Employment Law

  1. Shepherd Construction was the general contractor on a job site to build a retail store. There were no other general contractors on the job site. Shepherd hired a plumbing company to install the pipes at the job site. A Shepherd employee was killed when the dirt walls fell on him as he was digging the holes for the building foundation. A plumber was in the hole and was also killed. Explain the application of OSHA in conjunction with the fact pattern. Analyze and evaluate the potential causes of action and liability, if any, of Shepherd, the retail store, and the plumbing company for the deaths that took place at the job site.
  2. An ambulance service transports disabled individuals on a non-emergency basis. Jane was hired as a night dispatcher. She worked at home, and was required to be on duty to take calls for service from 5:00 p.m. to 8:00 a.m., Monday through Thursday, and from 9:00 p.m. Friday to 7:00 a.m. on Monday. She was paid $550 per month. She was not given any special training, she was simply instructed how to fill in record sheets, and how to call the ambulance crew to notify them of the service request. Jane was free to engage in personal business as long as it did not interfere with the calls, and was able to leave her home as long as she made sure that someone was available to answer the phone.
    The ambulance company claimed that Jane was an independent contractor and was exempt from the FLSA's overtime and wage requirements. Jane filed suit to collect overtime and minimum wage back pay under the FLSA. Determine whether she will succeed. If you determine that she will succeed, explain the remedies available. Break down the elements of your response using applicable case law and statutory support for your position.
  3. Retirees were employed by White Farms while the company was an affiliate of the White Motor Corporation. The dispute concerned the White Motor Corporation Insurance Plan for Salaried Employees. a non-funded. noncontributory benefit plan that provided life, health, and welfare insurance, prescription drugs, hearing aid benefits, and dental care to retirees and their eligible dependents. White Motor employees periodically received booklets describing their benefits under these plans.
    The 1980 booklet described insurance provided and carried the explicit disclaimer that it was "not the contract of insurance." The booklet differentiated between different categories of salaried employees and appeared to have been prepared for distribution to both active and retired employees.

The 1980 booklet described insurance provided and carried the explicit disclaimer that it was "not the contract of insurance." The booklet differentiated between different categories of salaried employees and appeared to have been prepared for distribution to both active and retired employees.
The 1985 booklet was addressed specifically to retired employees. Much of the information in the booklet made no distinction between the Welfare Benefit Plan and the Pension Plan, and its summary of an alleged cancellation clause referred to both plans.
"The Company fully intends to continue your plans indefinitely. However, the Company does reserve the right to change the Plans, and, if necessary, to discontinue them. If it is necessary to discontinue the Pension Plan, the assets of the Pension Fund will be used to provide benefits according to the Plan document."
No similar clause appeared in the 1980 booklet. While the company was undergoing court supervised reorganization under Chapter 11 of the Bankruptcy Code, it decided to discontinue its noncontributory insurance coverage for its retired employees.
On the basis of the facts presented. assess whether the company is free to discontinue its noncontributory insurance coverage for its retired employees. Explain your conclusion and use applicable law to support your response.

Sample Solution