employee business relationships

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Introduction to employer-employee, principal-agent, and employer-independent contractor relationships

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Page 1: Employee business relationships

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Page 2: Employee business relationships

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I am not a lawyer

• I am a high school teacher trying to introduce employee relations to teenagers.

• If you discover anything dreadfully wrong here, kindly send me a note.

• Thanks.

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Business Relationships

(about 75 quick slides)

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent3. Employer-Independent Contractor

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Business Relationships1. Master-Servant (“Employer-Employee”)

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Master-Servant Business Relationship

The old-fashioned namefor the

Employer-Employeebusiness relationship.

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Employer-Employee Relationship

Employer: the owner or boss.

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Employer-Employee

Relationship

Employer: can hire and fire.

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Employer-Employee RelationshipEmployer cannot fire an employee because of

• Race• Color• Religion• Gender• National origin

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Employer-Employee RelationshipEmployer cannot fire an employee who exercises their rights, such as • filing a discrimination

complaint with a governmental agency• filing for worker's

compensation benefits

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Employer-Employee RelationshipEmployer can fire an employee for:

• misappropriating funds• being unfaithful to his or her

employer's interests• refusing to perform legal

services that were agreed upon• being habitually late or

absent

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Employer-Employee Relationship

Employee: anyone who works for someone else, with or without pay.

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Employer-Employee Relationship

Employee: Tasks are performed under the direction and control of the employer.

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Employer-Employee RelationshipEmployee: no authority to act in his or her employer's place or outside their authority (an employee is not like an agent).

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Employer-Employee RelationshipAn employee has the obligation to be honest and faithful in the performance of duties.

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Employer-Employee RelationshipAn employee cannot be required to perform illegal tasks such as committing perjury or handling stolen property.

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Employer-Employee RelationshipBy Federal and state law, an employee is entitled to:

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Employer-Employee RelationshipBy Federal and state law, an employee is entitled to:•minimum wages

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Employer-Employee RelationshipBy Federal and state law, an employee is entitled to:•minimum wages•maximum hours

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Employer-Employee RelationshipBy Federal and state law, an employee is entitled to:•minimum wages•maximum hours• overtime pay

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Employer-Employee RelationshipBy Federal and state law, an employee is entitled to:•minimum wages•maximum hours• overtime pay• time off for

religious observances

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Employer-Employee RelationshipBy Federal and state law, an employee is entitled to:• minimum wages• maximum hours• overtime pay• time off for

religious observances• a safe work

environment

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Special laws affect employees under 18 years old…

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Information about employee law for people under 18:

www.YouthRules.DOL.gov

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Employees under 18 years oldmust have a work permit

(including minors employed by parents)

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Employees under 18 years oldmust have a work permit

(including minors employed by parents)

Get a work permitfrom the counseling office at Florin High School

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Work permits are required year-round.

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Employees under 18 years oldmust meet mandatory

school attendance laws.

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No school No work

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Work permits must be…

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Work permits must be…

renewed

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Work permits must be renewedat the start of each new school year

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Work permits must be renewedat the start of each new school year and

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Work permits must be renewedat the start of each new school year

at the time the minor obtains a new job.and

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Work permits are not required for employees under 18 engaged in the

following types of employment:

• Occasional odd jobs at a private home.• Self-employment. • Agricultural or domestic work on property owned,

operated or controlled by the minor’s parents.

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Employees under 18—WagesIf an employee reports to work but is not given any work and sent home, he/she must be paid a minimum of two (2) hours work.

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Employees under 18—WagesIf an employee is asked not to clock in, he/she is free to leave.

He/she cannot be required to wait without being paid.

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Uniforms for employees under 18When uniforms are required by the employer, uniforms must be provided by the employer.

Uniforms include apparel and/or accessories of distinctive color or design (i.e., company name imprinted on hat, shirt, etc.).

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Hours Minors Allowed To WorkAges 14-15School in Session3 hours maximum per day, M-F 8 hours maximum per day, Sat & Sun 18 hours total per week 7:00 a.m. – 7:00 p.m., any day of week

Off-Track8 hours maximum daily, any day of week 40 hours total per week 7:00 a.m. – 9:00 p.m., Memorial Day to Labor Day

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Hours Minors Allowed To WorkAges 16-17School in Session4 hours maximum per day, M – Th 8 hours maximum per day, Fri – Sun 20 hours total per week 5:00 a.m. – 10:00 p.m. 5:00 a.m. – 12:30 a.m. (if no school next day)

Off-Track8 hours maximum daily, any day of week 48 hours total per week 5:00 a.m. – 12:30 a.m., any day of week

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Minors under 16 are prohibited by the state and federal law to work in these areas:

• In the area of moving machinery or equipment • Selling or serving alcoholic beverages • Building or construction work of any kind • Delivering goods from or operating any motor

vehicle • Pool or billiard room • In the area of explosives • Selling to passing motorists, e.g., newspapers,

candy, flowers, etc.

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Minors under 18 are prohibited by the state and federal law to work in the following areas:

• Explosives • Motor vehicle driving • Mining • Logging and sawmilling • Power-driven woodworking machines • Radiation exposure • Power-driven hoists/forklifts • Power-driven metal forming, punching, and

shearing machines

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Minors under 18 are prohibited by the state and federal law to work in the following areas:

• Power-driven meat slicing/processing machines and meat slaughtering

• Power baking machines • Power-driven paper products/paper-baling machines • Manufacturing brick, tile products • Power saws and shears • Wrecking, demolition • Roofing • Excavation operation

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent

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Business Relationships2. Principal-Agent

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Business Relationships2. Principal-Agent

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Business Relationships2. Principal-Agent

This is like having a lawyer work for you.

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Business Relationships2. Principal-Agent

You are the “principal”

Your lawyer is the “agent”

Agent Principal

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Business Relationships2. Principal-Agent

The agent works for the principal.

Agent Principal

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Business Relationships2. Principal-Agent

The agent represents, advises, and often speaks for the principal.

Agent Principal

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Business Relationships2. Principal-Agent “I will let my

agent speak for me.”

AgentPrincipal

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Business Relationships2. Principal-Agent

“I will let my agent speak for me.”

Agent

Principal

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Business Relationships

2. Principal-Agent

A sports agent may speak for his principal.

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Business Relationships

2. Principal-Agent

A sports agent may negotiate for his principal.

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Business Relationships

2. Principal-Agent

A sports agent may schedule appearances for his principal.

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Business Relationships

2. Principal-Agent

A real estate agent might negotiate a price for their principal.

“We will let our agent speak for us.”

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Business Relationships

2. Principal-Agent

A musician's agent might rent an auditorium for their principal.

“I will let my agent negotiate the price of the auditorium for me.”

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Business Relationships

2. Principal-Agent

Careful!A life insurance agent represents the life insurance company, not you.

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Business Relationships

2. Principal-Agent

If a principal thinks their agent is not doing a good job, they can fire their agent.

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Business Relationships2. Principal-Agent

The principal must trust the agent.

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Business Relationships

2. Principal-Agent

If the agent tells others that the principal will rent the auditorium for $3000, the principal cannot rescind the deal.

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Business Relationships2. Principal-Agent

The agent has a fiduciary duty to the principal. Agent Principal

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent3. Employer-Independent Contractor

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Business Relationships1. Master-Servant (“Employer-Employee”)

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent

Agent Principal

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent3. Employer-Independent Contractor

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent3. Employer-Independent Contractor

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Business Relationships3. Employer-Independent Contractor

A “Mary Kay” representative is not an employee of the “Mary Kay” company.

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Business Relationships3. Employer-Independent Contractor

Each “Mary Kay” representative is an independent contractor running their own business.

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Employee or Independent Contractor?Independent contractors retain control over:• their schedule• number of hours worked• jobs accepted• performance of their job

Employees don’t

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Employer-Independent Contractor

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Employer-Independent ContractorMost hair stylists are not employees of the salon. They pay rent to use the chair. They are independent contractors.

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Employer-Independent ContractorA lawyer might hire the same private investigator many many times, but the private investigator is not an employee of the lawyer. She is an independent contractor.

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A small college might hire a gardener to maintain the campus, but that doesn’t mean the gardener is an employee of the college.

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Independent Contractor

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Business Relationships1. Master-Servant (“Employer-Employee”)2. Principal-Agent3. Employer-Independent Contractor

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