Case Study

Read the case carefully, understand well, and answer the questions.
Dalia worked on a contract basis as an auto mechanic for the clients of an auto repair shop. Whenever there was too much work for the employees of the shop, Dalia would receive a call and be assigned by the shop to do specific repairs on a particular vehicle.

Dalias specialty was rebuilding engines, and the firm would often contract her to handle complex breakdowns for which they did not have sufficient time, since she worked much faster than the other four mechanics it had on staff. When the job was completed, she was paid a commission for her work based on the amount charged to that client by the auto shop. This commission was established in advance in the contract Dalia was offered when she accepted the position.

During the time she was working, Dalia was paid weekly, was free to use the shops garage, and could use whatever equipment and supplies were necessary to complete the job. In order to ensure a consistent quality among all of its workers as well as to be sure that it is complied with all regulations that might govern the job, the firms head mechanic would check the car before the client was called to pick up the vehicle. This process ensured that client was called to pick up the vehicle. This process ensured that clients saw all the shops workers and contractors as equivalent quality.

Dalia is laid in the middle of the job, and she files for unemployment compensation. The shop defends the claim, arguing that she was not an employee.

1. What is Dalias status in the auto repair shop? Can she claim for unemployment compensation? Why or Why not? Provide your reasons.
2. Was Dalia an employee or an independent contractor?
Length of assignment 1 pages (12 font size, 1 space)