Hiring and Firing And Everything In Between - Chubbworks · PDF fileNATURE AND REPRESENT THE...

May20,2009

PresentedBy:RobertM.Pa6son,Esq.

JacksonLewisLLP199FremontSt.,10thFl.SanFrancisco,CA94105

(415)394‐9400pa6sonr@jacksonlewis.com

HiringandFiringAndEverythingInBetween

Jackson|LewisLLPRepresen2ngmanagementexclusivelyinworkplacelaw

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THEMATERIALS CONTAINED IN THIS HANDOUTWERE PREPARED BYTHE LAW FIRM OF JACKSON LEWIS LLP FOR THE ATTENDEES’ OWNREFERENCE IN CONNECTION WITH MANAGEMENT EDUCATIONSEMINARS PRESENTED BY THE FIRM. SINCE THESEMATERIALS ANDRELATED DISCUSSIONS ARE INFORMATIONAL AND EDUCATIONAL INNATURE AND REPRESENT THE SPEAKER’S OWN VIEWS, ATTENDEESSHOULDCONSULTWITHCOUNSELBEFORETAKINGANYACTIONSANDSHOULD NOT CONSIDER THESE MATERIALS OR DISCUSSIONSTHEREABOUTTOBELEGALOROTHERADVICE.PROFESSIONALADVICESHOULDBEOBTAINEDBEFOREATTEMPTINGTOADDRESSANYLEGALSITUATIONORPROBLEM.

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ABOUTTHEPRESENTERROBERTM.PATTISON

RobertM.Pa6son,istheManagingPartneroftheSanFranciscoofficeofJacksonLewisLLP.

Mr. Pa6son represents employers in employment li[ga[on, fair employment,wage andhour,laborrela[onsandhumanresourcesma]ers.Hehasrepresentedemployersinavarietyoflaborand employment ma]ers in state and federal courts – including in wage‐hour class ac[onlawsuits – andbefore government agencies throughout thewesternUnited States for over 25years.

Mr.Pa6sonisamemberoftheStateBarofCaliforniaanditsemploymentlawsec[on. Heco‐authored "Aggressive Defense of Employment Li[ga[on", Surveying the Workplace LawLandscape, 1995 Jackson Lewis Conference for Corporate Counsel; "The Secret Truth AboutInspec[onofPersonnelFiles",LaborandEmploymentLawNews,Vol.5,No.5(Spring1987);and"Collec[ve Bargaining: Management's Opportunity to Improve Labor Economies", EmployeeRela[onsJournal,No.1(Summer1985). Hewastheco‐editorofLowestResponsibleBidder: AGuide to Merit Shop Construc[on, Execu[ve Enterprises Publica[ons Co., Inc., New York, NY(1985).

Mr. Pa6son is a graduate of the University of California’s Has[ngs College of the Law in SanFrancisco (during his third year, he clerked for the Division of Judges of the Na[onal LaborRela[onsBoard)andoftheUniversityofCaliforniaatDavis.

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WhyAreTheseTopicsImportant?

BecauseEmployment‐RelatedClaimsAreontheRise!

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ClaimsontheRise•  More than one‐half of all employersweresuedbetween2000and2005.

•  In 2006, the Equal EmploymentOpportunity Commission (“EEOC”) filed403 lawsuits on behalf of employees,comparedtoonly332suitsfiledbythatagencyin1997.

Source: SocietyforHumanResourceManagementDepartmentofJus2ce

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The“BigFour”ReasonsEmployeesBringClaims

•  Treatmentattermina2on:Dignity,respect,honestexplana2ons

•  Financialhardship

•  Fairtreatmentduringemployment

•  Expectedpayofffromclaim

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TheConceptofEmployment“AtWill”&Erosionofthe“At‐Will”

Doctrine1. ContractClaims2. PublicPolicyClaims

3. TortClaims

4. General“WrongfulDischarge”

5. Discrimina2onLaws

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OVERVIEWOFEMPLOYMENTDISCRIMINATIONLAWS

•  TITLEVIIOFTHECIVILRIGHTSACTOF1964•  EQUALPAYACTOF1963•  AGEDISCRIMINATIONINEMPLOYMENTACT•  EXECUTIVEORDER11246•  VOCATIONALREHABILITATIONACTOF1973•  CIVILRIGHTSACTOF1866•  FAIRLABORSTANDARDSACT•  AMERICANSWITHDISABILITIESACT•  FAMILYANDMEDICALLEAVEACT•  WORKERADJUSTMENTANDRETRAININGNOTIFICATION

ACT•  UNIFORMEDSERVICEEMPLOYMENTANDREEMPLOYMENT

RIGHTSACT•  STATELAWS

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BasicsofEqualEmploymentOpportunity

 Applicantsandemployeeswithequalqualifica2onsandskillsmustbetreatedequally.

Employersmustprovidevalidbusinessreasonsforadverseac2ons.

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BasicsofEqualEmploymentOpportunity

 Excep2onstotheruleofequaltreatment:

Religion

Disability

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SampleEqualEmploymentOpportunityPolicy

[Employer]believesthatallpersonsareen2tledtoequalemploymentopportunity.[Employer]doesnotdiscriminateagainstnorfavoritsemployeesorapplicantsbecauseofrace,color,religion,sex,age,veteranstatus,disability,na2onalorigin,oranyotherlegallyprotectedstatus.Equalemploymentopportunitywillbeextendedinallaspectsoftheemployer‐employeerela2onship,including,butnotlimitedto,recruitment,hiring,training,promo2on,transfer,demo2on,compensa2on,benefits,layoff,andtermina2on.Inaddi2on,[Employer]willmakeareasonableaccommoda2ontoknownphysicalormentallimita2onsofanotherwisequalifiedapplicantoremployeewithadisabilityunlesstheaccommoda2onwouldimposeanunduehardshipontheopera2onofourbusiness.Allemployment‐relatedpolicies,procedures,andac2onsaredesignedtocomplywithapplicablelaws.

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SmartHiring

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StartOffOnTheRightFoot

•  Thebestplacetoavoidaproblemisattheoutsetoftheemploymentrela2onship

•  Effec2ve(andlawful)interviewing

•  Smarthiring‐the“bestqualified”

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EmploymentApplica[onsTimesHaveChanged–ChangeWiththe

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DO’SANDDON’TSOFEFFECTIVE

JOBINTERVIEWING

TheJobInterview

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 Why do we interview? To obtain necessaryinforma2onaboutjobapplicants.

 General rule: limit inquiries to only thosesubjects necessary to evaluate the applicant’ssuitabilitytoperformhisorherjob.

 Applicants, employees and inves2gatoryagencies (like the EEOC)will presume that anemployer uses all informa2on it collects inmakinghiringdecisions.

KeystoEffec[veandAppropriateInterviewing

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 Besureallques2onsarejob‐related.Askaboutapplicant’sexperience,skills,abili2esandpastperformance.

 Treatallapplicantsthesame.

KeystoEffec[veandAppropriateInterviewing

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Do’sandDon’ts:ImproperQues[onsCan

LeadtoLiability

  If a job requires over2me, travel orreloca2on,explainwhatisrequiredandaskwhether the applicant can fulfill theserequirements.

  Focus on the substance of a candidate’sexperience rather than on the number ofyearsofexperiencethecandidatehas.

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LeadtoLiability

  ItispermissibletoaskwhetheranemployeecanworkonSundays,SaturdaysorFridaynights,oranyotherschedule,ifthejobrequiresit.

  If you ask about convic2ons, make clear thatcriminal convic2ons are not an absolute bar toemploymentbutwillbeconsideredinrela2ontospecificjobrequirements.

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LeadtoLiability⊗ Marriage or Family Status: Avoid

ques2onsaboutmaritalstatus,numberofchildren,andchildcare.

⊗ Avoid ques2ons that presume marriedwomen or people with children will beless able to work long hours. Do notrequest informa2on about child carearrangements.

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⊗ Avoid ques2ons about home life, socialinterestsandhobbies.

⊗ Pregnancy; childbearing plans: AVOID THESUBJECT ENTIRELY!!! Do not ask anyapplicant,male or female, about his or herplanstohavechildreninthefuture.

⊗ Age: Do not ask ques2ons or make anystatements or references to an applicant’sage, including, date of birth or gradua2ondate.

LeadtoLiability

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⊗ Poli2cal Affilia2on: Do not ask an applicant’spoli2cal affilia2on or other ques2ons thatmayelicit informa2onabouttheapplicant’spoli2calviews.

⊗ Source of income: Do not ask an applicantwhether he or she receives alimony or childsupport, or other ques2ons that may elicitinforma2on about the applicant’s sources ofincome.

LeadtoLiability

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⊗ Religion: Do not ask an applicant’s religiousfaith, denomina2on or affilia2on, or whichchurchtheapplicantbelongsto.

⊗ Personal appearance: Do not comment on anapplicant’s personal appearance or dress,including, in par2cular, hairstyles or dress thatmay be associated with a par2cular racial orethnicgroup.

LeadtoLiability

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⊗ Donotaskwhetherapplicantisaci2zenorapplicant’sna2onaloriginorbirthplace.

⊗ Do not ask applicants whether they haveeverbeenarrested.

⊗ Donotask“na2ve”language,whereorhowthe applicant learned the language orwhetherEnglishis“second”language.

LeadtoLiability

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⊗ Club Memberships, Associa2ons, UnionMemberships: onlyaskaboutprofessionalorotherassocia2onsthathaveabearingonthejobrequirements.

⊗ Sexual orienta2on: Do not ask ques2onsabout sexual orienta2on or ques2ons thatmight be interpreted as asking about sexualorienta2on (for example, the gender ofsomeone’sroommate).

LeadtoLiability

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ObtainingandUsingThird‐PartyInforma[onintheApplica[on

Process

TypesofThird‐PartyInforma2on:

•  Inves2ga2veConsumerReports:‐ TheFederalFairCreditRepor2ngActProvidesGuidelinesFor EmployerUseofInves2ga2veConsumerReportsintheHiring Process

•  CriminalBackgroundChecks

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BasicsofFRCACompliance:

•  Step1.Providedisclosureandobtainconsent.

•  Step 2. Provide Disclosure of Employer’s Request for theInves2ga2veConsumerReport.

•  Step 3. No2fy the applicant or employee of adverseinforma2on in inves2ga2ve consumer report consideredbeforeadverseemploymentac2onistaken.

•  Step4.Makeemploymentdecision.

•  Step5.No2fytheapplicantoremployeeofadverseac2on.

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Pre‐EmploymentScreeningApplicantsWithCriminalRecords

Indeterminingwhetherornottodenyemploymentbasedonanapplicant’s convic2on of a crime, an employer should considerthefollowingfacts:

A.therela2onshipofthecrimetohis/herjobdu2es; B. the nature, number and circumstances of the

offense(s)forwhichtheindividualwasconvicted; C. the length of 2me intervening between the

convic2on(s)andtheemploymentdecision.D.theindividual’semploymenthistory;andE.theindividual’seffortsatrehabilita2on.

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THETOPTENTIPSFORAVOIDING

LEGALLIABILITYINHIRINGEMPLOYEES

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TheTopTen...

1.  Train your supervisors and managers onpermissible and impermissible employmentinquiries.

2.  Ensure your interview process is accessibletodisabledapplicants.

3.  Review and, if necessary, modify youremployment applica2on with “fullemployment”inmind.

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TheTopTen... 4.  Check into the criminal backgrounds of all

applicants.

5.  Beawareofnegligenthiringclaims.

6.  Comply with the requirements of the FairCreditRepor2ngAct.

7.  Avoid crea2ng unrealis2c expecta2ons ininterviews, offer leqers or other pre‐hirecommunica2ons.

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TheTopTen...

8.  Donot create any documenta2on thatmayproveproblema2clater.

9.  Bewaryofcoyornon‐commiqalapplicants,conten2ous salary nego2a2ons, and othersignsoffuturetrouble.

10. Devote sufficient resources and talent tothoroughly orient new hires to yourcompanyanditsculture.

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“TheEverythingInBetween”

– PerformanceEvalua2ons

– HowToEffec2velyAndConsistentlyDiscipline

– ComplianceWithWage/HourLaws

PerformanceEvalua[ons

•  ImprovesEmployeePerformance

–  Makesgoodperformerbeqer.–  Makespoorperformancebeqer.

•  Donotusenega2veevalua2onstopunish.•  Implementacorrec2veevalua2onphilosophy.

•  CreatesaRecordofPerformance.

–  Usedaslegi2matebasisformakingpersonneldecisions.–  Usedasevidenceinalawsuitoragencyproceedingfiledby

disgruntledemployeeorformeremployee.Jackson|LewisLLPRepresen2ng

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WhyisthePerformanceEvalua[onProcessCri[cal?•  Avoidstheappearance,letalonethereality,offavori[sm

anddiscrimina[on;

•  Providesmanagementanopportunitytoassessthediverse

rangeofemployeestrengthsandneeds;

•  Givesmanagementobjec[vecriteriatouseinevalua[ngand

trainingemployees;and

•  Establishesaforumfordocumen[nganddiscussingweakANDstrongperformance.

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Things to Avoid   The“Halo”Effect–donotletyourposi2vera2ngin

oneareainfluenceyouinotherareas;

  The“Horn”Effect–Donotletyournega2vera2ngin

oneareaaffectotherareas;

  Leunglengthofserviceaffecttheperformanceaspect

oftheevalua2on;and

  Considera2onofnon‐workrelatedfactorsthatcould

bediscriminatory.

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DisciplinaryWarnings

•  DualPurposes.

– Correc2ve.

– Legal.

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WhattoIncludeinDisciplinaryWarning.

•  Problem–Whathappened?Bespecific!–  Ifproblemresultsfromahistoryofsimilarincidents,refertothishistory.

–  Ifaprobleminvolvesspecificimproperlanguage(obscene,sexual,insubordinate,etc.),statetheexactwordsinquotes.

–  Ifaprobleminvolvescarelessnessorpoorworkperformance,describetheactorspecificdeficiency.

–  Ifaproblemisaviola2onofCompanypolicyorarule,statethepolicyorrule.

WhattoIncludeinDisciplinaryWarnings(cont.)

•  Implica2ons.– Describewhytheproblemisimportanttoyou,yourdepartmentortheCompany.

– Whateffectdoesithaveonotheremployees?

WhattoIncludeinDisciplinaryWarning(cont.)

•  PriorRecord.– Whatistheemployee’spriorrecordonthisorsimilarproblems?

– Whatpriorcontactshavetherebeenonthis?

WhattoIncludeinDisciplinaryWarning(cont.)

•  Correc2onDesired.

–  Inwhatwaysdoyouexpecttheemployeetocorrecthisproblem?Bespecific.

WhattoIncludeinDisciplinaryAc[on(cont.)

•  DisciplinaryAc2on:

– Stateclearlywhatac2onisbeingtakennowandwhatfutureac2onmaybetakenifnoimprovementismadeorifincidentisrepeated.

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IFTHEEMPLOYEEDOESNOTIMPROVE

  Ensurethereisappropriatedocumenta[on

ofpast/currentproblems

  Ensuredisciplinarystepsoutlinedinthe

handbookhavebeenfollowed

  Makesuretheemployeewasgiventhe

opportunitytocorrecttheproblem(s)

  Considerpasttreatmentofotheremployees

undersimilarcircumstances

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Termina[onProcesses

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Pre‐Termina[onConsidera[ons

Employment at Will or Employment

Contract? Benefits about to

Consulted HR and Legal?

Protected status arguably have anything to do

with the decision?

Articulated the real reason? Separation Notice? Logistics (timing,

location, witnesses)

Employee put on notice and advised how to

improve and by when? Evaluations and documentation

support the decision?

Final Paycheck, Benefit Calculation, Coverage of Duties, Announcement, etc.

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TheDischarge•  Twomanagement

representa2ves

•  Bedirect,professional,andfirm

•  DoNotArgue/Jus2fy

•  DoNotSuggestSelf‐Improvement

•  DoNotApologize

•  AvoidDiscriminatoryRemarks

•  ArrangeReturnofCompanyProperty

•  Non‐Compete?

•  ExplainAnyBenefits

•  ExitInterview

•  EscortOff‐site

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Post‐Termina[onConsidera[ons1.  Documenta[on

2.  InformThoseWithBusinessNeedtoKnow

5.  Separa[onandReleaseAgreement

6.  References(Name,DatesofEmployment,andPosi[onHeld)

9.  COBRANo[fica[on/401(k)

11.  RemoveFromPayroll

12.  AccessIssues ‐Accesstoproperty

‐Computeraccess

8. RequestforPersonnelFile

9. AppealorDemandLe]er andOtherBenefitIssues

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Miscellaneous

‐  Resigna2on

‐  Separa2onNo2ce

‐SeveranceAgreements

‐COBRA

‐OutplacementAssistance

‐SecurityPrecau2ons

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DEVELOPINGANEMPLOYEEHANDBOOK

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PurposeofEmployeeHandbook

•  LegalCompliance/Protec[ons•  DisseminateOpera[onalPolicies•  “Sell”YourCompany•  CommunicateCorporateCulture•  ConveyExpecta[ons•  Effec[veReferenceToolforEmployees•  Effec[veReferenceToolforManagement

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LegalCompliance

•  Disclaimers(statespecific)

•  EEOPolicies

•  HarassmentPolicies

•  ComplaintProcedure

•  TimeAwayFromWorkPolicies(paidandunpaid)

•  StateRequiredLeavesandOtherLaws(FMLAifapplicable)

LegalProtec[ons

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Opera[onalPolicies

•  ExplainOpera[onalPrac[ces(createrealis[cexpecta[ons)

•  DefineRulesAndRegula[ons

•  JobAdvancementOpportuni[es

•  LeavesofAbsence

•  WorkplaceResponsibili[esandConduct

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“Selling”YourCompany•  KeepitSimple!

•  EnhanceEmployeeRela[ons  ConveyCompanyculture/values,e.g.VisionStatement WelcometoCompany  Describe(andestablish)workenvironment Opendoor  Enhancereten[on

•  “Selling”Benefits  Createposi[vepercep[on Maximizeuse

•  EnhanceRecrui[ng

•  CommunicateCompany’sVisionStatement

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Audi[ngHR

•  Whyaudityourhumanresourceprac2ces?–  EmploymentlawwhichimpactsHRevolvesover2me–  HRpoliciesandprac2cesmustkeeppacewithdevelopmentsinthelawandHRknowledge

–  Needtoregularlyaudittokeeppoliciesandprac2cesaheadofthoseofyourcompe2tors

KeyAreastoAudit

•  AreWorkersBeingTreatedProperlyAsEmployeesorIndependentContractors?

•  Dowehaveemploymentcontractsandaretheyup‐to‐date?•  Areemploymentapplica2onscurrent?•  Doouremployeehandbookscontainappropriatedisclaimers?•  Doouremployeehandbookcontainallessen2alpolicies?

Employeesv.IndependentContractors

•  Nosingletesttodeterminewhetheraworkerisanemployeeorindependentcontractor.

•  Therearedifferenttestsusedbythecourtsandregulatoryagencies.

•  Weneedtocompletelyconsideralltestsinordertoproperlyclassifyaworker.

TheIRS’s“20Ques[ons”

•  IndeterminingwhetheraworkerisanemployeeforwhomincometaxmustbewithheldandsocialsecurityandFICApaid,theIRSconsidersanemployer’sresponseto20ques2ons.

TheIRS’s“20Ques[ons”•  Doestheworkerhavetocomplywithinstruc2onsaboutwhen,whereandhowworkistobedone?

•  Doyouprovidetrainingfortheworker?•  Aretheservicesprovidedintegratedintoyourbusinessopera2ons?

TheIRS’s“20Ques[ons”Con[nued

•  Musttheservicesbeperformedbytheworkerpersonally?

•  Cantheworker“subcontract”?•  Istherela2onshipcon2nuing?•  Doyousettheworkers’hours?•  Doestheworkerdevotehis/herfull2metoyourbusiness?

•  Istheworkperformedatyourplaceofbusiness?

•  Doyoudeterminetheorderorsequenceofworktobeperformed?

•  Doestheworkerprovideregularreports?•  Istheworkerpaidonanhourlyorsalarybasis?

•  Doyoureimbursetheworkerforbusinessexpenses?

•  Doyoufurnishtheworkerwithtoolsandmaterials?

•  Doestheworkerhaveaninvestmentinhis/herowntoolsorfacili2es?

•  Cantheworkerrealizeaprofitorsufferaloss?

•  Cantheworkerperformworkforothers?

•  Doestheworkermakehis/herservicesavailabletothegeneralpublic?

•  Istheworkersubjecttodismissalfornon‐performanceofcontract?

•  Cantheworkerterminatetherela2onshipwithoutliabilityforfailuretocompleteajob?

The“EconomicReali[es”Test

•  UsedbythecourtsandtheWageandHourDivisionoftheDepartmentofLabortodetermineifworkerisanemployeeen2tledtominimumwageandover2mecompensa2on

•  Focusesonworkers’abilitytomakeaprofitorsufferaloss

EmploymentContracts

•  Dowehaveemploymentcontracts?•  Aretheyup‐to‐date?Check:

•  Posi2on•  Du2es•  Compensa2on•  Term•  Termina2onProvisions•  Arbitra2onClause•  Non‐compe22on/NoSolicita2onRequirements

QUESTIONS

ANSWERS655/20/09

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