Question
Roger is a student at Humber that is studying graphic design. In order to make some extra money to pay his tuition, Roger works as
Roger is a student at Humber that is studying graphic design. In order to make some extra money to pay his tuition, Roger works as a graphic designer. One day Roger meets Chris who is opening a printing business. Chris asks Roger to design a logo for his new business. Roger agrees and Chris pays him $100 for his service.
Chris's printing business keeps growing. Most of Chris's clients do their own graphic design. However, some of Chris's clients ask him to do graphic design for them. Chris asks Roger if he will do graphic design for any of his clients that need it. Roger agrees and starts completing the work as it comes in. Roger sends Chris's clients a bill directly for his services whenever he completes a job. Rogers bills Chris's clients at a rate of $85 per hour.
Chris starts to realize that Roger is doing a lot of work for his clients. Chris decides to ask Roger to send him his bills for work he completes. Roger agrees and starts billing Chris for any time he spends on a graphic design project. Chris adds $10 per hour premium to the bill Roger sends him and then sends it to the client.
Roger learns about the $10 per hour premium being charged and realizes that Chris is making free money off his labour. Roger approaches Chris and asks that he pay him $30,000 per year as a base salary regardless of how much work he does. In addition to his base salary, Roger also asks that he continue to be paid at the rate of $85 per hour for any work he completes for clients. Chris agrees.
- Is Roger an independent contractor or employee? Explain your rational (15 Marks)
- Chris finds out that Roger is having an affair with his wife. Chris wants to terminate Roger from his company. Chris approaches you as his lawyer and asks if he fires Roger for having an affair with his wife what are the legal consequences and what could Roger do once he is terminated? What is your advice to Chris? (15 Marks)
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