Legal Issues

Regardless of state affiliation, regular employees are entitled of benefits offered by the company. These employees are those who have passed the probation period and are placed on the regular rolls of the company or one who is to perform work directly related to the regular operations of the firm. A regular employee, who is also called a permanent or employee without definite period, may not be terminated in his or her services by the employer without just cause except when authorized by law. Temporary or independent contractors on the other hand are an individual who sells his or her services to an organization but who is not considered an employee of that organization (Kaplin and Lee 2006, p. 259).

The obvious differences between the two include, first, the basis for their employment. Regular employee applied, was hired, on probation for at leased six month, and has passed the probation period. Independent contractors do not undergo this process because they are skilled individuals who work for the company under a particular arrangement. It is in a sense need based contract. Second, is on the basis of applicable labor laws. Regular employees are protected under Federal Labor Standard Act (FLSA), Title VII, and other specific laws that is not applicable to independent contractors.

Exempt and non- exempt employees
The exempt employees are those exempted from the provisions of FLSA. They include executive, administrative, and professional employees who are paid on monthly basis rather on a number of hours. They are exempt from the minimum wage and overtime laws. Non-exempt employees on the other hand are bounded by time clock and time sheets for the purpose of determining the number of hours to be paid.

Basically employers respond to the state law based on merits of the applicable law. In the case of regular employees versus independent contractors, firms respond by complying with the existing federal law that favors them. However, Firms do comply with the existing states law in manner that is appropriate and ethical. This understandable as under the provisions of FLSA and Title VII, an employee can file a suit against the employer who violated its provisions. This is also the case with the exempt and non-exempt employees (Baldwin 1996, p. 34-36).