C233 Employment Law Questions With
Correct Detailed Answers.
Supremacy Clause - ANSWER- The Constitution mandates that the Constitution,
federal law, treaties, and federal regulations are the highest laws of the land and have
priority over state law
Independent Contractor - ANSWER- the employer is not subject to wage and hour laws,
anti-discrimination laws, federal employee tax withholdings, or vicarious liability law. the
IRS has a keen interest in ensuring employers are not improperly classifying employees
when they are really employees, and the tax penalties for improper classification are
heavy.
three different tests commonly used to determine if a worker is an employee or
independent contractor: - ANSWER- 1. The common law agency test
2. The economic realities test
3. The IRS 20-factor analysis
Common Law Agency Test - ANSWER- A test used to determine employee status;
though it considers several factors, the most critical is whether the employer has the
right or ability to control the work. ie standards of work hours, grooming, dress, billing
processes, reporting procedures
joint employers - ANSWER- refers to two or more employers who employ the same
individual such as temp agency and business
Covered Employment Agency - ANSWER- An agency that regularly procures
employees for at least one covered employer-subject to employment law regulation.
A labor organization is subject to federal employment law statutes if - ANSWER- It
represents the employees of an employer.
Its membership exceeds a certain level.
It maintains a hiring hall which procures employees for at least one covered employer.
It is engaged in an industry-affecting commerce.
intentional interference with contract - ANSWER- The tort that occurs when someone
intentionally takes an action that will cause a person to breach a contract that he or she
, has with another. perhaps a co-worker or client, pressures the employer to terminate an
employee without cause
Intentional Infliction of Emotional Distress - ANSWER- tort that produces mental
anguish caused by conduct that exceeds all bounds of decency
Montana Wrongful Discharge from Employment Act - ANSWER- The WDEA prohibits
termination for anything other than good cause once an employee has successfully
passed a probationary period and allows for an employee to seek arbitration for a
termination dispute. Covered only for 4 years
Economic Realities Test - ANSWER- A test by which the courts consider whether the
worker is economically dependent on the business or, as a matter of economic fact, is in
business for himself or herself. The deciding point is whether the worker has little
freedom to exit the relationship because he or she is economically dependent on the
business to which he or she renders service.
IRS 20-Factor Test - ANSWER- Set of 20 Factors that the IRS uses to determine
whether workers are employees or independent contractors. see 1:3
How does the constitution affect employment law - ANSWER- The constitution
governed by the 3 branches of government enforce laws for the "welfare" of the people
Common Law - ANSWER- (civil law) a law established by following earlier judicial
decisions; based on precedent and customs
Explain why it is important for an organization to correctly identify which workers are
"employees" versus independent contractors? - ANSWER- The IRS tax penalties for
improper classification are heavy.1
When might a contingent employee (or temporary worker) hired from an employment
agency be considered an employee? - ANSWER- for federal law purposes if he or she
works for a long time for an employer and performs the same work, and in the same
circumstances, as a traditional employee.
What action(s) may require a volunteer to be classified as an employee? - ANSWER- if
their service results in the conferral of benefits such as a pension, group life insurance,
workers' compensation, or access to professional certification
Which members of an organization's leadership are exempt from employee status? -
ANSWER- Partners, corporate officers, directors, and major shareholders
List the factors used to determine whether two or more firms are considered an
integrated enterprise - ANSWER- interrelation between operations, such as sharing
management services, payroll, and office space, shared management, as in having a
common slate of managers, officers, and directors.
Correct Detailed Answers.
Supremacy Clause - ANSWER- The Constitution mandates that the Constitution,
federal law, treaties, and federal regulations are the highest laws of the land and have
priority over state law
Independent Contractor - ANSWER- the employer is not subject to wage and hour laws,
anti-discrimination laws, federal employee tax withholdings, or vicarious liability law. the
IRS has a keen interest in ensuring employers are not improperly classifying employees
when they are really employees, and the tax penalties for improper classification are
heavy.
three different tests commonly used to determine if a worker is an employee or
independent contractor: - ANSWER- 1. The common law agency test
2. The economic realities test
3. The IRS 20-factor analysis
Common Law Agency Test - ANSWER- A test used to determine employee status;
though it considers several factors, the most critical is whether the employer has the
right or ability to control the work. ie standards of work hours, grooming, dress, billing
processes, reporting procedures
joint employers - ANSWER- refers to two or more employers who employ the same
individual such as temp agency and business
Covered Employment Agency - ANSWER- An agency that regularly procures
employees for at least one covered employer-subject to employment law regulation.
A labor organization is subject to federal employment law statutes if - ANSWER- It
represents the employees of an employer.
Its membership exceeds a certain level.
It maintains a hiring hall which procures employees for at least one covered employer.
It is engaged in an industry-affecting commerce.
intentional interference with contract - ANSWER- The tort that occurs when someone
intentionally takes an action that will cause a person to breach a contract that he or she
, has with another. perhaps a co-worker or client, pressures the employer to terminate an
employee without cause
Intentional Infliction of Emotional Distress - ANSWER- tort that produces mental
anguish caused by conduct that exceeds all bounds of decency
Montana Wrongful Discharge from Employment Act - ANSWER- The WDEA prohibits
termination for anything other than good cause once an employee has successfully
passed a probationary period and allows for an employee to seek arbitration for a
termination dispute. Covered only for 4 years
Economic Realities Test - ANSWER- A test by which the courts consider whether the
worker is economically dependent on the business or, as a matter of economic fact, is in
business for himself or herself. The deciding point is whether the worker has little
freedom to exit the relationship because he or she is economically dependent on the
business to which he or she renders service.
IRS 20-Factor Test - ANSWER- Set of 20 Factors that the IRS uses to determine
whether workers are employees or independent contractors. see 1:3
How does the constitution affect employment law - ANSWER- The constitution
governed by the 3 branches of government enforce laws for the "welfare" of the people
Common Law - ANSWER- (civil law) a law established by following earlier judicial
decisions; based on precedent and customs
Explain why it is important for an organization to correctly identify which workers are
"employees" versus independent contractors? - ANSWER- The IRS tax penalties for
improper classification are heavy.1
When might a contingent employee (or temporary worker) hired from an employment
agency be considered an employee? - ANSWER- for federal law purposes if he or she
works for a long time for an employer and performs the same work, and in the same
circumstances, as a traditional employee.
What action(s) may require a volunteer to be classified as an employee? - ANSWER- if
their service results in the conferral of benefits such as a pension, group life insurance,
workers' compensation, or access to professional certification
Which members of an organization's leadership are exempt from employee status? -
ANSWER- Partners, corporate officers, directors, and major shareholders
List the factors used to determine whether two or more firms are considered an
integrated enterprise - ANSWER- interrelation between operations, such as sharing
management services, payroll, and office space, shared management, as in having a
common slate of managers, officers, and directors.
