more important than others? If so, which ones, in this case, are more important?
4. Is this simply a case of who wins more of the 9 factors?
5. If you were the Administrative Law Judge working for the NLRB how would you rule in this case and why?
6.The audit committee of DHB industries was criticized for failing to carry out its oversight responsibilities. What are the primary responsibilities of a public company’s audit committee?