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In: Operations Management

MAN4402 1. Legally, it makes a great deal of difference whether someone performing work is an...

MAN4402

1. Legally, it makes a great deal of difference whether someone performing work is an employee or an independent contractor. But should it make a difference? What is the justification for excluding independent contractors from protection of antidiscrimination and other laws?

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Expert Solution

1. Legally, it makes a great deal of difference whether someone performing work is an employee or an independent contractor. It would make a difference as independent contractors enjoyed a lot of benefits than that of the employees. From the individual perspective, they can make more money as they can work with more than one employer. They can leave the organization as and when they wanted to. Their responsibility is limited to their work only. From the company's perspective, they are also happy as they don't have to provide independent contractors with future benefits or maintain commitments of providing an ideal condition of working. They don't have to pay huge taxes. They don't have to follow rules and standards set up by the government for the employees. They are their boss. So, because of all these above reasons, they should make a difference from the employees working in the organization.

There are justifications for excluding the independent contractors from the protection of anti-discrimination and other laws since they are not permanent employees of the organization and they can leave their job at any point in time, if they face any discrimination or harassment. They are employed with multiple employers and if there is a problem, they can leave that one and go for another, without impacting their financial position a lot. whereas in the case of employees, they are not multiply employed and if they face discrimination or harassment, they cannot leave their job immediately as it would have a huge impact on their financial position. So, the employees need rules for their protection in the workplace and from their employer. But independent contractors do not need rules for protection against discrimination or other issues because of the liberty they enfoyed.


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