Advisory Memo: Employment Issues
HR INTERNAL ADVISE MEMO, Form HR-127
Name of Employee Affected: Gary
Name of HR Representative: Robert Gil
Gary works as contractor for State of Estates on a need basis for specific estate planning jobs. Recently, he was dismissed from the organization and he is now attempting to collect unemployment benefits against States of Estates.
Since Gary is a contractor and not an employee of the organization, State of Estates pays him as a contractor using Form 1099-MISC (“Independent Contractors”, 2017). The organization hires him on a need basis and does not withhold any income tax, Medicare, unemployment from any payments made to him. Therefore, he is responsible for to make Self Employment Contributions when he files his income tax return.
State of Estates is not responsible for Gary’s unemployment as Gary is a hire contractor and he and only he is responsible to invest in his own unemployment benefits (“Independent Contractors”, 2017).
Although, the organization understands the dilemma Gary is questioning, his employment was very clear, and it was as an independent contractor and not an employee of the organization. Therefore, he is not eligible for unemployment benefits from State of Estates.
References:
Independent Contractors. (2017). Retrieved from https://www.workplacefairness.org/independent-contractors#11
HR INTERNAL ADVISE MEMO, Form HR-127
Name of Employee Affected: Susan
Name of HR Representative: Robert Gil
Susan was a financial product representative for the Nebraska Branch office and was recently dismissed from work and did not received payment of commission after landing a major Mutual Fund. She has filed a law suit for wrongful termination.
Under At-Will Employment, the organization can terminate employment at any time without cause. The law describes several things that employers can do under At Will employment. The employer can terminate employment, reduce wages, change benefits, change work hours, job duties and work schedule without having to be at any fault of wrong doing (Doyle, 2017).
In the State of Nebraska, the payment of commissions is required to be paid to the employee on the next regular payday after receiving payment from the Mutual Fund Susan landed while employed with the organization. This is covered under Nebraska’s Legislation Chapter 48 Section 1230.01 (“Nebraska Revised Statute 48-1230.01”, 2017).
The commission must be paid within the terms set by the State of Nebraska under Chapter 48 Section 1230.01. If the organization fails to pay the monies owed to Susan, the organization can be subject to a fine set forth under section 29-436. However, if this case had taken place in the State of Florida, there aren’t any laws stating when the employer should pay anyone who has been terminated, but the wages still need to be paid.
References:
Doyle, A. (2017). Exceptions to Employment at Will. Retrieved from https://www.thebalance.com/exceptions-to-employment-at-will-2060484
Nebraska Revised Statute 48-1230.01. (2017). Retrieved from http://nebraskalegislature.gov/laws/statutes.php?statute=48-1230.01