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1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision? Karen is a self-regulating contractor as she has never been hired on to ABC Utility as a permanent employee. Karen was brought on as a human resources consultant. My grounds for this decision is based on the fact that Karen has been working for the company for a period of five years and began her career with ABC as an independent employee where the human resource manager became very happy with her work. Karen never had a need for benefits prior to her husband's death and due to his death, she finds herself suddenly needing to have benefits. 2. What factors do you feel help contribute to Karen being an employee?

The factors that help contribute to Karen being an employee is the fact that she has been working for the company for a length of five years now where other employees have developed a rapport with her and see her as one of the regular employees. Perhaps portraying to have a solid working relationship with the human resource manager may also be leading to others seeing Karen as a permanent employee of ABC. Being paid a base salary of $10,000 a month also helps to portray that Karen is an employee of ABC. 3. What factors favor her being a contractor?

The factors that favor her being a contractor is the fact that she also works for other clients that keep her on a retainer along with those who she's worked with throughout the years as an independent consultant. 4. What are some potential legal implications in the case? What should the utility do to rectify any wrongs in this situation? Some potential legal implications in the case deal with the fact that ABC Utility never offered Karen any benefits when she came on board if they were able to do so and leaving the decision up to her as to whether she wanted to purchase them

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