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Employment Regulaiton

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Submitted By cen756
Words 1210
Pages 5
Employment Regulations
Carl Newell
ACC543
June 26, 2011
Tom Benscoter

Employment Regulations
The relationship between employer and employee is complex and involve numerous legal and ethical issues. It is imperative that employers be fully versed in the pertinent areas of employment law. The current issue is a prime example of this fact of life.
Situation Review
The company is involved in a legal dispute with a former contractor. The contractor was injured in route to a sales call in her personal vehicle and failed to attend the sales meeting. This resulted in the loss of the sale. Subsequently, the contractual relationship with the individual was terminated. The former contractor has sued the company alleging wrongful termination.
Independent Contractor
In Section 2 of the Restatement (Second) of Agency an independent contractor is defined as “a person who contracts with another to do something for him who is not controlled by the other nor subject to the other’s right to control with respect to his physical conduct in the performance of the undertaking.” (Cheeseman, 2007, p. 471). Labeling someone and independent contractor does not in make them one in fact. The degree of control the principal has over the agent determines the independent contractor status. In this case the salient issue is that the principal set the work hours and assignments for Beth. This indicates a high level of control and in general the courts have concluded that this is not an independent contractor.
At-Will Doctrine
Because the courts will probably designate Beth an employee and not a contractor the at-will doctrine must be considered in this action. The at-will doctrine gives the employer the right to terminate an employee at any time for any legal reason without legal consequences. Common law exceptions to the at-will doctrine exist including public policy,

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