State ex rel. Sales v. Ohio Pub. Emps. Retirement Bd. (Slip Opinion)
128 N.E.3d 216
Ohio2019Background
- Gary N. Sales, a board-certified psychiatrist, worked at Lorain Correctional Institution under a series of written "Personal Service" contracts from 1997 until February 2003 that labeled him an "Independent Contractor."
- Contracts set hourly rates, limited hours, required Sales to submit invoices for payment, and excluded him from fringe benefits, workers' compensation, and payroll.
- Sales requested OPERS membership and service credit in 2014; OPERS denied the request based on contract terms, tax reporting (1099), lack of benefits, and lack of employer control over clinical decisions.
- A hearing examiner and the OPERS board found Sales was an independent contractor; Sales sought a writ of mandamus in the Tenth District Court of Appeals.
- The court of appeals (2–1) granted the writ, finding indicia of employment (badge, time clock, training, scheduling, adherence to ODRC policies). OPERS and ODRC appealed to the Ohio Supreme Court.
- The Supreme Court reversed, holding OPERS had "some evidence" supporting its conclusion that Sales was an independent contractor and denied the writ.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Sales was a "public employee" eligible for OPERS membership or an independent contractor excluded from membership | Sales: institutional controls (badge, clock-in/out, required training, scheduling, use of facility equipment, adherence to ODRC policies) show an employer–employee relationship | OPERS/ODRC: contract language, invoice-based payment, 1099 reporting, ineligibility for benefits/workers' comp, and clinical independence show independent-contractor status; security rules reflect institutional safety, not control of professional duties | Held: OPERS did not abuse its discretion; there was "some evidence" supporting the independent-contractor determination, so no mandamus relief |
| Applicable standard of review for OPERS decisions | Sales: (implicitly) OPERS erred as a matter of law in weighing indicia of employment | OPERS: decision reviewed for abuse of discretion; only absence of any supporting evidence warrants mandamus | Held: Standard is abuse of discretion ("some evidence" suffices); OPERS decision was supported by some evidence and not unreasonable |
Key Cases Cited
- State ex rel. Pipoly v. State Teachers Retirement Sys., 95 Ohio St.3d 327 (2002) (mandamus available to correct administrative abuse when no statutory appeal)
- State ex rel. Cydrus v. Ohio Pub. Emps. Retirement Sys., 127 Ohio St.3d 257 (2010) (mandamus to review OPERS eligibility decisions)
- State ex rel. Hughes v. Ohio Pub. Emps. Retirement Sys., 36 Ohio St.3d 11 (1988) (mandamus appropriate to correct OPERS abuse of discretion)
- State ex rel. Shisler v. Ohio Pub. Emps. Retirement Sys., 122 Ohio St.3d 148 (2009) (abuse of discretion defined as unreasonable, arbitrary, or unconscionable)
- State ex rel. Nese v. State Teachers’ Retirement Bd. of Ohio, 136 Ohio St.3d 103 (2013) (OPERS board abuses discretion if order not supported by some evidence)
- State ex rel. Schaengold v. Ohio Pub. Emps. Retirement Sys., 114 Ohio St.3d 147 (2007) (OPERS may weigh regulatory factors to distinguish independent contractor from contract employee)
- State ex rel. Ingold v. Ormet Corp., 39 Ohio St.3d 353 (1988) (factfinding and evidence-weighting lie with the agency)
- State ex rel. Frigidaire Div., Gen. Motors Corp. v. Indus. Comm., 35 Ohio St.3d 105 (1988) (same)
