© Prentice-Hall, Inc., 2001 Chapter Fourteen Compensating the Flexible Work Force: Contingent Employees and Flexible Work Schedules

© Prentice-Hall, Inc., 2001 Table 14-2 Reasons for Part-Time Employment, by Percentage of Full-Time and Part-Time Workers, 1998 Slack work or business conditions Could find only part-time work Seasonal work Job started or needed during the week Child care problems Other family or personal obligations Health or medial limitations In school or training Retired, SS limit on earnings Vacation or personal day Holiday, legal, or religious Weather-related curtailment Other FULL-TIME (%) 8.6 Not applicable < < < PART-TIME (%) USUALLY WORK Sources: U.S. Dept. of Commerce, Statistical abstracts of the United States, 119th ed. (Washington, D.C.: U.S. Government Printing Office, 1999).

© Prentice-Hall, Inc., 2001 Table 14-3 Employers’ Hourly Costs for Full- and Part-Time Employee Benefits, March 1998 Paid leave Supplemental pay Insurance Retirement and savings Other benefits Legally required benefits Total hourly benefits costs FULL-TIME $1.42 $0.68 $1.34 $0.67 $0.03 $1.78 $5.93 $0.27 $0.15 $0.27 $0.14 <$.01 $1.08 $1.90 PART-TIME Sources: U.S. Bureau of Labor Statistics, Employer costs for employee compensation--March 1995, USDL (Washington, D.C.: U.S. Government Printing Office, June 22, 1995). BENEFIT

© Prentice-Hall, Inc., 2001 Table 14-4 Benefits of Job Sharing (1 of 2) l Benefits to Employers »Maintenance of productivity because of higher morale and maintenance of employee skills »Retention of skilled workers »Reduction or elimination of the training costs that result from retraining laid-off employees »Greater flexibility in deploying workers to keep operations going »Minimization of post recession costs of hiring and training new workers to replace those who found other jobs during layoff »Strengthening employees’ loyalty to the company

© Prentice-Hall, Inc., 2001 Table 14-4 Benefits of Job Sharing (2 of 2) l Benefits to Employees »Continued fringe benefits protection »Continued employment when the likelihood of unemployment is high »Maintenance of family income »Continued participation in qualified retirement programs

© Prentice-Hall, Inc., 2001 Table 14-6 Economic Reality Test: Six Criteria to Determine Whether Workers Are Financially Dependent on the Employer 1. The extent to which the worker has the right to control the result of the work and the manner in which the work is performed. 2. The degree to which the individual is “economically dependent” on the employer’s business or, in other words, the amount of control the employer has over the individual’s opportunity to realize a profit or sustain a loss 3. The extent to which the services are an integral part of the employer’s business operations 4. The amount of initiative or level of skill required for the worker to perform the job 5. The permanency, exclusivity, or duration of the relationship between the employer and the worker 6. The extent of the worker’s investment in equipment or materials required for the job

© Prentice-Hall, Inc., 2001 Table 14-8 Alternative Telecommuting Arrangements l Satellite work center. Employees work from a remote extension of the employer’s office that includes a clerical staff and a full-time manager. l Neighborhood work center. Employees work from a satellite office shared by several employers. l Nomadic executive office. Executives who travel extensively maintain control over projects through use of telephone, fax, and electronic mail. l Employees sometimes work entirely outside the office. Others might work off-site only once a month or two to three days a week. l Telecommuters can be full- or part-time employees. l Telecommuting arrangements can be temporary or permanent. A temporarily disabled employee may work at home until fully recovered. A permanently disabled employee may work at home exclusively.

© Prentice-Hall, Inc., 2001 Table 14-9 Maximum Hours before Overtime for Selected States (1 of 2) l Arkansas »10-hour day, 40-hour week for workers with flexible work hour plan if part of collective bargaining agreement or signed employer-employee agreement filed with state Department of Labor. l Connecticut »Nine-hour day, 48-hour week in manufacturing/mechanical establishment for workers under 18 or over 66, handicapped persons, and disabled veterans. »Ten-hour day, 55-hour week during emergencies or peak demand, with commissioner’s permission.

© Prentice-Hall, Inc., 2001 l Connecticut (cont.) »Six-day, 48-hour week for employees under 18 or over 66, handicapped persons, and disabled veterans in public restaurant, cafe, dining room, barber shop, hairdressing, or manicuring establishment; amusement or recreational establishment; bowling alley; shoe shining establishment; billiard or pool room, or photographic gallery. l Michigan »10 hours a day in factories, workshops, salt blocks, sawmills, logging or lumber camps, booms or drivers, mines or other placed used for mechanical or manufacturing purposes. l Nevada »8-hour day, 40-hour week, unless mutually agreed 10-hour 4- day week Table 14-9 Maximum Hours before Overtime for Selected States (2 of 2)