Anderson v. Homeless & Housing CoaAnderson v. Homeless & Housing Coa
Lead Opinion
OPINION OF THE COURT
The claimant was born in 1938 and has a high school education as well as six months of computer training. He worked as a coal miner, gas station owner, supply clerk, painter, the owner of an instrument panels company, and for 21 years as a hardware store owner before becoming “burned out on business” and deciding that he “wanted to volunteer some time.” The claimant thought that it was in August, 1997, that he contacted HHCK, applied to become an AmeriCorps volunteer, was accepted into the program, and signed a member participation agreement. He worked as a construction supervisor, overseeing as many as twenty other individuals. The claimant testified that he knew he would receive some payment for his services, but he did not remember being told about short term disability or other benefits. Although he was informed that he would be covered if he were hurt on the job, he admitted that he was not told specifically that it would be through workers’ compensation. However, his understanding was that he would be covered by workеrs’ compensation. Throughout his testimony, he referred to himself as a “volunteer.”
On October 28, 1998, the claimant fell through a ventilation hole in the ceiling of a home on which he was working and injured his left knee, causing him to miss about a month’s work. He continued working until his second term ended in August, 1999, at which time he became manager of the local YMCA, earning $18,000.00 per year. In July, 2001, he retired at the age of 62. He testified that he did so because the walking and climbing that were required had become too difficult and that he had neither worked nor sought employment since then. His medical expenses following the accident were paid by HHCK through an accidental medical expense insurance policy. The claimant’s application of workers’ compensation benefits listed only his spouse as a dependent.
Judith Levey, the Executive Director of HHCK, testified that the organization is a nonprofit corporation that receives and administers grants from the Department of Housing and Urban Development and from AmeriCorps. Its goal is to provide affordable housing for low-income Kentuckians. She testified that the claimant was a member of AmeriCorps, a national volunteer program, from October 7, 1997, through August 31, 1998, and from September 1, 1998, through August, 1999. Ms. Levey indicated that members of the program must undergo an application process and satisfy certain requirements as established by the National and Community Service Act of 1990. See
Ms. Levey testified that the stipend for AmeriCorps members at the relevant time was $8,340.00. It was paid by HHCK but funded by AmeriCorps. When asked why the claimant’s W-2 for 1998 showed earnings of $15,652.08, she explained that Pike-ville Habitat for Humanity provided HHCK with an extra $6,660.00, which increased his living allowance to $15,000.00, and that the remaining $652.08 may have been for mileage reimbursement. She stated that some sponsors provide extra funds for the living allowance because of difficulties in finding local housing or simply because the organization is able to provide additional hеlp to the AmeriCorps member. When asked why the claimant’s W-2 indicated that he was an employee, she responded that HHCK viewed him as being a volunteer who worked for aid and sustenance only.
Appended to Ms. Levey’s deposition were copies of the agreements that the claimant signed on December 8, 1997, and July 20, 1998. Both agreements referred to the claimant as a “member.” Among other things, they provided that a member was entitled to receive an annual taxable living allowance of $8,340.00 and applicable FICA, income taxes, and unemployment insurance; heаlth care insurance; a child care allowance, if the member qualified; mileage and expense reimbursement and, in certain instances, an advance for travel, lodging and meals; occupational accidental death and dismemberment coverage; and, upon successful completion of the program, a taxable education award of $4,725.00. In return, the member agreed to provide 1,700 hours of service within the agreement’s one-year period and to abide by certain rules of conduct.
The following shall constitute employees subject to thе provisions of this chapter, except as exempted underKRS 342.650 :
(1) Every person, including a minor, whether lawfully or unlawfully employed, in the service of an employer under any contract of hire or apprenticeship, express or implied, and all helpers and assistants of employees, whether paid by the employer or the employee, if employed with the knowledge, actual or constructive of the employer;
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(3) Every person in the service of the state or any of its political subdivisions or agencies, or of any county, city of any class, school district, drainage district, tax district, public or quasipublic corporation, or other political entity, under any contract of hire, express or implied, and every official or officer of thoseentities, whether elected or appointed, while performing his official duties shall be considered an employee of the state...
(4) Every person performing service in the course of the trade, business, profession, or occupation of an employer at the time of the injury[.]
(3) Any person performing services in return for aid or sustenance only, received from any rеligious or charitable organization.
Neither
Arguing that he was not exempt from coverage under Chapter 342, the claimant relies upon Sears v. Oakwood Training Facility Department of Human Resources, Ky.App.,
Although the fact-finder determined that Ms. Sears was not an employee within the meaning of
Unlike Ms. Sears, the claimant does not argue that he was employed by a state agency. Furthermore, it is undisputed that HHCK is a non-profit charitable organization that provides low-income housing. Although
The clаimant acknowledges that the Act does not define the term “for aid or sustenance only” but argues that it “means something much less than money, insurance benefits, health benefits, child care benefits, meals, lodging, travel, and unemployment insurance.” He also argues that HHCK “made him an employee” by mandating how long and how much he would work, how much training he must complete, and how he must act while participating in the program, requirements that he asserts go beyond what is expected of a volunteer. Finally, the claimant asserts that because his contract with HHCK entitled him to receive unemployment insurance, an employer/employee relationship must have existed.
A purpose of the National and Community Service Act of 1990 is to encourage citizens, regardless of their age or income, to perform community service without displacing existing workers. See
We have found no clear indication that congress intended for the National and Cоmmunity Service Act to preempt state workers’ compensation law. Although
To the extent a national service program that receives assistance under section 12571 of this title is subject, with respect to the participants in the program, to the taxes imposed on an employer under sections 3111 [social security] and 3301 [unemployment] of Title 26 and taxes imposed on an employer under a workmen’s compensation act, the assistance provided to the program under section 12571 of this title shall include anamount sufficient to cover 85 percent of such taxes_(Emphasis added.)
Thus, despite the mandatory language of
Arthur Larson and Lex K. Larson, Larson’s Workers’ Compensation Law, §§ 65.00 and 65.01 (2003), explains that those who work gratuitously are not considered to be employees because there is no contract for hire. When determining whether work is truly gratuitous, paymеnt may be found in anything of value, including food and shelter, and an agreement to pay is usually implied where there is no express agreement concerning payment. Where public-service or charitable duties are performed voluntarily and gratuitously, there is no presumption that payment is expected. The workers’ compensation statutes of a number of jurisdictions exclude from coverage those individuals who work for charitable or religious organizations. Id. at § 72.04(1). Other statutes, such as Kentucky’s, limit the exclusion to those who work for a charitable or religious organizatiоn and receive “aid or sustenance only” in return.
Our research indicates that the workers’ compensation statutes of four other states exclude individuals who work “for aid or sustenance.” Montana’s statute does not limit the exclusion for those who work “for aid or sustenance only” to individuals who work for religious or charitable organizations. On the other hand, California, Maryland, and Washington have statutes that are either identical or nearly identical to
The Montana Supreme Court has considered two cases and reached the opposite result. In Carlson v. Cain,
In contrast, in Hammer v. Uninsured Employers’ Fund,
Several California cases have addressed the exclusion of certain individuals who worked for religious or charitable organizations. In Hartford A. & I. Co. v. Industrial Accident Commission.,
In State of California Subsequent Injuries Fund v. Industrial Accident Commission,
In Hoppmann v. Workers’ Compensation Appeals Board,
The court determined that application of the “aid оr sustenance” exclusion did not depend on whether payment was made in cash or in kind. Likening the exclusion to the “voluntary service” exclusion provided by another subsection of the California statute, the court explained that voluntary service was gratuitous and performed with no expectation of payment other than an
Under
What income level is required to provide the necessities of life is open to debate. We note, however, that when the claimant was injured, the federal minimum wage was $5.15 per hour. The poverty threshold for a family of two was $10,972.00 or $10,850.00, depending upon whether the U.S. Census Bureau or the Department of Health аnd Human Services tables are used. The claimant’s contract with HHCK required him to work 1,700 hours over a one-year period. In addition to health insurance, accidental death and dismemberment insurance, an education award, and various non-cash benefits, HHCK paid him a mileage reimbursement of $652.08 and a cash living allowance of $15,000.00. It is apparent, therefore, that the value of the payments he received in cash and in kind went far beyond what was necessary for him to subsist. Regardless of what might be the case with other AmeriCorps participants, it could not reasonably be said that the claimant worked for HHCK in exchange “for aid or sustenance only.”
The decision of the Court of Appeals is reversed, and the claim is remanded to an AL J for further consideration.
Notes
. Current regulations governing the Foster Grandparents Program specify that foster grandparents are not employees of the federal government, sponsor, or volunteer station and that cost reimbursements of foster grandparents "are not subject to any tax or charge or treated as wages or compensation fоr the purposes of ... workers’ compensation ...”
Dissenting Opinion
dissenting.
I dissent because federal law preempts us from construing our Workers’ Compensation Act to create an employer/employee relationship between an AmeriCorps volunteer and the volunteer’s AmeriCorps contracting agency, e.g., Homeless and Housing Coalition of Kentucky (HHCK). AmeriCorps was created under the National and Community Service Act of 1990 (NCSA).
(17) Participant
(A) In general
The term “participant” means—
(i) for purpоses of division C of this subchapter, an individual in an approved national service position; and
(ii) for purposes of any other provision of this chapter, an individual enrolled in a program that receives assistance under this subchapter.
(B) Rule
A participant shall not be considered to be an employee of the program in which the participant is enrolled.
(Emphasis added.)
A situation similar to the case sub judice arose in Twombly v. Ass’n of Farmworker Opportunity Programs,
Imposing a duty upon HHCK tо provide Appellant with workers’ compensation coverage by categorizing him as an employee of HHCK is preempted by the NCSA.
“[W]here the federal government, in the exercise of its superior authority in this field, has enacted a complete scheme of regulation and has therein provided a standard ..., states cannot, inconsistently with the purpose of Congress, conflict or interfere with, curtail or complement, the federal law, or enforce additional or auxiliary regulations.”
Hines v. Davidowitz,
(1) [M]eet the unmet human, educational, environmental, and public safety needs of the United States, without displacing existing workers;
(2) renew the ethic of civic responsibility and the spirit of community throughout the United States;
(3) expand educational opportunity by rewarding individuals who participate in national service with an increased ability tо pursue higher education or job training;
(4) encourage citizens of the United States, regardless of age, income, or disability, to engage in full-time or part-time national service;
(5) reinvent government to eliminate duplication, support locally established initiatives, require measurable goals for performance, and offer flexibility in meeting those goals;
(6) expand and strengthen existing service programs with demonstrated experience in providing structured service opportunities with visible benefits to the participants and community;
(7) build on the existing organizational service infrastructure of Federal, State, and local programs and agencies to expand full-time and part-time service opportunities for all citizens; and
(8) provide tangible benefits to the communities in which national service is performed.
Accordingly, I dissent.
KELLER, J., joins this dissenting opinion.