State ex rel. Nese v. State Teachers Retirement Bd. of Ohio
136 Ohio St. 3d 103
| Ohio | 2013Background
- Jefferson County ESC operates a Virtual Learning Academy (VLA) using instructors who are licensed teachers; VLA is an online program acting as an educational option rather than a school.
- In 2003-2009, VLA instructors were either paid via stipends or through forms (1099 then W-2) with STRS contributions initially withheld then refunded after STRS deemed them independent contractors.
- STRS concluded in 2008 that the VLA instructors were independent contractors, refunded Jefferson County ESC contributions, and the ESC later issued duties/resolutions and evaluations after that determination.
- Nese, Williams, and Miles (VLA instructors) filed mandamus petitions in 2009 seeking STRS to accept employer/employee contributions and to include VLA compensation in retirement calculations.
- The trial court denied relief; the court of appeals affirmed, holding there was some evidence to support STRS’s independent-contractor finding; the Supreme Court affirmed, sustaining STRS’s decision.
- Dissent would have held the relators were teachers under RC 3307.01(B)(5) and erred in approving STRS’s independent-contractor finding.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether STRS abused its discretion in classifying VLA instructors as independent contractors | Nese Williams Miles | STRS | No abuse; some evidence supports independent-contractor finding |
| Whether relators qualify as “teachers” under RC 3307.01(B)(5) | Relators are teachers via licensure and service in a state-supported agency | Stricter interpretation; need employee status or contractual control | Relators not established as teachers under statute; Board supported by evidence |
| Whether mandamus proper to compel STRS to accept contributions and adjust retirement calculations | Mandamus appropriate due to lack of adequate legal remedy | Abuse-of-discretion standard applies; relief denied absent clear error | Mandamus denied; STRS decision not shown to be abuse of discretion |
Key Cases Cited
- Gillum v. Indus. Comm., 141 Ohio St.373 (1943) (control over means/manner determines employee status)
- Bobik v. Indus. Comm., 146 Ohio St.187 (1946) (right to control the manner of performance tests employee status)
- Schaengold v. Ohio Pub. Emps. Retirement Sys., 114 Ohio St.3d 147 (2007-Ohio-3760) (some evidence suffices to uphold retirement-board determinations; abuse limited)
- State ex rel. Marchiano v. School Emps. Retirement Sys., 121 Ohio St.3d 139 (2009-Ohio-307) (abuse-of-discretion standard; deference to board; some evidence suffices)
- State ex rel. Husted v. Brunner, 123 Ohio St.3d 288 (2009-Ohio-5327) (clear and convincing standard for mandamus relief; evidence standard explained)