Human Resource Law - Memo - Research Paper Example

Anderson Cost Club Store fired the employees because of the work place circumstances and not due to discrimination. An employer can terminate a worker for a valid reason, bad reason or without a reason if the worker was employed at-will. Additionally, people employed at-will have a right to quit any time without a reason. Consequently, Cost Club has the right to fire employees without giving reasons. The act also forbids employers from dismissing any individuals because they reported the organization’s unlawful actions.

However, in this case, the organization did not engage in any unlawful act. The employer had the right to choose the employee to fire because he knew the most productive workers better than the regulators or judges (Ford, 2008). Message 2: Regional CEO’s Question about Reducing Employee Costs. Autonomous contractors, temporary workers, and employees are different kinds of workers, and organizations should acknowledge their dissimilarities. This is because knowing the distinction will help the employers to establish the initial hiring processes and avoid the expensive legal consequences.

Independent contractors are different from other employers because they work under their separate corporate brands and have their own workforces. Additionally, they keep different financial records and they can publicly market their services. The contractors do not operate according to the standard business hours; they set their own working hours. Moreover, they can work for several organizations and submit invoices for every completed work. However, employees perform duties according to the organization’s requirements and they have to work under the organization’s schedule.

Additionally, they must undergo relevant training before working for an organization. Employees must work for one employer, and they do not keep separate financial records. Most organizations prefer independent contractors because they have many advantages over employees. The organizations that rely on the contractors have lower labor expenses and liabilities. Additionally, the use of independent contractors enhances flexibility in hiring and firing (Small Business Administration, 2011). Temporary workers are the people working for agencies who replace workers in organizations.

Such workers are highly skilled and they work for organizations whenever they have crucial projects or deadlines. They should only work on short-term assignments that last for a maximum of 90 days. These types of workers can reduce the organization’s expenses because their pays are usually lower than those of the employees and independent contractors (Small Business Administration, 2011). Incorrect categorization of workers may result in severe legal penalties. An organization will be required to pay the contractors and temporary workers all the wages they would get as outlined in the Fair Labor Standards Act if it treats them as employees.

The wages should be inclusive of overtime and minimum wages. Furthermore, the organization will have to reimburse all the taxes and fines for federal taxes, Medicare, and unemployment. If the misclassified workers were injured while working for the organization, they will have to receive compensation. Additionally, the organization will have to give the misclassified individuals benefits such as health