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Week

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

  contract

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