This assignment allows you to demonstrate mastery of the following course outcomes:

#1: Analyze employment law and its applications and implications

#2: Evaluate rights, obligations, and liabilities in the employment process and relationship.

#4: Effectively communicate to internal and external audiences the principles and application of employment law in the business environment In the workplace.

Schultz v. Capital International Security, Inc.

460 F.3d 595 (4th Cir. 2006)

Facts: The plaintiff-agents provided security services for Schultz and his family at his Virginia residence in twelve-hour shifts. The agents were paid a daily rate for each shift; they received no extra pay for overtime. The agents had a command post at the residence, from which they observed security camera monitors, answered the telephone and kept a daily log of all arrivals and departures. They also made hourly walks of the property, ensured that members of his family were safe when departing and arriving, sorted mail, and performed various tasks upon request of his family. In addition to their security duties, the agents were responsible for having the household’s vehicles washed and fueled, making wake-up calls, moving furniture, and doing research on the Internet.

Schultz’s long-time driver and travel agent, Sammy Hebri, formed a company called Capital International Security, Inc. (CIS). Hebri started CIS for the purpose of becoming Schultz’s security contractor.

Hebri sent a memo (dated July 24, 2002) to the agents directing them to obtain their own private security business licenses from the VDCJS and individual liability insurance so they could be classified as independent contractors.

Issue: The issue is whether the bodyguards were considered to be employees or independent contractors for the purpose of the Fair Labor Standards Act.

You must respond to all questions below. You must use at least three sources from the class materials and do independent research. Do not combine the discussion questions and please use the outline below for your paper. Use of the outline will help you organize your research and comments and ensure you do not miss any questions that must be addressed. Your responses to each question must be in a narrative format, not bullets. Must use the underlined headings below as separate headings in your paper. Failure to follow these instructions will result in a penalty of -1.25pts.

1) Summary.

a. Summarize the relevant facts of the case. What is your opinion on the outcome of this case?

b. THEN, go to and respond: What was the actual outcome? Why? Be specific.

2) Classification Test. In the above case, what kind of classification test could have been used and what would be the result? (

3) a. Under Virginia state law would the result be the same, why or why not? Be specific.

b. Discuss if any of the Virginia exemptions for employee classification apply in this scenario or not? Be specific.

4) a. Under Virginia law, are independent contractor’s eligible for worker’s compensation? Why or why not? Be specific.

b. What are the consequences for a Virginia employer misclassifying an employee as an independent contractor? Be specific.

c. What specific benefits would an employer gain by such misclassification? Be specific.

5) Three Preventive Steps. Identify and discuss in detail three steps that could have prevented the type of situation discussed in the scenario from happening again. The steps should be feasible, clear and legal.

The paper must be:

  • Be sure and use the underlined headings found in the outline above in your paper or lose 1.25pts from a score.
  • The paper must be in a narrative format, not bullets.
  • Double spaced
  • Late penalties: Paper is due by the due date but if there occurs an extraordinary event beyond your control, then you need to contact me as to the reason and then we can discuss a new due date if I agree with your excuse. In every case of an extension, you will be still be penalized 11% [-2.75pts, no chance for an A, for failing to submit the paper by the due date and time and -.5pt for each additional day late, no matter the excuse]. There are 25pts in the rubric so if one day late you will lose -2.75pts. Which equates to an 89B before the paper is even graded.
  • Include a cover page which should have student name and title of your paper.
  • Be prepared using word-processing software and saved with a .doc, .docx, or .rtf extension. No pdf.
  • Be uploaded to your Assignments Folder by 23:59 p.m. eastern time on the due date.
  • The paper is to be posted in Assignment #1 drop box.
  • Must provide source of authority for all facts stated in the paper. For example use sequential numbers starting with (1), (2), etc and these numbers should correspond to full citation at the end of the paper. Do not put full citation of authority in body of the paper, just a number that corresponds to the full citation at the end of the paper. See examples below:
  • In the body of the paper example of citation of authority designation:

(1), (2), (3), etc.

Full Citation of Authority at the end of the entire paper. Citation of authority must be accessible to me without having to pay for it.

(1). Employment Law: Last, F. M. (Year Published) Book. City, State: Publisher [provide accessible link].


(3). Smith, Stan M. “Internship vs Employee” Washington Post, Jan 5, 2018 [provide accessible link].

Or here is a link to the APA citation generator. Much better than the citation generator in Microsoft Word. You can use my example above or this APA link. I am more concerned with the substance of the information than the form of the paper.

Except where noted, the assignment is written in a clear, concise narrative. All sections of Assignment #2 are required.

The grading rubric for this assignment is in the Assignment Folder or can be opened by clicking on the ‘Assignment #1 Grading Rubric’ tab in the lower right corner of the screen if you opened the Assignment in Content.

  • Submit your assignment into Turnitin to receive your Turnitin score before submitting to the assignment folder.