USF Ripped T Business Law Case Question

Yourcompany,RIPPED T, employs approximately 100 employees. All employees are located in and work from offices in the State of Atlantis, the 52nd state of the United States of America, a state which does not have employment laws which expand Federal employment laws. You print t-shirts with custom logos provided by your customers- customers are vetted on ability to pay, not their messaging- and thanks to your secret, experimental ink formula (also manufactured on-site), RIPPED promises the logo will NEVER fade. It is a family-owned business. The manufacturing facility is housed in the same building as the executive offices, and first line managers, quality control, safety and on-site health clinic. Sister is the CEO; Father is the CFO; Brother is the plant manager; and Dr. Nye the Science Guy invented the ink and works as a consultant to the plant. You are the HR Director. The company is located on the outskirts of the only major city in the state which boasts two Universities- one is a niche science-based school and the other is a fine arts school. Tourism is the state’s main source of revenue – the island is famous for its beautiful beaches, active retirement communities, and a “5’o’clock somewhere” laid-back party culture. Jobs are scarce on the island and RIPPED pays well, so competition for positions is high.

Dr. Nye is working on improvements to his formula. While he shares a name with the iconic TV guy, he is no relation to him, although his resume presents false evidence of his credentials and work history! He works best over a margarita at the beach tiki hut where many employees gather after work. In spite of his wrinkled old appearance, he draws a regular circle of company executives and workers from the plant who seem very interested in his work. Their admiration of him tends to increase as the evening goes on and gets rather rowdy. Rumor has it the safety manager Chris Chemist is his current love interest. Abdul and Mai Li are interns from the Science based university- top of the class, and among the youngest students in the country to complete a rigorous course of niche study. Both are US Citizens, age 18. Abdul is a devote, practicing Muslim. They are studying the impact of discharge from industrial plants on the environment. As they complete their internships, you meet with them to talk about future opportunities with the company. They have both asked Dr. Nye for a recommendation for employment AT RIPPED T after graduation in the fall.

Your meetings with Abdul and Mai Li quickly take a turn for the worst…..

Mai Li tells you she is resigned to the fact that she has no future with the company. She rambles a bit about how Dr. Nye told her she was not cut out to be a scientist. She had worked with him every day in the plant’s lab and also in the quality control rooms. She had even been working on the improvements to the ink with him and some other side projects he was working on over on the other side of the lab (unrelated to Ripped T work.) She looks down and quietly mutters: “I know you have to make your supervisor like you and he does not like me. I did everything he asked of me just so that I would earn his recommendation.” She begins to cry and asks to be excused from the meeting.

Abdul passes her in the hallway and comes into your office. He asks why Mai Li is crying. You hesitate….he says, “I hope someone around here will do something to help the poor girl. I know Dr. Nye is like a God around here after all these years, but Dr. Nye treats her like dirt- we are all in the lab and he is telling her to fetch this and that because that what people like her do for important men like him. The nerve of that guy! He kept yelling at her to bow to him “like a good little geisha”- she finally just did it without him asking. She told me he practically dragged her from the lab to the Tiki bar where he holds court with his adoring fans- he made fun of her all night….I think she started drinking his stupid margaritas to block out the humiliating things he was saying about her …for goodness sakes- she’s only 18…I have my doubts about that guy and what he’s up to- ….and that’s only the tip of the iceberg!” He hesitates- then in shock exclaims…”Oh my, she didn’t tell you about all that’s been going on? I guess I should have kept my mouth shut…I’m going to go see if she is OK.” He hurriedly leaves your office and runs out of the building hoping to catch her in the parking lot.

You run down the hall to the CEO to report what just happened! Her first response is- ”Thank goodness he is a consultant and not our employee or it sounds like we might be in a heap of trouble…”

Question 1: Is Dr. Nye properly classified as an independent contractor/consultant or is he more likely to be held to be an “employee?” Set forth those factors under the common-law agency test which support your position and those which cut against it. You may identify and refer to other tests to support your arguments. If the fact pattern does not specifically address one of the factors you would argue is crucial to a determination, you may identify the factor and state that more information is needed: For example, the fact pattern does not include whether he has a written independent contractor agreement. You would therefore argue: “ We don’t know if he has a written contractor agreement, but If he did, that would weigh in favor of independent contractor status. However, the label attached to an individual by the Employer is not determinative of IK/Employee status, nor is the mere existence of an agreement signed by the parties. In order of weight I would attach to the facts presented, the following factors suggest he is an ________because _____________. But these other factors would support an argument that he is a ___________________ because ___________.” Group your “factors” together and made a decision and support it- think about which factors have the greatest weight.

150 points QUESTION 2– You may have concluded in your answer to Question 1 that Dr. Nye is more likely to be classified properly as an employee. That’s fine. Don’t worry and don’t change your position based on the fact that this question assumes he is an independent contractor! But, for this question, assume the CEO is correct and Dr. Nye is an independent contractor, can Mai Li make out aprima faciecase of discrimination and/or harassment against Ripped T?

If so, identify the statute, common law theory, or other basis upon which a claim may exist, and the specific provision upon which she must rely to state a claim.

For each cause of action you identify, list the essential elements Mai Li must establish to make out aprima faciecase and argue whether on the facts presented she is likely to be able to do so. If you are missing a key fact, you may state an assumption and then argue your point. You may identify more than one potential cause of action (strongly suggested you identify as many truly legitimate causes of action as you may suspect may be the subject of a demand letter from an attorney if she goes running to a lawyer as she leaves the plant…)

You are not required to but may use the following as a template for your answer:

“Ripped T may be held liable for the actions of Dr. Nye because _____________. If Mai Li pursues legal action, she may allege a claim of discrimination on the basis of her ______ under the ___________________. To state a prima faciecase she must establish: ____________. Based on the facts I know now, I do/do not think she will prevail on this claim because __________________. However, if upon further investigation I find_________________, I would take the opposite position because ___________________________.