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Cost Club Scenario 1 Essay

1558 words - 7 pages

Hrm 546
Scenario One: Cost Club
Cost Club is administratively organized into regions, and each region develops their own operational policies as long as the low cost bottom line and reasonable customer service is maintained (University of Phoenix, 2012). There are several routine human resources issues that need to be addressed in the workplace. The first issue involves potential wrongful discharges at the Anderson Cost Club store. The second issue is assisting the regional CEO in reducing employee costs; addressing the use of independent contractors and temporary employees. The third issue involves determining if Cost Club is legally responsible in three separate situations because of ...view middle of the document...

Even so, to protect the company, it is best to document everything regarding the history that led to the terminations. There are several reasons an employee can sue the company for wrongful discharge; constructive, retaliatory, other tort liability, military leave, or constitutional protections. It appears that the GM had a valid reason for terminating the two employees, and there should not be any issues regarding wrongful discharge; however, in the future the GM needs to provide a reason in writing as to why each employee is being terminated so it does not leave the company open to any possible liabilities.
Message 2: Regional CEO’s question about reducing employee costs
It is not against the law to employ additional temporary employees and independent contractors to reduce employee costs. To protect Cost Club, there are a few measures that need to be taken to ensure there are no misconceptions regarding these employment relationships. A written document between independent contractors and Cost Club will be drafted to describe the nature of the position, the type of relationship, the compensation, and the duration of the job; whether this is an at-will position or for a specified period of time. Contractors are responsible for paying their own taxes, they do not receive benefits and they are not reimbursed for business expenses. Temporary employees are usually hired by a third party staffing organization, and they can receive benefits through the staffing organization, if available. Temporary employees have no job stability and can be terminated at any time. Both temporary employees and independent contractors provide the company with additional support based on business demands, while not incurring the costs of regular employees. Cost Club does not have to pay benefits or provide extensive training to temporary or contracted employees because there is no vested interest in these employees. At no time, shall a manager or an employee of Cost Club make any promises to an independent contractor or temporary employee regarding a permanent position because it could lead to some serious legal issues down the road.
Message 3: Safety Manager’s concern about injury and damages
A customer service associate assaulted a customer so what did management do? Does the employee have a violent history at work? Has Cost Club properly documented the employee’s records for previous violent acts? What do the employee’s performance evaluations show? Cost Club needs to determine if they were negligent in placing a customer in a position where he or she could be harmed. Cost Club should make sure they followed due diligence when hiring this employee so the customer could not go after the company for negligent hiring. They also want to ensure that the employee was properly trained regarding company policies and what their expectations are surrounding workplace violence. If Cost Club did their due diligence to ensure the customer was not placed in any intentional...

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