863 To Go, Inc. v. Department of Labor
99 A.3d 629
Vt.2014Background
- 863 To Go, Inc. operates a Burlington-area food-delivery service with five groups: employer, contracted restaurants, Delivery Drivers, Inc. (DDI), the drivers, and consumers.
- Customers place orders by phone or website, paying the delivery charge and meal price; employer pays the restaurant and DDIs’ commissions.
- Delivery drivers are drawn from DDI’s pool and meet with employer representatives; drivers decide whether to accept assignments.
- Drivers do not take orders, set sale terms, or “sell” the product; they deliver and collect payment if needed.
- At night, drivers cash out; they keep tips and employer sends funds to DDI to cover their commissions and per-trip payments.
- The Vermont Employment Security Board concluded the drivers were not exempt as direct sellers; employer challenged, arguing the drivers were direct sellers under 21 V.S.A. § 1301(6)(C)(xxi).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether drivers qualify as direct sellers under 21 V.S.A. §1301(6)(C)(xxi). | To Go contends drivers meet direct-seller criteria. | Department argues drivers do not sell; exemption not met. | Not direct sellers; exemption not met; employer must contribute. |
Key Cases Cited
- Fleece on Earth v. Dep’t of Emp’t & Training, 181 Vt. 458 (2007) (Board’s deference and statutory interpretation principles applied)
- Blue v. Dep’t of Labor, 190 Vt. 228 (2011) (Board’s expertise in unemployment law upheld)
- Bouchard v. Dep’t of Emp’t & Training, 174 Vt. 588 (2002) (presumption that Board’s conclusions are correct)
- Smoky Mountain Secrets, Inc. v. United States, 910 F. Supp. 1316 (E.D. Tenn. 1995) (federal direct-seller analysis cited for comparison)
- In re Tariff Filing of Cent. Vt. Pub. Serv. Corp., 172 Vt. 14 (2001) (statutory interpretation framework referenced)
