Career Development Center, Inc. v. Virginia Employment Commission
0420212
Va. Ct. App.Dec 14, 2021Background:
- Career Development Center, Inc. (CDC) is a union-operated nonprofit that provides vocational classes to Goodyear union members; it hires outside instructors for short, varied courses.
- Christopher Walker, a welding instructor, taught classes initially via GreenWood, then entered a written CDC "Instruction Agreement" hiring him April–July 2017.
- The agreement required Walker to design courses, prepare a syllabus, collect evaluations, and teach personally; CDC scheduled classes, supplied materials, determined students, and could not be assigned without consent.
- The contract allowed either party to cancel on 30 days’ notice (CDC could cancel on 7 days for low enrollment/misconduct); Walker was paid hourly, plus $160 design fee and $40/day travel reimbursement.
- Walker filed for unemployment in Nov. 2017; a Field Tax Representative and then the Virginia Employment Commission (VEC) applied the IRS 20-factor test (per Code § 60.2-212(C)) and found 14 factors favoring employee status, 4 favoring independent-contractor status, and 2 inconclusive.
- The Circuit Court of the City of Richmond affirmed VEC’s decision; the Court of Appeals affirmed, holding VEC’s fact findings were supported by evidence and there was no legal error.
Issues:
| Issue | CDC's Argument | VEC's Argument | Held |
|---|---|---|---|
| Whether Walker was an employee or independent contractor under Code § 60.2-212(C) (20-factor IRS test) | Walker/CDC argued the relationship fit independent-contractor factors (e.g., no training, part-time, no reports) | VEC argued the preponderance of the 20 factors (14 of 20) showed employee status (e.g., integration, personal service, scheduling, expense payments, termination rights) | Court held VEC’s factor-by-factor findings were supported by evidence and, absent fraud, conclusive; Walker was an employee. |
| Whether the circuit court erred in affirming VEC (sufficiency of evidence / legal error) | CDC contended the circuit court should have reversed as VEC’s findings were unsupported and legally erroneous | VEC relied on statutory review limits (Code § 60.2-500(C)) and that the agency properly applied the 20-factor test | Court held the circuit court did not err: the agency’s factual findings were supported by evidence, no fraud alleged, and no legal error was shown. |
Key Cases Cited
- Va. Emp. Comm’n v. Porter-Blaine Corp., 27 Va. App. 153 (1998) (judicial review of VEC factual findings limited; findings conclusive if supported by evidence and absence of fraud)
- Intermodal Servs., Inc. v. Smith, 234 Va. 596 (1988) (distinguishes question of law from question of fact on employee status)
- Baker v. Nussman, 152 Va. 293 (1929) (employee classification principles)
- Brown v. Fox, 189 Va. 509 (1949) (worker status determined from particular facts)
- Va. Emp. Comm’n v. A.I.M. Corp., 225 Va. 338 (1983) (Act construed liberally; exemptions narrowly)
- Yard Bird, Inc. v. Va. Emp. Comm’n, 28 Va. App. 215 (1998) (burden shifts to employer to prove nonemployee status once VEC shows services for remuneration)
