Industrial Contractors, Inc. v. Taylor
2017 ND 183
| N.D. | 2017Background
- Taylor, hired via IBEW Local 714 referral, was injured on March 11, 2014 while working for Industrial Contractors on a scheduled power-plant shutdown; he was hired March 6, 2014 for work estimated to end May 16, 2014.
- WSI initially classified Taylor’s job as "seasonal employment" under N.D.C.C. § 65-01-02(27) and calculated benefits accordingly; Taylor requested a hearing.
- An independent ALJ ruled Taylor’s employment was not seasonal, finding electricians hired by Industrial Contractors on regular referrals customarily worked an indefinite duration and could be transferred between jobs.
- The district court affirmed the ALJ; Industrial Contractors appealed and WSI joined Industrial Contractors’ legal arguments on appeal.
- The North Dakota Supreme Court held the ALJ misapplied the statutory definition of "seasonal employment," reversed the district court, and remanded for recalculation of benefits in accordance with WSI’s original order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Taylor’s employment was "seasonal employment" under N.D.C.C. § 65-01-02(27) | Taylor: ALJ found electricians are regularly employed in a manner that is not seasonal; the occupation of electrician for this employer is carried on year-round | Industrial Contractors / WSI: the work was non‑permanent, project-based, and customary layoffs/short-term referrals make it seasonal | Court: statute’s definition includes occupations that are non‑permanent or do not customarily operate year‑round and is measured by what is customary with the employer; ALJ misapplied the statutory test and failed to give effect to the employer‑custom prong — reversed and remanded |
| Proper construction of "seasonal employment" statute | Taylor: ALJ applied employer‑custom evidence correctly to find occupation not seasonal | Industrial Contractors: statute allows seasonal classification based on employer’s customary practice of temporary/project hires | Court: interprets "includes occupations" as non‑exclusive; "seasonal" can mean (1) not permanent or (2) does not customarily operate throughout the year, and must be determined by what is customary with respect to the employer |
| Deference to agency or ALJ interpretations | Taylor: ALJ’s factual findings deserve deference on customary practice and credibility | Industrial Contractors/WSI: agency (WSI) interpretation that the job was seasonal is reasonable and entitled to deference | Court: legal conclusions by an independent ALJ receive no special deference; agency’s interpretation consistent with statute and ALJ misapplied law |
| Remedy / Benefit calculation | Taylor: benefits should be calculated based on ALJ’s non‑seasonal determination | Industrial Contractors/WSI: benefits should be calculated under seasonal formula originally applied by WSI | Held: reverse ALJ and district court; remand to agency to calculate benefits per WSI’s original seasonal determination |
Key Cases Cited
- Workforce Safety & Ins. v. Auck, 785 N.W.2d 186 (N.D. 2010) (standards for appellate review of administrative findings and legal conclusions)
- Turnbow v. Job Serv. of N.D., 479 N.W.2d 827 (N.D. 1992) (deference to agency interpretations where reasonable)
- Power Fuels, Inc. v. Elkin, 283 N.W.2d 214 (N.D. 1979) (standard for reviewing administrative factfinding)
- Pettis v. Indus. Comm’n of Ariz., 372 P.2d 72 (Ariz. 1962) (seasonal employment defined by operations limited to certain times)
- Murillo v. Payroll Express, 901 P.2d 751 (N.M. Ct. App. 1995) (use of common meaning of seasonal employment)
- Rogers v. Cedar Van Lines, Inc., 281 N.W.2d 669 (Minn. 1979) (seasonal employment tied to occupations not customarily operating year‑round)