Question

1) What is an employee at will, why is it such an advantage to an employer?

2) What is the difference between an independent contractor and an employee. What advantages are there for each?

3) Does discrimination in the workplace still exist? Are our laws effective in removing it?

Answer 1

1) Employee at will means an employee can be terminated at any time without any reason, explanation, or warning. It also means an employee can quit at any time for any reason.

At-will employment has grown increasingly more popular over time. This type of employment involves a great deal of flexibility for both the employer and the employee. It allows both parties to engage in a fair, comfortable work environment without any major commitments from either side. Employers, for example, can change the terms of employment—such as wages, benefit plans, or paid time off—without notice or consequence.

Employer's Benefit: A major benefit of employment-at-will to the employer is that it can be beneficial for an employer who wishes to terminate the employee for performing poorly. It is not essential for the employer to give reasons to theemployee for his termination.

2) A business may pay an independent contractor and an employee for the same or similar work, but there are important legal differences between the two. For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes. Employment and labor laws also do not apply to independent contractors.

The table highlights some differences in the business relationship with employees and independent contractors.

DESCRIPTION	EMPLOYEE	CONTRACTOR
Employment Laws	Covered by a number of federal and state employment and labor laws	Not covered by employment and labor laws
Hiring Practice	A potential employee completes an application that is handled by Human Resources. The approved applicant receives a job offer. After a person accepts the position, the employer must ask for additional information about the employee such as date of birth, marital status, and citizenship status.	A potential contractor normally interacts with the person or department that wants a certain service or task completed. A potential contractor might complete a proposal. The contractor enters into a contract, including a Statement of Work with the legal or procurement section of the business.
Reporting to Other Agencies	Reports for state and federal Unemployment Insurance	None
Value of Work or Contract	Earns either an hourly rate or a salary	A contract may be for a total amount. It could be for an hourly, daily, or weekly amount that ends on a specific date or a total amount to be paid when the job is completed.
When Paid	An employee pay period must remain the same unless formally changed. Pay periods vary from one week to one month. Federal and state laws require that an employee be paid on the normal pay date or earlier if the pay check is not negotiable on the normal pay date, which can occur on holidays.	Accounts Payable pays a contractor after receiving an invoice. The terms of the contract or Statement of Work dictate when payments are made, such as upon completion of a task or by periodic amounts. Contractors are not paid by payroll staff in most businesses.