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Tom and Mark tell Susan that they wish to hire several workers but are uncertain as to whether or not these workers would legally be considered employees or independent contractors. Susan asks Tom and Mark to describe the nature of each position, the hours worked, and the control they exercise over each worker: Jack Walker, Grant Worthington, and Phil Costello are first-rate salespeople who have extensive experience in selling men's clothing. They would each work 40 hours per week and be paid a base salary plus commission. The salesmen would be prohibited from working elsewhere. They would be required to wear suits, and their work schedules would be set by L&S. Paid vacation and sick leave would be given as well. Jack, Grant, and Phil would have no discretion in deciding whether to attend to a customer's needs, and they would have no authority to hire assistants. Nancy Cooke is being employed as an administrative assistant. Her duties will include bookkeeping, ordering, and typing, as well as telephone reception. She will work from 10:00 a.m. to 6:00 p.m., Monday through Friday. Martha Winslow, a seamstress by trade, is being hired to perform the necessary alterations on the clothing. She would be available for appointments on Tuesdays and Thursdays from 6:00 p.m. to 8:00 p.m. and on Saturday afternoons from 2:00 p.m. to 4:00 p.m. Martha would set her own hours in addition to these, depending on the workload. Martha has set a fee schedule covering the various types of alterations performed on a per item basis. Stephanie Russo is a Web page design specialist with a degree in graphic arts. She is being trained to create a Web page for L&S. After that, she will act as a consultant for purposes of Web advertising. Lucy Johnson is being hired to clean the store after hours. She will set her own schedule, and she estimates working 1 to 2 hours per night. Stephanie is being paid on a one-time fee basis for the Web design work and then will be retained on an hourly basis as a consultant. Lucy is being paid a flat fee per night, regardless of the length of time it takes for her to clean the store. What would be the conclusion to this question?

Operation Management, Management Studies

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