MGT 434 Week 2 Employer-Employee Contract Paper


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2 Employer-Employee Contract Paper

Little Lamb Company needs an additional programmer for a special project.
The company enters into a contract with Mary to complete this project. Just as
the project is nearing completion, a new need arises for her services. She is
asked to continue with the company to complete the new project. While
completing the new project, the supervisor begins working more closely with
Mary and requires her to use company materials and equipment while adhering to
company work schedules. After two years, economic conditions force the company
to make budget cuts. Mary is asked to leave. Thirty days later, a major
contract is acquired by the company, which reinstates the need for Mary’s
services as a programmer. However, the supervisor chooses to hire his equally
qualified cousin and not offer Mary the opportunity to return.


Answer the following questions based on the scenario:

  • Is Mary an independent contractor or an employee?
    Describe the factors that led to her determination.

  • Has the employer-employee relationship changed over
    the course of time? If so, how?

  • Is Mary’s release legal under the doctrine of
    employment-at-will? Explain why or why not? If not, which of the following
    exceptions to employment-at-will have been violated? Explain why.

    • Breach of public policy

    • Breach of implied
      covenant of good faith and fair dealing

    • Breach of implied

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