Employment Law One of the Case Study

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The combination of these elements is showing that she is an independent contractor. ("What is a 1099 Form," 2012) (Hill, 2008)

What are some potential legal implications in the case? What should the utility do to rectify any wrongs in this situation?

There are no legal implications for the firm. This is because they can demonstrate that Karen is an independent contractor. To address any kind of wrongs, the company could offer her some kind of severance pay for ending the contract. Prior to her receiving anything is when Karen would have to agree to never engage in any litigation against the firm in the future. This will protect the company's best interests.

Draft a sample policy for limiting the use of independent contractors that will help avoid issues like this in the future.

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To avoid these kinds of challenges in the future, the firm should have all employees sign their contracts. Then verbally and in writing, state to the individual at select points (such as periodic reviews) that they are an independent contractor. This is when they will talk about how they are aware of this status (by signing an affidavit). If this kind of policy is utilized, it will make it difficult for an individual to claim that they are an employee. Instead, the evidence will show that this person is an independent contractor. Once this has been demonstrated, is when there will be no legal avenues for them to pursue......

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