5. (TCO E) While working as a carpenter with his own business for a furniture company, Jack was injured on the job and filed a worker’s compensation claim which listed the furniture company as his employer. Based upon the foregoing, will Jack be deemed an employee or an independent contractor? Analyze the fact pattern in conjunction with the legal factors that impact the employee versus independent contractor determination. Determine and explain the implications of this determination on Jack’s worker’s compensation claim. Incorporate applicable law as you analyze and interpret the scenario in conjunction with the legal elements of the claims. (Points : 30)
6. (TCO F) Retirees were employed by White Farms while the company was an affiliate of the White Motor Corporation. The dispute concerned the White Motor Corporation Insurance Plan for Salaried Employees, a non-funded, noncontributory benefit plan that provided life, health, and welfare insurance, prescription drugs, hearing aid benefits, and dental care to retirees and their eligible dependents. White Motor employees periodically received booklets describing their benefits under these plans.
The 1980 booklet described insurance provided and carried the explicit disclaimer that it was “not the contract of insurance.” The booklet differentiated between different categories of salaried employees and appeared to have been prepared for distribution to both active and retired employees.
The 1985 booklet was addressed specifically to retired employees. Much of the information in the booklet made no distinction between the Welfare Benefit Plan and the Pension Plan, and its summary of an alleged cancellation clause referred to both plans.
“The Company fully intends to continue your plans indefinitely. However, the Company does reserve the right to change the Plans, and, if necessary, to discontinue them. If it is necessary to discontinue the Pension Plan, the assets of the Pension Fund will be used to provide benefits according to the Plan document.”
No similar clause appeared in the 1980booklet.
While the company was undergoing court supervised reorganization under Chapter 11 of the Bankruptcy Code, it decided to discontinue its noncontributory insurance coverage for its retired employees.
On the basis of the facts presented, assess whether the company is free to discontinue its noncontributory insurance coverage for its retired employees. Explain your conclusion and use applicable law to support your response. (Points : 30)
7. (TCO G) A hiring manager did not properly verify I9 documentation for a new employee. In fact, the new hire’s social security card was a forgery, and the INS assessed a fine against the employer claiming that it knew or should have known that the card was false. Determine whether this company is liable under the IRCA. Identify and integrate applicable law and statutory authority to provide validity for your response. (Points : 30)
8. (TCO H) Hal’s security company hired three temporary workers through an outside temporary employment agency called Deb’s Temps. Hal didn’t ask if background checks had been done on the employees. Deb did not check the criminal records for the workers hired by Hal. One of the workers had been convicted of burglary and had just recently been released from prison. While working for Hal, he burglarized the owner of the home. Determine who the owner should sue and the legal basis for the suit. Assess the likelihood of the owner prevailing. Analyze what should have been done, from the employer standpoint, to avoid the potential for liability. Integrate applicable law into your response. (Points : 30)
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