Allstate Not Only Knows Term Paper

Pages: 12 (3024 words)  ·  Bibliography Sources: 0  ·  File: .docx  ·  Level: College Senior  ·  Topic: Careers

¶ … Allstate not only knows that they have the right to use independent contractors, they also seem to know all of the benefits of doing so. In contrast they also seem to be aware of the areas that will cause the company grief and are working to eliminate those areas while maintaining the things that benefit them. It is possible that the company does not know what is and is not allowed when it comes to company employees opposed to independent contractors.

The requiring the agents to only write Allstate policies first, and not use any other company unless all state refuses to underwrite the policy, actually crosses the legal line about employees vs. contractors.

The company is correct in that it does not have to pay sick leave, taxes, or other benefits that it would have to contribute to in the case of employees.

The cheaters (and naive) misclassify workers as independent contractors, but still attempt to control them as employees. In doing so, they reap the benefits of both worlds, while depriving independent contractors of the very reason they became independent contractors in the first place: to be their own bosses (Your Rights as an Independent Contractor (http://jobsearchtech.about.com/od/laborlaws/l/aa121800.htm)."

Independent contractors cannot be told how to do their work, outside of parameters on the specific projects that are contracted for. This means that Allstate's desire to limit the contractors to only sell and write Allstate policies, is illegal from the standpoint of independent contractors.

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If the company is requiring the agent to pay rent, office supply costs and administrative costs, it wants the agent to be an independent contractor not an employee.

In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered."

Term Paper on Allstate Not Only Knows That They Have Assignment

What Allstate is asking agents to agree to actually falls under the category of statutory employee. It means that the company can insist that all policies be written through Allstate but it also makes the agent an employee and not fully independent. (Independent Contractors vs. Employees (http://www.irs.gov/businesses/small/article/0,id=99921,00.html)

Requiring the agent to pay for any salaries of assistants, pay rent and provide their own office supplies all indicate a desire not to be the employer of that person. This is a classic example of a company desire to reap all the benefits of having independent contractors, while wanting to control the work that agent does. The company cannot have both and will have to choose one or the other, or face legal troubles in the future.

Labor laws http://jobsearchtech.about.com/od/laborlaws/l/aa121800_2.htm

Your Rights as an Independent Contractor

http://jobsearchtech.about.com/od/laborlaws/l/aa121800.htm

Independent Contractors vs. Employees

http://www.irs.gov/businesses/small/article/0,id=99921,00.html

The ability to terminate this employee would be more clear cut had the handbook already been designed and signed by him in the past, however, it is perfectly acceptable to terminate him at this point because of the time frames involved.

The employee was hired four years ago. When he was hired he was given a two-year employment contract that stated he would not be terminated for anything other than unacceptable performance. At the time he was hired there were many open door and open ended policies in the company that included unlimited sick leave if needed.

As a small business owner, you can help keep yourself out of legal hot water by clearly spelling out on paper what you expect of the people who work for you. For the most part, you do not need to create a separate employment agreement for each employee on your staff. An employee handbook that details your company's policies should suffice (How to Create an Effective Employee Handbook (http://www10.americanexpress.com/sif/cda/page/0,1641,15681,00.asp)."

In the case of this particular employee the handbook has been designed and put into affect two years after the original employee contract expired.

This means that the employee can be expected to sign it and comply with its elements or the company has a right to terminate the employee for failure to comply. While this is the case, the fact that he has not signed it before taking the day off without permission may present problems if he is terminated without a warning first.

The best thing to do in this particular situation is to provide the employee with a written notice that if he refuses to comply with the rules and regulations in the handbook then he will in fact be terminated without further notice.

Having the employee sign the book protects the company from future litigation if the employee refuses to comply with the handbook regulations. If the employee does not sign it he or she can later claim that she had no idea what she recently did was against the rules. His or her signature indicates they have read the rules and regulations and agree to abide by them.

In this case, the employee can be terminated for refusal to sign because his two-year contract expired two years ago and he has been an at will employee since then.

The last step in the discipline procedure is termination, a most difficult and sensitive process. Most employment is based on mutual consent; both the employee and the organization have the right to terminate employment at will, with or without cause, at any time. Employment at will, the employer's right to fire without documented proof or reason, has eroded as workers' job rights have gained legal status. However, an employee can be terminated if the supervisor has a valid case (Termination

http://ollie.dcccd.edu/mgmt1374/book_contents/5controlling/termg/terminate.htm."

Refusal to sign a handbook that details the rules of the company is a valid case, but firing him before he signs or is warned of termination for refusal to sign, may cause time and money for the company to defend a suit later. It is better to get him to sign it before he is fired.

Guide to Understanding Employment at Will

http://www.centralkylawyers.com/labor.asp#2

Termination

http://ollie.dcccd.edu/mgmt1374/book_contents/5controlling/termg/terminate.htm

How to Create an Effective Employee Handbook http://www10.americanexpress.com/sif/cda/page/0,1641,15681,00.asp

In the case of an employee who is afraid of the legal ramifications of performing certain duties it gets rather sticky and complicated when it comes to firing that person (Factor #3: The Longer You Wait... The Harder it Is to Terminate the Employee

Termination guide (http://www.employeeterminationguidebook.com/).

In this case, the employee is extremely high up in the company and could feasibly be held responsible for any activity that was later deemed illegal.

The news has been filled recently with stories about companies that have allowed high ranking employees to take the fall for the company cover ups.

This particular employee has voiced concerns about the legality of the planned restructuring. The president has produced a letter from an attorney stating the plan is legal.

The employee has the right to refuse but with the letter from the attorney the company has the right to fire the employee if he refuses to comply with the new policy. At that point it would be feasible that in the event the plan was found to be illegal it would be the president and the attorney who backed the plan who would be found guilty. The employee who questioned it did the best he could do when he questioned the legality of it.

Once he saw the letter he was obligated to go along with the plan.

One liability that the company faces is after terminating the employee, if the plan for restructuring is in fact found to be illegal then the company may find itself defending against a wrongful termination suit.

In addition, if the employee is fired, and goes public with the fact that he was not comfortable with a restructuring plan that he felt gave a false impression of success the company will have to deal with the publicity. That publicity may cause such a drop in stock confidence that it can cost more than the severance pay the employee ended up not getting.

Factor #3: The Longer You Wait... The Harder it Is to Terminate the Employee

Termination guide (http://www.employeeterminationguidebook.com/)

Termination guide

http://www.employeeterminationguidebook.com/

Factor #3: The Longer You Wait... The Harder it Is to Terminate the Employee

Termination guide http://www.employeeterminationguidebook.com/

In the case of sexual harassment the law is very clear about the ramifications. In this case firing the employee at this point may bring on a law suit that the company could not defend itself against (CALIFORNIA SEXUAL HARASSMENT (http://www.californiadiscriminationlaw.com/California-Sexual-Harassment-Law.html).

Many states have laws that dictate the minute harassment is reported it has to be dealt with. The employee here has notified the company that a fellow employee has been making suggestive comments to her during work hours.

Other employees have verified this fact to the management.

What at first seems to be information against the employee, at second glance it would actually help her case if she were to file a suit for being fired because she told about the harassment? The employees who verified she is indeed having suggestive remarks made to her by this male employee have also reported that they do not like her. This would provide… [END OF PREVIEW] . . . READ MORE

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