1. To determine whether a worker should be classified as an employee or an independent contractor, the IRS looks at three categories. Identify the three categories & and provide at least two examples in each category.

2. You are an employer who pays your employees on a salary basis. You pay this salary twice a month, thus employees receive 24 payments a year. If an employees salary is $800 twice a month for working a 40-hour work week:

a. What is the employees regular rate of pay for a 40-hour week (weekly pay)?

b. Is the regular rate in compliance with FLSA Wage and Hour requirements? With GFLSA? Why?

3. Paco (a non-exempt employee) earns a salary of $1,600 every two weeks. Paco worked an extra ten (10) hours during the first week of the pay period. On the second week of the pay period Paco takes off fifteen (150 hours from work. Show all calculations.

a. What is Pacos hourly regular rate of pay?

b. Is Paco entitled to overtime for the extra ten hours worked during the first week of the pay period? Why or why not?

c. If entitled to overtime, what is Pacos overtime rate? How much overtime is Paco due?

d. What would Pacos gross pay be at the end of the two weeks?

4. List and describe (briefly) the three major or primary types of Retirement plans.

5. Keeana is a waitperson at the Rollin Lanes Bowling Center. During the largest bowling tournament several of the bowling teams celebrated their victory at the bowling alleys pub. The crowd become boisterous and begins to harass Keeana both physically and verbally. You are Keeanas supervisor and witness the harassment.

a. Explain in detail what your responsibilities are as a supervisor and how you would address the issue.

b. Is harassment by customers covered under any federal antidiscrimination laws? If yes, which one(s)? How?

6. Carlos has been a troublesome employee over the last 5 years. After much debate and considering the best interest of the business and the other diligent employees, you conclude that you have no choice but to terminate Carlos at this time. However, at the last management meeting, the other division heads point out to you that Carlos has helped the company grow over the years, notwithstanding his troubles. The CEO agreed to reconsider termination and directed you, as the HR director, to prepare alternatives. Present at least 5 alternatives to Carloss termination below. Briefly explain each.

7. Xavier has only one arm and applies to your company for a job that requires driving. The job also requires that Xavier spend approximately 80% of the time on the road covering a three state territory. You are preparing interview questions in preparation to interview Xavier. Provide no less than five (5) questions you would ask Xavier relative to his ability to do the job as a territorial sales representative for your company. Briefly explain why each is an acceptable question.

8. Lolo Auto Parts, located in Harmon, Guam, hired Anna at a rate of $9.75 per hour as a customer service representative (nonexempt). You pay your employees every two weeks. One morning Annas car fails to start. Lolo allows her to replace her car battery with a new one from the store. The price of the battery is $150.00. Anna agrees that Lolo can deduct the price of $150.00, from her paycheck.

a. What is the maximum amount Lolo can deduct from Annas gross pay per period to cover the cost of the battery?

b. Can Lolo deduct the full amount of the battery from one check? Explain why or why not?

9. Inco Corporation hires Juan and provides him with a computer for him to use at work. Juan acknowledges that he has read an understood Incos employment policies that he is to use the computer for business matters only, and that he is not allowed to use it for improper, derogatory, defamatory, obscene or other inappropriate purposes. Juan further acknowledges that Inco may monitor his usage and may discipline or fire him for improper use. Inco fired Juan after finding that he used the computer to visit pornographic sites.

a. Does Juan have a legal basis to complain that Inco violated his privacy? Why or why not?

b. Is there anything else Inco could do to ensure this does not occur again?

10. Identify the protected classes, as recognized by the EEOC. describe each briefly.

11. Tara recently graduated from the University of Guam with a marketing degree. She applied for many positions and was recently called for an interview as a Program Manager for a large marketing firm. At the interview, Juan, the interviewer notices that Tara is wearing a wedding ring and asks Tarta, how many children do you have? Tara responds, none at this time, but I plan to have kids in the future. Juan begins to describe the job and states that the job is demanding and further asks, will you be able to balance the work with child care responsibilities. Tara responds, I plan to share those responsibilities with my husband. Juan is doubtful that Tara could manage the job and childcare and decided not to hire Tara. He explained that being a mother is not compatible with a fast paced business environment. Is Juans decision unlawful? Why or why not.

12. An insurance company received complaints that Tomas, a senior vice president, had sexually harassed other employees. Tomas denied the charges, so the company interviewed 21 employees who worked with Tomas, including the five that Tomas asked be interviewed. The company determined that it was likely that harassment occurred. Tomas was terminated. Tomas sued for wrongful discharge, claiming that he had an implied contract requiring good cause for termination his employment and that the company did not have good cause to terminate his employment. At trial the jury heard the evidence and found that the company did not proves that Brian sexually harassed anyone. The jury returned a verdict of $1.8 million in Tomass favor.

a. Applying Guam law, does Tomas have an implied contract for employment? Why or why not?

b. Was the jury wrong in finding that the company was required to prove that sexual harassment actually occured?

c. Did the company act in good faith in conducting the investigation? Why?

PLEASE provide references.