3 ms·
I thought one of the most interesting parts of this article was the section discussing the tests used to determine if a person is considered an employee. Quoti
by prirun 4y ago
I thought one of the most interesting parts of this article was the section discussing the tests used to determine if a person is considered an employee. Quoting from the story:
-----
To determine if a worker, no matter how labeled, is actually an independent contractor or an employee, courts have fashioned an “economic realities test.”
In Pendergraft’s case, the arbitrator, Deborah Hankinson, a former justice on the Supreme Court of Texas, weighed the test’s six factors, checking off those that suggested Pendergraft had been an Arise employee. Did Arise exercise significant control over Pendergraft? Check. “Arise closely monitored all aspects of her work,” Hankinson wrote. Were agents like Pendergraft vital to Arise’s business? Check. “Without CSPs, Arise would have no service to sell,” the arbitrator wrote. Was Pendergraft’s work the kind that required no specialized skill? Check. In the end, Hankinson checked five of the six factors — and the sixth, she determined, could go either way. “Ms. Pendergraft was an employee of Arise,” the arbitrator concluded.
In her ruling issued in February 2015, Hankinson found that Arise, as Pendergraft’s employer, had been required by federal law to pay her the minimum wage of $7.25 an hour. The company also had to pay for her training time and equipment expenses.
Added up, that came to $5,841.82.
But that wasn’t all. Employers who violate the Fair Labor Standards Act face lower damages if they can show they had reason to believe they were in the right. An employer, for example, could present evidence that it had consulted labor law experts and followed their advice. Since Arise made no such showing, Hankinson doubled the damages, ordering Arise to pay Pendergraft $11,683.64.
-----