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When Business Takes an Aggressive Position, Essay Example

Pages: 1

Words: 285

Essay

The ethical issues which become pertinent to the business classifying the employee as an independent contractor are related to the denial of the appropriate benefits to the employee. Employees who are paid hourly wages, receive their operating instructions from the business and are essential to the operation of the business should receive the status of employees. The status of an employee implies that taxes are paid, social security taxes are accrued in the employee insurance account and the worker has the right to collect compensation for on the job injuries or unemployment compensation in the event of losing their employment (Emerson 609).

The employee ends up in an unfavorable position when the business misclassified their status as employees under that of independent contractors. . In the situation where an independent contractor is paid an hourly salary becomes unemployed an wishes to collect unemployment benefits, the burden of proof falls upon the business in proving the claimant was not an employee. In the event of the worker’s being injured on the job while being treated as if they were an independent contractor, the worker could create complication for the business with the authorities if the worker were to try to acquire benefits which the worker had been entitled. This is considering that the workers status as an employee had not been correctly classified by the employer (Emerson 609).

Conclusion

It is better for the employer to contribute the benefits to the worker for which the worker is entitled instead of taking aggressive measures to detail the employee as an independent contractor when they are in the classification of employee. In this manner, the business may avoid audits and sanctions.

Works Cited

Emerson, Robert W. Business Law. Hauppauge, NY: Barron’s Educational Series.

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