3. A company that builds gas pipelines hires rig welders as independent contractors and has them sign independent contractor agreements. The welders are hired as needed to complete particular projects for short, but intense (10-14 hours a day, 6 days a week) periods of work. During projects, the welders do not work on other projects. The welders are responsible for providing their own equipment and making any necessary repairs to it. They are typically paid $30 an hour. Welders are not provided with blue-prints and must complete their tasks when told to do so. Foremen tell the welders when to report to work, when to take breaks, and when to end the workday. The foremen do not establish welding specifications or standards or tell the welders how to complete welds. A rig welder sues for unpaid overtime pay. Are rig welders employees under the Fair Labor Standards Act or independent contractors with no right to overtime pay?
3. A company that builds gas pipelines hires rig welders as independent contractors and has them sign independent contractor agreements. The welders are hired as needed to complete particular projects for short, but intense (10-14 hours a day, 6 days a week) periods of work. During projects, the welders do not work on other projects. The welders are responsible for providing their own equipment and making any necessary repairs to it. They are typically paid $30 an hour. Welders are not provided with blue-prints and must complete their tasks when told to do so. Foremen tell the welders when to report to work, when to take breaks, and when to end the workday. The foremen do not establish welding specifications or standards or tell the welders how to complete welds. A rig welder sues for unpaid overtime pay. Are rig welders employees under the Fair Labor Standards Act or independent contractors with no right to overtime pay?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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