Employer/Employee Relations

Essay by angelz2uCollege, UndergraduateA, April 2010

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Employer-Employee Relations

MGT 434

March 15, 2010

Employer-Employee Relations

When an employer decides to start a business, the employer requires employees to perform duties that range from production, selling, organizing, and repairing, etc. After interviewing and hiring, employees are given tasks according to their abilities and personalities, and thus the working relationship begins. These relationships are guided by determination of employee status and the regulations that accompany them. This distinction is important in determining the type of relationship and responsibilities the employer has toward its new hire. According to Bennett-Alexander and Hartman (2007), "The distinction is significant for tax law compliance and categorization, for benefit plans, for cost reduction plans, and for discrimination claims." Furthermore, each organization is also responsible for following all laws and statues that may apply. The purpose of this paper is to identify and analyze policy differences within an organization.

The paper will attempt to address the treatment of hires with differing statuses within the United Parcel Service of America, Inc. Additionally, the paper will cover their applicable state employment laws including at-will employment exceptions.

Employees versus Independent Contractors

UPS, like many similar companies, hires a diverse workforce with varying shifts and constantly changing needs. The cost of employees is very expensive. According to the U.S. Department of Labor Bureau of Labor Statistics, as of December 2009, employee benefits costs represented 29.2% of total compensation costs, with legally required cost accounting for 8.2% (U.S. Department of Labor, 2009).

Temporary Employees

Because of the cost and long term commitment, UPS has used temporary employees. Some of the benefits of temp employees include the cost savings on payroll and administration (Orange Co. Business Journal, 2004), with no long term commitment. This also gives...