Human Resource Management homework help.
Instructions: Answer both of the following questions. As mentioned in class, the goal of this exam is to see whether you can spot issues and intelligently discuss them in the context of the legal issues presented in class. In many cases there are no “right” or “wrong” answers; there are only more or less convincing arguments. We suggest that you read through the entire exam first and then answer the questions in the order you feel comfortable. Since the questions are of equal value, we suggest that you spend approximately an equal amount of time on each question; however, you are free to depart from that guideline if you feel you need more (or less) time to answer a particular question.
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QUESTION #1
You are the new human resources director for Fiona’s Fabulous Fudge (“FFF”), a candy manufacturing company that sells its products to retailers throughout the United States and also sells them through an on-line website. FFF is incorporated in Delaware and its principal place of business is in Atlanta, Georgia. You work in the Orlando office.
Fiona Fabula, the CEO of FFF, is tired of the hassles of having so many employees and has heard that it is more economically efficient to use independent contractors instead. Consequently, she has decided to transition all of the non-supervisory office staff throughout the company (such as clerks, secretaries, and accounting department workers) from employee status to independent contractor status. The rest of the employees will remain employees. But Fiona still wants to make sure that quality controls are in place so that the company can continue to evaluate and control the performance of the office staff. She has heard there are some rules that govern whether or not someone is an independent contractor or employee, and has asked for your advice in making this transition. Under Fiona’s plan, the office staff will provide their own laptops, but they will use software programs owned by the company and will work out of the company offices. They will be permitted to work from home, provided that they have prior approval. They will receive 1099s and no taxes will be taken out of their checks. However, Fiona would like to make sure they sign the employee handbook. They will also continue to have company email addresses.
Additionally, Fiona wants you to address another issue that FFF is presently facing. About a year ago, the company hired Lucille Balle as a Vice President of Marketing. Balle had extensive experience working in a candy factory with her best friend Estelle (where they made a documentary about life in a chocolate factory), and parlayed that experience into a consulting business for candy manufacturers. That consulting business was doing extremely well, and Balle was about to enter into a very lucrative contract with Nestle. Fiona thought that Balle would be just right for the marketing position, and instructed the prior HR Director, Rikki Ricarda, to make her an offer. Balle accepted, and she started about six months ago. However, unfortunately Balle and Fiona do not get along and Fiona wants to terminate her. In the meantime, Balle came into Fiona’s office to let her know how excited she was about the upcoming promotion that Ricarda had promised her. Balle also mentioned in passing that, if Ricarda hadn’t promised her that she had a guaranteed contract for two years, Balle would never have come to FFF. Fiona doesn’t think there is any paperwork memorializing what Ricarda said, but she’s not sure. Moreover, Fiona tells you that she had specifically sent an email to Ricarda stating that she was never to enter into agreements to employ people for a particular length of time and that Fiona would not honor them. Fiona had asked for a read receipt, but didn’t get one (in fact, failing to read emails is one of the reasons Ricarda was let go).
You also note that the employee handbook issued and signed by FFF states that all employees are at will, and any employment agreement has to be signed by the CEO. And, you have checked Balle’s personnel file and discovery that she has signed a four year non-compete with the company that applies throughout the United States.
Fiona is now concerned about what Balle will do if she is terminated. She wants you to analyze Balle’s legal claims, including the likelihood that Balle might succeed, and she wants to know what court a case might end up in. Fiona also wants to know if the company will be able to enforce the four year non-compete agreement after Balle is terminated. Fiona wants you to make sure to apply the law that you know to the facts. If you need more information to analyze, Fiona wants you to tell her that also.
However, Fiona’s assignment to you doesn’t stop there. Fiona is tired of the continuous theft of boxes of fudge from the distribution area, and has a strong suspicion that the loss prevention manager is responsible. She asks you about the following course of action: (1) unlocking and searching the loss prevention manager’s desk drawer when he is not around (FFF’s announced policy in the handbook is that employees can use their desk drawers to keep personal items in them); and (2) polygraphing him. In the meantime, Fiona tells you that she has already told her top managers to keep an eye on the loss prevention manager because she thinks the loss prevention manager is a thief. Apparently, word got out because the loss prevention manager has already told his colleagues he is innocent and if “anything happens to his job, then Fiona had better watch out because he is going to go after her.” You happen to know from on-line media that the loss prevention manager had previously been terminated from the police department for using excessive force when arresting people. Fiona wants to know if you see any problems with the current situation or her plan to investigate the thefts.
You sigh. Another typical assignment from Fiona – she’s told you to complete the task in 1 hour and 15 minutes.
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QUESTION #2
You are the Director of Human Resources for Solo Family Enterprises, Inc. (“SFE”), a cargo transport company with facilities in Cape Canaveral and Tampa, Florida.
One day, as you are sitting in your office, outside union organizer Jango Fett stops in with what he claims are cards signed by 55% of all production employees, maintenance workers, clerical employees, guards, supervisors and professional employees. He wants the Company to voluntarily recognize separate department-based bargaining units (for instance, a unit of employees in the loading departments located in both facilities). How should you respond to Jango? What should you do with the cards? Also, should the Company agree to the units that Jango is proposing?
After Jango leaves, you inform the CEO of SFE, Han Solo, of Jango’s visit. Han is enraged by the prospects of unionization and ticks off four courses of action that he wants to undertake immediately:
1. Tell the employees that if they reject the Union, SFE will provide all employees with a 5% increase and tickets to Galaxy’s Edge at Disney’s Hollywood Studios.
2. Have Han’s wife, Leia, secretly attend the next union meeting to see which employees are supporting the organizing effort.
3. Have Company supervisor (and Han’s brother-in-law) Luke Skywalker talk about his bad experiences when he was a unionized employee at nearby Palpatine, Inc.
4. Immediately implement a policy that employees cannot solicit co-workers or distribute materials at any time while they are on SFE property.
What do you tell Han about his suggestions?
On an unrelated note, SFE’s former Director of Marketing, Lando Calrissian, has retained a lawyer and is asking for payment of overtime compensation for the entire period of his employment. Prior to being terminated in June 2019 for making questionable deals, Lando had served in his position for six years. He supervised only 1 employee and was paid an hourly wage of $50 per hour. Lando regularly worked about 50 hours per week. Do you think SFE has any wage-hour issues with respect to Lando? If so, what are they and what is SFE’s potential exposure?
Finally, one of SFE’s top sales people in the Tampa area (and Han’s estranged son), Ben, has just resigned and gone to work to work for one of our competitors, Jabba Hutt, Inc., located in St. Petersburg, in violation of his three-year, nationwide non-compete. Do you think SFE can enforce this agreement?
* * * * *
QUESTION #1
You are the new human resources director for Fiona’s Fabulous Fudge (“FFF”), a candy manufacturing company that sells its products to retailers throughout the United States and also sells them through an on-line website. FFF is incorporated in Delaware and its principal place of business is in Atlanta, Georgia. You work in the Orlando office.
Fiona Fabula, the CEO of FFF, is tired of the hassles of having so many employees and has heard that it is more economically efficient to use independent contractors instead. Consequently, she has decided to transition all of the non-supervisory office staff throughout the company (such as clerks, secretaries, and accounting department workers) from employee status to independent contractor status. The rest of the employees will remain employees. But Fiona still wants to make sure that quality controls are in place so that the company can continue to evaluate and control the performance of the office staff. She has heard there are some rules that govern whether or not someone is an independent contractor or employee, and has asked for your advice in making this transition. Under Fiona’s plan, the office staff will provide their own laptops, but they will use software programs owned by the company and will work out of the company offices. They will be permitted to work from home, provided that they have prior approval. They will receive 1099s and no taxes will be taken out of their checks. However, Fiona would like to make sure they sign the employee handbook. They will also continue to have company email addresses.
Additionally, Fiona wants you to address another issue that FFF is presently facing. About a year ago, the company hired Lucille Balle as a Vice President of Marketing. Balle had extensive experience working in a candy factory with her best friend Estelle (where they made a documentary about life in a chocolate factory), and parlayed that experience into a consulting business for candy manufacturers. That consulting business was doing extremely well, and Balle was about to enter into a very lucrative contract with Nestle. Fiona thought that Balle would be just right for the marketing position, and instructed the prior HR Director, Rikki Ricarda, to make her an offer. Balle accepted, and she started about six months ago. However, unfortunately Balle and Fiona do not get along and Fiona wants to terminate her. In the meantime, Balle came into Fiona’s office to let her know how excited she was about the upcoming promotion that Ricarda had promised her. Balle also mentioned in passing that, if Ricarda hadn’t promised her that she had a guaranteed contract for two years, Balle would never have come to FFF. Fiona doesn’t think there is any paperwork memorializing what Ricarda said, but she’s not sure. Moreover, Fiona tells you that she had specifically sent an email to Ricarda stating that she was never to enter into agreements to employ people for a particular length of time and that Fiona would not honor them. Fiona had asked for a read receipt, but didn’t get one (in fact, failing to read emails is one of the reasons Ricarda was let go).
You also note that the employee handbook issued and signed by FFF states that all employees are at will, and any employment agreement has to be signed by the CEO. And, you have checked Balle’s personnel file and discovery that she has signed a four year non-compete with the company that applies throughout the United States.
Fiona is now concerned about what Balle will do if she is terminated. She wants you to analyze Balle’s legal claims, including the likelihood that Balle might succeed, and she wants to know what court a case might end up in. Fiona also wants to know if the company will be able to enforce the four year non-compete agreement after Balle is terminated. Fiona wants you to make sure to apply the law that you know to the facts. If you need more information to analyze, Fiona wants you to tell her that also.
However, Fiona’s assignment to you doesn’t stop there. Fiona is tired of the continuous theft of boxes of fudge from the distribution area, and has a strong suspicion that the loss prevention manager is responsible. She asks you about the following course of action: (1) unlocking and searching the loss prevention manager’s desk drawer when he is not around (FFF’s announced policy in the handbook is that employees can use their desk drawers to keep personal items in them); and (2) polygraphing him. In the meantime, Fiona tells you that she has already told her top managers to keep an eye on the loss prevention manager because she thinks the loss prevention manager is a thief. Apparently, word got out because the loss prevention manager has already told his colleagues he is innocent and if “anything happens to his job, then Fiona had better watch out because he is going to go after her.” You happen to know from on-line media that the loss prevention manager had previously been terminated from the police department for using excessive force when arresting people. Fiona wants to know if you see any problems with the current situation or her plan to investigate the thefts.
You sigh. Another typical assignment from Fiona – she’s told you to complete the task in 1 hour and 15 minutes.
**********
QUESTION #2
You are the Director of Human Resources for Solo Family Enterprises, Inc. (“SFE”), a cargo transport company with facilities in Cape Canaveral and Tampa, Florida.
One day, as you are sitting in your office, outside union organizer Jango Fett stops in with what he claims are cards signed by 55% of all production employees, maintenance workers, clerical employees, guards, supervisors and professional employees. He wants the Company to voluntarily recognize separate department-based bargaining units (for instance, a unit of employees in the loading departments located in both facilities). How should you respond to Jango? What should you do with the cards? Also, should the Company agree to the units that Jango is proposing?
After Jango leaves, you inform the CEO of SFE, Han Solo, of Jango’s visit. Han is enraged by the prospects of unionization and ticks off four courses of action that he wants to undertake immediately:
1. Tell the employees that if they reject the Union, SFE will provide all employees with a 5% increase and tickets to Galaxy’s Edge at Disney’s Hollywood Studios.
2. Have Han’s wife, Leia, secretly attend the next union meeting to see which employees are supporting the organizing effort.
3. Have Company supervisor (and Han’s brother-in-law) Luke Skywalker talk about his bad experiences when he was a unionized employee at nearby Palpatine, Inc.
4. Immediately implement a policy that employees cannot solicit co-workers or distribute materials at any time while they are on SFE property.
What do you tell Han about his suggestions?
On an unrelated note, SFE’s former Director of Marketing, Lando Calrissian, has retained a lawyer and is asking for payment of overtime compensation for the entire period of his employment. Prior to being terminated in June 2019 for making questionable deals, Lando had served in his position for six years. He supervised only 1 employee and was paid an hourly wage of $50 per hour. Lando regularly worked about 50 hours per week. Do you think SFE has any wage-hour issues with respect to Lando? If so, what are they and what is SFE’s potential exposure?
Finally, one of SFE’s top sales people in the Tampa area (and Han’s estranged son), Ben, has just resigned and gone to work to work for one of our competitors, Jabba Hutt, Inc., located in St. Petersburg, in violation of his three-year, nationwide non-compete. Do you think SFE can enforce this agreement?
