Employee & Labor Relations

Case Study directions 

For your complete assignment, write a narrative essay in APA format (minimum 1200 words in the narrative) in which the questions below are addressed. Base the response on scholarly sources; do not simply restate the material in the text and Attend lecture.  Remember to use the third person.  Cite a minimum of
three
scholarly (peer reviewed) articles (at least one minimum for each question below).  Your
textbook
can be one of them. Do not use websites other than the library databases. Cite the sources in APA format with in-text citations, as appropriate. Include a single labeled reference list at the end of the narrative. Please remember that meeting the minimum will not earn full credit.

1. A company sells health insurance policies. The company has a large, independent contractor sales force. Some of its sales agents, usually after a significant period of service, are promoted to the position of sales leader. Sales leaders agree to remain as independent contractors when they are promoted. Sales leaders do little selling of policies; instead, their main responsibilities are recruiting, training, and managing sales agents. The income of sales leaders is mainly derived from overwrite commissions on their subordinates’ sales. The company retains control over the hiring, firing, assignment, and promotion of sales agents. The company determines sales leaders’ territories and does not permit them to sell other insurance products or operate other businesses. Sales leads are distributed by the company, and sales leaders are prohibited from purchasing leads from outside sources. Sales leaders set their own hours and conduct their day-to-day activities largely free from supervision. Attendance at company meetings and training sessions is generally considered optional for sales leaders. Sales leaders receive no benefits, and the company does not withhold any of their pay for tax purposes.  Several sales leaders sued for overtime pay under the Fair Labor Standards Act.

1. Based on the criteria outlined in the text and Attend, discuss the arguments for and against the sales leaders being considered employees or independent contractors.

2. If the sales leaders are considered to be employees, why would they or why would they not be subject to the Fair Labor Standards Act?

3. If the sales leaders are considered to be employees, what compensation are they entitled to?