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    Choo Choo Rides offers individuals the opportunity to develop their own business by utilizing their own vehicles as a transportation alternative for customers who need a ride. Choo Choo requires drivers to wear a train hat, install a train whistle on the vehicle, utilize Choo Choo’s proprietary GPS-based customer ordering system, and make themselves available for rides at least 4 hours per day and 3 days per week. Choo Choo sets the pricing for all rides through its proprietary software program. The driver receives 80% of the cost of each ride and 100% of all gratuities. Choo Choo collects 20% of the cost of each ride. Are Choo Choo drivers employees or independent contractors? Explain. Which of these distinctions is to the advantage of Choo Choo and which is more advantageous to the drivers? Support your position.

    WeGotApps, a revolutionary software application development company, is developing rapidly and hiring hundreds of new employees every month. The CEO places a premium on software programmers, but tends to ignore administrative functions such as human resources. In fact, the CEO instructs his managers to begin monitoring all electronic communications and social media posts of WeGotApps employees without alerting the employees to this fact; he wants to know which employees he can trust and which employees he might want to release. What issues might the CEO encounter by taking this approach to human resources management? Can these potential issues be mitigated through a course of action other than creating a human resources function, or is a human resources function a necessity for the continued development and success of the business? Explain.



Subject Business Pages 3 Style APA




  • Drivers use their own vehicles
  • The company exercises minimal control over the drivers.
  • Most of the proceeds from the venture go to the drivers.


It is not clearly apparent whether the drivers are employees of independent contractors. To clarify this issue, there would be need to look at the contract of employment.


The company exercises some degree of control by dint of the fact that the drivers are compulsorily required to be available at least 4 hours a day, in three days of the week. This means that they may optionally be required to be available for more hours and more days. This means that there is some element of control exercised by the employer. Further, the skills employed by the drivers is an integral part of the organization and they apply their skills “in consideration of a wage” (Lockton, 2005, p. 26). It can therefore easily be inferred that they are employees and if this inference is made, it will be to the benefit of the drivers since in case any tort is committed, the company will be liable. On the other hand, if they are independent contractors such benefit will fall on the company since there will be no procedure for termination of employment and in case a tort is committed the drivers will be personally liable.


Due to the lack of clarity as regards the status of the drivers, the business may be left vulnerable because the drivers can resolve to operating as per the set minimum standards and this may be to the detriment of the business.



The advantage of this modality of human resource development is that the company has a sure way of distinguishing between employees that are devoted to the firm and those that are not devoted. The company also does not have to utilize so many resources in this venture.


Since the company does not have a social media policy and the employees have not been informed about the review of their social media posts, the company may not have the onus to formally use that information to the detriment of the employees.


Since the employees who talk negatively about the company or their employer on social media may not have raised that issue before their employer before, they will not be said to be, “vocalizing the sentiments of co-workers” on social media, thus the company will reserve the right to fire based on social media postings (Hill, 2011, pg. 2).


Ignoring administrative functions such as human resource management is akin to lack of continued development and success for the business since the company may lack the capacity to build and retain a working and effective pool of workers yet this is an asset that cannot be ignored.


Lockton, D. (2005). Employment Law. Psychology Press.

Hill, K. (2011). When You Can and Can’t Fire Employees For Social Media Misbehavior. Forbes Magazine. Retrieved from https://www.forbes.com/sites/kashmirhill/2011/08/25/when-you-can-and-cant-fire-employees-for-social-media-misbehavior/#2b6ceba373b1





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