Tracy v. Unemployment Compensation Board of Review
23 A.3d 612
| Pa. Commw. Ct. | 2011Background
- Tracy, a Illinois attorney, ran for Lieutenant Governor in 2010 and hired Barrett as campaign manager for Jan 3–Feb 2, 2010 at $3,000 plus a cell phone stipend.
- Barrett filed for unemployment benefits with the Erie UC Center; the Center awarded benefits for weeks including Jan 9 and Jan 16–Feb 6, 2010, which Tracy appealed.
- The referee found Barrett was an independent contractor, not an employee, and eligible for benefits under §402(h).
- The Board affirmed, finding Barrett was subject to Tracy's control and not engaged in an independent business, thus not self-employed and ineligible under §4(l)(2)(B).
- Key witnesses testified regarding control: Tracy claimed no regular hours or training; Hodas testified that Barrett was an independent contractor; Barrett testified he worked daily but followed guidance rather than being tightly controlled.
- The Commonwealth Court reversed, holding the Board erred in applying the control/independence analysis and that Barrett was independent contractor, not an employee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Barrett was an independent contractor, not an employee | Tracy contends Barrett was an employee subject to control and direction | Board contends Barrett was not independently established and was controlled by Tracy | Court held Barrett was an independent contractor; error in Board's employee finding |
| Whether the record supports control by Tracy over Barrett | Tracy argues lack of regular supervision and hours indicates no control | Board argues Barrett was under Tracy's control and direction | Court found insufficient evidence of control to establish an employee relationship |
Key Cases Cited
- Beacon Flag Car Co. v. Unemployment Comp. Bd. of Review, 910 A.2d 103 (Pa. Cmwlth. 2006) (employer-employee determination framework)
- Venango Newspapers v. Unemployment Comp. Bd. of Review, 158 Pa.Cmwlth. 379, 631 A.2d 1384 (Pa. Cmwlth. 1993) (profit/loss risk and independent business factors guide self-employment inquiry)
- Pavalonis v. Unemployment Comp. Bd. of Review, 57 Pa.Cmwlth. 289, 426 A.2d 215 (Pa. Cmwlth. 1981) (factors including training and hours influence employee status)
- CE Credits Online v. Unemployment Comp. Bd. of Review, 946 A.2d 1162 (Pa. Cmwlth. 2008) (control and independence assessed in totality of relationship)
- Glatfelter Barber Shop v. Unemployment Comp. Bd. of Review, 957 A.2d 786 (Pa. Cmwlth. 2008) (profit/loss risk as indicator of independent business)
- Erie Independence House, Inc. v. Unemployment Comp. Bd. of Review, 126 Pa. Cmwlth. 358, 559 A.2d 994 (Pa. Cmwlth. 1989) (control encompasses both nature of work and manner of performance)
- Buchanan v. Unemployment Comp. Bd. of Review, 135 Pa.Cmwlth. 567, 581 A.2d 1005 (Pa. Cmwlth. 1990) (employee/self-employment determination is a question of law subject to review)