Wk5 DQ1

.docx

School

Grand Canyon University *

*We aren’t endorsed by this school

Course

825

Subject

Law

Date

Apr 3, 2024

Type

docx

Pages

2

Uploaded by BauerKingston2025 on coursehero.com

Choo Choo Rides offers individuals the opportunity to develop their own business by utilizing their own vehicles as a transportation alternative for customers who need a ride. Choo Choo requires drivers to wear a train hat, install a train whistle on the vehicle, utilize Choo Choo's proprietary GPS-based customer ordering system, and make themselves available for rides at least 4 hours per day and 3 days per week. Choo Choo sets the pricing for all rides through its proprietary software program. The driver receives 80% of the cost of each ride and 100% of all gratuities. Choo Choo collects 20% of the cost of each ride. Are Choo Choo drivers employees or independent contractors? Explain. Which of these distinctions is to the advantage of Choo Choo and which is more advantageous to the drivers? Support your position. The determination of whether Choo Choo Rides drivers are employees or independent contractors’ hinges on several factors, including the level of control exerted by Choo Choo over the drivers and the degree of independence maintained by the drivers (Barron, 1999). The fact that drivers use their own vehicles suggests a degree of independence. Independent contractors typically use their own tools and resources (Stafford, 2016). While Choo Choo mandates the use of its proprietary GPS system, the reliance on personal vehicles and the absence of a company-provided vehicle contributes to an argument for independent contractor status. The requirement of making oneself available for rides at least 4 hours per day and 3 days per week implies a level of flexibility, aligning with the autonomy characteristic of independent contractors and although Choo Choo sets the pricing, it's not a decisive factor. Independent contractors can still be subject to certain pricing structures. However, the insistence on drivers wearing a train hat, installing a train whistle, and using Choo Choo's proprietary GPS system suggests a level of control over the appearance and tools used by the drivers (Stafford, 2016). The requirement of being available for rides at least 4 hours per day and 3 days per week introduces a semblance of control over the drivers' schedules. And, while the determination of pricing is not solely indicative of employee status, it may contribute to an argument if other factors suggest a higher degree of control. Classifying drivers as independent contractors is generally advantageous for Choo Choo. Independent contractors afford the company flexibility and cost savings (Miller, 2021). Choo Choo can avoid providing benefits such as health insurance, workers' compensation, and paid time off. Moreover, the company may have less liability for tax withholdings and other employment-related costs. Being classified as employees typically comes with certain benefits that independent contractors might not receive. These benefits may include health insurance, workers' compensation, and potential entitlements to minimum wage and overtime pay (Miller, 2021). Additionally, employees may have more employment rights and protections under labor laws. References: Barron, M. H. (1999). Who's an Independent Contractor? Who's an Employee?.  The Labor Lawyer , 457-473. Miller, R. L. (2021).  Business law today: Comprehensive edition  (13th ed.). Boston, MA: Cengage. ISBN-13: 9780357634691 Stafford, B. E. (2016). Riding the Line between Employee and Independent Contractor in the Modern Sharing Economy.  Wake Forest L. Rev. ,  51 , 1223.
REFERENCE FOR THIS CLASS: KEEP IN CASE YOU NEED TO USE IT Miller, R. L. (2021).  Business law today: Comprehensive edition  (13th ed.). Boston, MA: Cengage. ISBN-13: 9780357634691
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help