Final answer:
Independent contractors are entities contracted to perform work as non-employees who are not entitled to severance pay, as they don't receive the same benefits as traditional employees. The fairness of Tennessee Technological University's decision to lay off custodians is subjective and varies based on perspective.
Step-by-step explanation:
Independent contractors are self-employed individuals or entities contracted to perform work for another entity as non-employees. As such, they are responsible for paying their own Social Security and Medicare taxes. Unlike traditional employees, independent contractors do not typically receive benefits such as health insurance or retirement plans, nor are they covered by minimum wage, overtime protections, or severance pay upon termination of the contract.
In the case of Tennessee Technological University opting to lay off custodians and outsource the work, the decision revolves around cost-cutting measures. While private job agencies might offer lower hourly wages, this scenario highlights the broader issue of whether such decisions are fair. Unfortunately, the definition of fairness is subjective and varies based on the perspective of the involved parties. Former employees might see it as unfair due to loss of job security and benefits, while the university might argue the decision is necessary for financial sustainability.