Final answer:
Gene's stipulation of hours, training, and work methods for licensees endangers their status as independent contractors, shifting towards an employee relationship. Market forces often incentivize businesses to adopt less discriminatory practices, maintaining customer bases and addressing worker shortages without bias.
Step-by-step explanation:
Gene is jeopardizing his licensees' independent contractor status by enforcing strict work hours, mandatory attendance at training, and prescribed work methods. Although principals or brokers can set certain policies, excessive control over the licensees' activities can shift the legal definition towards that of an employee relationship, which can have tax and legal implications for both the brokerage and the licensees. The concept of licensees as independent contractors is typically characterized by freedom to set their own work hours, methods, and participation in training, as long as they follow professional guidelines and legal requirements pertinent to their field.
To avoid discrimination and foster an inclusive workplace, Gene should balance the need for quality control and adherence to regulations with maintaining the independence of his licensees. Market forces incentivize non-discriminatory practices, as seen in the examples provided:
- A local flower delivery business might lose a significant portion of its customer base if the owner's bigotry leads to discriminatory practices against black customers, who make up a substantial part of the local market.
- An assembly line struggling to hire qualified workers may start hiring women, thus creating a more diverse and capable workforce due to the necessity of filling labor shortages.
- A home health care firm might face legal challenges and public backlash if it discriminates in wage practices, making it more prudent to offer equal pay to all workers, regardless of ethnicity.