Is my worker an Employee or can he be considered an Independent Contractor

This hub identifies and analyzes the polices at a sample company (Haz-Mat). This paper also addresses the treatment of the following:
a. “Regular” employees versus temporaries or independent contractors
b. Exempt employees versus non-exempt employees

Additionally, this hub includes a discussion of how the employer of a team member responds to North Carolina's state law(s) relating to employment at will and the manner in which it assures that any exceptions to employment at will existing in North Carolina are addressed.

Employer- Employee Relations -
What makes employees different than independent Contractors

Haz-Mat Environmental Services is a growing force in the industrial/environmental services industry. This organization is a small, growing company that employs only 72 workers. The upper-level management consists of two positions, the owner and the operations manager. This company is very young, though it has aspirations of becoming one of the most dominant environmental services in the region (Haz-Mat, 2009). Company policies are presently in place, but these policies must be consistently modified to accommodate changing work force laws, both federal and state. Haz-Mat’s policies are listed in an employee handbook, which is given to employees during their first week of work. The handbook, which is only 28 pages long, will grow as the company grows, as will the policies and expectations.

Types of Workers - Independent Contractors and Hourly Employees

The environmental services industry is very competitive, and the organizations within this field of work offer similar services. As a result, only a few differences, including price, customer service, and style, differentiate Haz-Mat from its competitors. Environmental services include, but are not limited to, confined space entry, emergency spill response, the collection and recycling of petroleum hydrocarbons, non-hazardous waste collection and solidification, and hazardous waste collection and disposal. This job can be very dangerous and potentially life threatening. Because of this, proper instruction and employee training are essential. Whether the worker is an independent contractor, temp-to-hire, or employee, the safety guidelines must be followed or the workers well-being may be compromised. Since working with hazardous materials is dangerous, Has-Mat Environmental Services must find capable employees willing to accept the unfavorable conditions, in other words, the employee must be willing to enter into this employment agreement (Bennet-Alexander and Hartman, 2007).

Independent Contractors

The work employees must perform varies from day-to-day, so employees must possess a variety of skills. At times, the operation of heavy equipment is necessary to complete projects. Because few of the employees at Haz-Mat Environmental Services can operate heavy machinery, the company sometimes finds it necessary to hire independent contractors to complete this type of work. An independent contractor is defined as a worker who is “free from the control of the client, able to exercise his or her judgment as to the manner and methods to accomplish the end-result, and who is responsible for the end-result only under the terms of the contract” (Business Dictionary, 2009). In order to consider its heavy machinery operators independent contractors, Haz-Mat gives the workers a time-frame to complete a specific task within, then leaves the manner and method in which that project will be completed up to the individual worker.

Hourly Employee

By contrast, Haz Mat employees must report to work by 7:00 am. They meet in the office each morning to collect the necessary paperwork and instructions for daily tasks. Individual contractors do not have to meet at the office as the employees do. Another difference is that individual contractors are used on an “as-needed” basis, while employees have a weekly schedule. During the process of completing a project, Haz-Mat will set aside a block of time for the individual contractor to come and complete a specific task. However, if the contractor does not complete the work within this time frame, consequences may occur. These consequences may include a reduced payment or termination of the contract. Haz-Mat Environmental Services rarely uses the services of temp-to-hire agencies. The hourly employees of the organization handle the bulk of the work.

Non-Exempt Workers

Haz-Mat Environmental Services only employs non-exempt workers. Non-exempt employees are defined as “employees receive hourly wages; they are subject to wage and hour laws, i.e. overtime pay; usually applies to non-professional employees (Business Dictionary, 2009). Not only are non-exempt workers to be paid for hours worked, but they also must be paid for required training and meetings they attend. Non-exempt, or hourly workers, are also paid for work done before and after regular business hours (OSR, 2009). An example of this would be when Haz-Mat calls in its emergency response team. These employees are on call 24 hours a day, 7 days a week in case a chemical spill occurs outside of normal business hours. These employees must be paid for all time worked, whether during hours scheduled or additional hours worked.

Employment-At-Will

Haz-Mat Environmental is a privately owned organization based in North Carolina, which is employment-at-will state. Therefore, Haz-Mat recognizes and follows the employment-at-will law (Haz-Mat, 2009). The employment-at-will law is a state regulation that says “the employment relationship is not legally bound by any agreement, written or verbal, and any such agreement can be terminated by either party at any time. If the employer is the one that terminates the employment agreement, that particular reason cannot be discriminatory (race, sex, age, gender, disability), as this is against the law (Bennett-Alexander and Hartman, 2007). The employment-at-will policies are stated in Haz-Mat’s Employee Handbook; all employees are to read and acknowledge comprehension of these policies. A page in the handbook is designated for the signature of the employee. Once this page is signed, the Haz-Mat can be confident that employees understand and are willing to abide by the guidelines established. Although Haz-Mat is an at-will employer, the owner and operations manager use termination as a last resort. Employees are offered opportunities to correct undesirable behavior unless the policy violation is a situation that the employee handbook cites as grounds for immediate termination.

Laws Govern Worker Categorization

Many rules and laws help to govern organizations of every size. Currently, Haz-Mat Environmental Services is categorized as a small business, but the company is striving toward large-scale growth and expansion. The growth of this company is possible because of the employees willing to enter into, and maintain, the agreement given by the employer. Each employee understands that Haz-Mat is an employment at will company. Even so, management makes it a point to reassure employees that termination will be given only after an explanation of the policy violation, even though the employment-at-will law says that this is not necessary. The policies and procedures that must be followed are either written in the employee handbook, or are verbally communicated through the owner or operations manager.

References
Bennett-Alexander, D, & Hartman, L (2007). Employment law for business. New York, NY:
McGraw-Hill/Irwin.
Business Dictionary, (2009). Definitions. Retrieved September 2, 2009, from
BusinessDictionary.com Web site: http://www.businessdictionary.com/
Haz-Mat. (2009). Haz-Mat Employee Handbook
OSR, (2009). Exempt/Non-Exempt. Retrieved September 2, 2009, from Office of School
Readiness Web site: http://www.osr.nc.gov/_pdf/ExemptNotExempt.pdf