Peidong Jia v. Unemployment Compensation Board of Review
2012 Pa. Commw. LEXIS 322
| Pa. Commw. Ct. | 2012Background
- Claimant Jia seeks UC benefits after the Board denied them as self-employment under 402(h) and 4(l)(2)(B).
- A referee initially found Jia was an employee; the Board reversed, finding Jia an independent contractor based on nine findings of fact.
- Evidence showed a consultant contract, hours the claimant must work at Employer’s office, time-tracking by Jia, and 1099 tax reporting.
- Employer argued Jia’s control and ability to work for others indicated independent business; Jia claimed lack of control and independence.
- The court reversed the Board, concluding the Board erred in treating Jia as an independent contractor and failed to show he customarily engaged in an independent trade.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Board properly classified Jia as independent contractor | Jia argues he was not engaged in an independent business | Quality Data Services argues Jia operated as an independent contractor | No; Board error in independent-contractor finding |
| Whether the presumption of employment was overcome | Jia contends employer failed to show independent trade | Employer asserts sufficient evidence of independent contractor status | No; record lacks evidence Jia regularly engaged in an independent business |
| Whether contract form alone determines status | Signing a consultant contract does not prove independence | Contract shows independent engagement | No; contract language insufficient without supporting independent-trade evidence |
Key Cases Cited
- Beacon Flag Co. v. Unemployment Comp. Bd. of Review, 910 A.2d 103 (Pa.Cmwlth.2006) (defines self-employment gap in statute 4(l)(2)(B))
- Kurbatov v. Dep’t of Labor & Indus., 29 A.3d 66 (Pa.Cmwlth.2011) (employer must show absence of control and ongoing independent trade)
- Minelli v. Unemployment Compensation Bd. of Review, 39 A.3d 593 (Pa.Cmwlth.2012) (contract alone not determinative; evidence of independent business needed)
- Sharp Equip. Co. v. Unemployment Comp. Bd. of Review, 808 A.2d 1019 (Pa.Cmwlth.2002) (employer must show lack of control and work for others as part of independent trade)
- Venango Newspapers v. Unemployment Comp. Bd. of Review, 158 Pa.Cmwlth. 379, 631 A.2d 1384 (Pa.Cmwlth.1993) (factors for independent contractor status include control and business nature)