Employee Benefits Microsoft Offers a Term Paper

Total Length: 630 words ( 2 double-spaced pages)

Total Sources: 2

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Despite offering such a comprehensive benefits plan, Microsoft has not always been in compliance with laws governing these plans. In the case Vizcaino v. Microsoft Corporation the court ruled that the company denied some of its workers benefits under its Savings plus 401(k) plan (SPP) and Employee Stock Purchase Plan (ESPP) based on the mistaken assumption that they were independent contractors and therefore not eligible for its benefits.

Even though these workers were originally hired on the basis of being independent contractors, for tax purposes the IRS reclassified them as being Microsoft employees. Due to this reclassification the workers requested eligibility for the SPP and ESPP benefits, of which they were subsequently denied. After initially losing the case at the District Court level the plaintiffs appealed, which led to the Oct. 3, 1996 Ninth Circuit Court panel ruling in favor of the plaintiffs.

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Microsoft requested for this ruling to be reviewed by the Ninth Circuit, which led to a reaffirmation of the panel's earlier decision.

In coming to its decision, the court initially studied the agreements the workers signed with Microsoft in which it was stated that they were independent contractors. Through its review the court found that the workers could not be considered independent contractors while working for Microsoft. In addition the court found that by law eligibility in the SPP plan could be determined if workers were paid from Microsoft's United States accounts, which they were. As for the ESPP plan the court found that the company always offered it to all employees, and that these particular workers had accepted it earlier......

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Latest APA Format (6th edition)

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"Employee Benefits Microsoft Offers A" (2007, April 22) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/employee-benefits-microsoft-offers-38361

Latest MLA Format (8th edition)

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"Employee Benefits Microsoft Offers A" 22 April 2007. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/employee-benefits-microsoft-offers-38361>

Latest Chicago Format (16th edition)

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"Employee Benefits Microsoft Offers A", 22 April 2007, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/employee-benefits-microsoft-offers-38361