Description

LSB4423 timed writing assignment 1

Instructions

In this essay, you will answer the question below. Each sub-part of the question should be answered thoroughly. When finished drafting your answers to the questions, please save/export as a PDF and upload the PDF to the appropriate dropbox folder.

You may use any sources that you want. All I ask is that, if you use any source other than lecture notes, you cite it. You may use any citation form that adequately identifies the source.

The OSU Academic Integrity policy applies to this assignment. This policy states the following.

Academic Integrity

Oklahoma State University is committed to the maintenance of the highest standards of integrity and ethical conduct of its members. This level of ethical behavior and integrity will be maintained in this course. Participating in a behavior that violates academic integrity (e.g., unauthorized collaboration, plagiarism, multiple submissions, cheating on examinations, fabricating information, helping another person cheat, unauthorized advance access to examinations, altering or destroying the work of others, and fraudulently altering academic records) will result in your being sanctioned.

Violations may subject you to disciplinary action including the following: receiving a failing grade on an assignment, examination or course, receiving a notation of a violation of academic integrity on your transcript (F!), and being suspended from the University. You have the right to appeal the charge. Contact the Office of Academic Affairs, 101 Whitehurst, 405-744-5627. You may find further information online.

Facts

Situation

Lightning Parcel Service (“Lightning”) is based in the Oklahoma City regional area. Lightning focuses its efforts on delivering products to home consumers and small businesses. Lightning has a need to hire drivers for its delivery trucks. In an effort to reduce costs, Lightning recently adopted an independent contractor model. Under this model, rather than hiring drivers as employees, Lightning will contract with drivers as independent contractors. The independent contractors will be in business for themselves.

Lightning has developed a lengthy contract that it asks drivers to sign. The contract contains the following clauses.

1. The contract contains the express sentence: “Driver acknowledges that he or she is an independent contractor and not an employee.”
2. Lightning requires that the drivers go through the standard Lightning training program before being allowed to deliver packages. The drivers are not, however, paid for their time while going through the training program.
3. The drivers must use Lightning uniforms but must purchase the uniforms themselves.
4. Lightning permits the drivers to purchase their own delivery trucks. If a driver chooses not to furnish his own vehicle, Lightning will rent the driver a truck at a fixed weekly rate. In any event, Lightning requires that the trucks be painted using Lightning colors and logos.
5. Lightning provides the routes that the drivers should drive each day. Lightning does not oversee the drivers to determine whether they drove the suggested route.
6. Lightning drivers are free to hire someone else to drive their routes as long as the substitute driver maintains the same route.
7. Drivers must check in with Lightning periodically throughout the day to see if Lightning has any additional deliveries to make.
8. Lightning allows the drivers to use the trucks on their days off for personal deliveries, as long as the driver covers up the Lightning logo.
9. Lightning drivers may sell their routes to other drivers.

Complication

Lightning hires a new general counsel (the top legal officer), Roseanne Park. Shortly after beginning work, Park becomes aware of the independent contractor model. Because the Department of Labor announced a misclassification initiative, Park is concerned about potential violations of the federal wage and hour laws. She is not sure about worker classification issues, but has heard that you did very well in your employment class.

Question

You should answer this overall question: Under the facts as given, are the Lightning drivers employees or independent contractors?

Using the economic realities test, determine whether or not the workers are employees or independent contractors. Your answer will require you to explain why the economic realities test is proper under the circumstances. In your answer, list the elements of the test, analyze the facts in light of the elements, and draw a conclusion. You should evaluate both sides of the question, explaining both arguments and counter-arguments.