Employment Law case Study Example | Topics and Well Written Essays - 500 words

Employment Law - Case Study Example Momma Mia will then be subjected to wrongful termination charges. In addition, Momma Mia will be held liable for providing state and federal employment taxes, compensation insurance, withholding taxes, Social Security taxes and other employment benefits. Misclassification can subject an employer to penalties (DuBoff 1999 p. 80; Twomey p. 605). No statutory law clearly defines the term ‘employee,’ but common law describes an employee as one who provides or performs services for another for compensation where the employee determines the manner and the means by which the services or work is to be performed. This common law agency-test was laid down in Nationwide Mutual Insurance Co v Darden, 503 US 318 (1992). Likewise, section 220 (2) of the Restatement (Second) of Agency defines the term servant similarly and enumerates ten elements to distinguish between servant and independent contractor: extent of control; distinctiveness of occupation; necessity of supervision over na ture of work; skills required; supply of tools for the work; length of employment; method of payment; role of work in employer’s regular business; what the parties believed, and; if principal is in business or not. Applying the law at bar, Jill qualifies as an employee. Her schedule and contacts, among others, need to be approved by her employer and equipment and other tools will be supplied as well by it.