Options v. Unemployment Compensation Board of Review
57 A.3d 655
| Pa. Commw. Ct. | 2012Background
- Claimant Jamal Mack worked as a direct care worker for Quality Care Options (Company) from 2005 onward, with services performed for clients of Company.
- Company is a healthcare staffing agency; it matches healthcare workers with client facilities and pays workers by the hour, issuing Form 1099 and taking a share of fees from clients.
- Claimant applied for unemployment compensation in June 2011; the initial grant was contested by Company, which argued Claimant was an independent contractor.
- A referee found in 2011 that Claimant performed services as a direct care worker, was paid hourly, could accept or refuse offers, and signed an independent contractor agreement; the client controlled time/place/manner and supervision.
- The Board adopted the referee’s findings, and Company appealed, arguing Claimant was an independent contractor and thus ineligible under 402(h).
- The Majority reversed, holding that the client, not Company, controlled essential aspects of Claimant’s work and that the Independent Contractor Agreement supported independent-contractor status; the Board’s conclusions about independence and self-employment were reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Claimant was self-employed under 402(h). | Mack contends he is an independent contractor; the record shows he could work for others and was not under Company’s control. | Company argues Mack was under its control and thus an employee; the agreement and client-directed tasks show lack of independent status. | Board erred; Claimant was not an employee of Company. |
Key Cases Cited
- Resource Staffing, Inc. v. Unemployment Comp. Bd. of Review, 995 A.2d 887 (Pa.Cmwlth.2010) (contractor agreement supports non-control over manner of work)
- Danielle Viktor, Ltd. v. Department of Labor & Industry, Bureau of Employer Tax Operations, 586 Pa. 196 (Pa. 2006) (limousine drivers as independent contractors; joint factors for independence)
- Pasour v. Unemployment Comp. Bd. of Review, 54 A.3d 134 (Pa.Cmwlth.2012) (two-pronged test requires freedom from control and independent trade)
- Jia v. Unemployment Compensation Bd. of Review, 55 A.3d 545 (Pa.Cmwlth.2012) (independence prerequisite to self-employment; independent trade)
- Minelli v. Unemployment Compensation Bd. of Review, 39 A.3d 593 (Pa.Cmwlth.2012) (as-needed work insufficient to prove independent trade)
- Stage Road Poultry Catchers v. Dep’t of Labor & Indus., Office of Unemployment Comp., Tax Servs., 34 A.3d 876 (Pa.Cmwlth.2011) (recognizes independent-contractor analysis under 402(h) two-prong test)