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Bluff's Vision Clinic, P.C. v. Krzyzanowski
555 N.W.2d 556
Neb.
1996
Check Treatment

*1 18, 1996, Jacobs filed a surrender voluntary On October In surren- voluntarily to law Nebraska. practice his license $260,000 license, that he borrowed Jacobs admitted dering his client while note from a represent- on an unsecured promissory admitted that he client in a different matter. Jacobs also ing client collateral for the note or to did not advise the to require legal obtain advice. independent license, that his failure to In his surrender of Jacobs stated the lack of collateral on the note and regarding advise client his advice the need for constituted violation of independent legal 5-104(A), DR of the Code of Professional Canon Responsi- 5-104(A) DR the Nebraska Court. bility Supreme adopted enter shall not into a business transac- lawyer provides “[a] client if have therein and if differing tion with a interests the client or her lawyer exercise his expects professional client, therein for the unless the judgment protection after full client has consented disclosure.” that he filing Jacobs admits his knowingly voluntarily surrenders his license to law and consents to the practice entry of an order of disbarment. Jacobs also freely, knowingly, notice, waives his voluntarily right appearance, hearing to the of such entry order. prior We Jacobs’ surrender of his license to accept practice law Nebraska and order him disbarred from the of law in practice Nebraska, the State of effective immediately.

Judgment of disbarment. J., not participating. Fahrnbruch, Clinic, P.C., appellee, Bluff’s Vision appellant. Krzyzanowski, Susan 555 N.W.2d 556 Filed November 1996. No. S-94-787. *2 Mullin, Petitt, Holyoke, Steenberg, Chaloupka, Van J.

Tylor P.C., Hofmeister, Smith, Pahfke, appellant. & Snyder Jr., Simmons, Olsen, Howard W. and M. Worden James P.C., Selzer, for appellee. & Olsen, Carney, Ferguson Ediger, Connolly, Lanpher, Wright, C.J., Capórale, White, JJ., Rist, D.J. Gerrard,

Lanpher, J. her against filed a complaint Krzyzanowski Susan

Appellant Clinic, (Bluff’s), PC. Bluff’s Vision appellee employer, Fair the Nebraska pursuant discrimination employment (Act), et Practice Act Neb. Rev. Stat. 48-1101 Employment (Reissue 1993). a hearing, After the Nebraska seq. Equal (NEOC) found that Commission Bluff’s was Opportunity Act, as defined in it and a “related” because “employer” Inc., Meat entity, together statutory The Shoppe, employed each or more week the time during people period court, Bluff’s to the district which appealed found question. that Bluff’s was not an it did not “employer” because employ it and that with the other combining entity was people improper. counting At issue is method of employees: “payroll” method, the count of those on the each or the payroll day, method, the count of those who show “workplace” actually up each day. to work to the Krzyzanowski Nebraska appealed Court of which found Appeals, using by method, Bluff’s did meet statutory definition of “employer.” Vision Clinic v. Krzyzanowski, 4 Neb. App. Bluff’s N.W.2d 761 Bluff’s for further petitioned review of that conclude, method, order. We also using the Bluff’s is under the Act and thus the NEOC had jurisdiction. judgment Court of therefore *3 affirmed.

BACKGROUND 21, 1993, On June Krzyzanowski filed a with complaint the NEOC, charging with Bluff’s on employment discrimination the of gender basis and with retaliation. Bluff’s moved to dis- the miss for lack of complaint jurisdiction, stating were not an “employer” as defined in the Act. 27,

A hearing was held on the motion. On October the hearing NEOC examiner denied Bluff’s motion to dismiss. The NEOC hearing examiner then held a public hearing, and on 25, 1994, the examiner February ruled that the NEOC had juris- diction because Bluff’s themet definition statutory of employer under the Act. The Act defines in part as “a person in who engaged industry has fifteen or more employees each working day each of twenty or more calendar weeks the current preceding calendar year.” 48-1102(2). Bluff’s 15 or more each employed week people during the time period but some of question, the employees were only part-time workers.

During the first quarter Bluff’s 11 full- employed However, time employees and 5 part-time employees. at least three part-time did not work of each days week. Thus, even though Bluff’s more than paid for each people weeks, these Bluff’s did not have 15 people working on at least days these The weeks. same of result occurs for type the remaining quarters of 1991 and 1992. Vision Clinic v. Bluff’s Krzyzanowski, supra.

The NEOC hearing examiner did not specifically address the workers, method of counting part-time but held that did Bluff’s However, not the employ requisite 15 employees. the examiner held that Bluff’s could be consolidated with another entity, Meat and that Shoppe, by counting of both enti- ties, there jurisdiction. was The examiner NEOC further held that Bluff’s had intentionally discriminated against 4, 1994, Krzyzanowski. On March the NEOC ordered that the hearing examiner’s findings conclusions be entered as the official final order of the NEOC. 1,1994,

On April Bluff’s filed an appeal NEOC’s deci- sion to the district court for Scotts Bluff County. One of the issues was the appeal conclusion NEOC that it had jurisdiction over the parties. On July district court for Scotts Bluff reversed the County NEOC’s decision and dis- missed Krzyzanowski’s complaint, stating there was not sufficient evidence to indicate Bluff’s was employer so as to jurisdiction obtain in the NEOC and that the combination of entities was not proper.

Krzyzanowski appealed district court’s decision on juris- diction to the Court of The Court of Appeals. Appeals applied theory counting part-time employees, reversed the decision of the district court and remanded the matter for further proceedings. Vision Clinic v. Bluff’s Krzyzanowski, It is from supra. this order that Bluff’s petitions for further review.

ASSIGNMENTS OF ERROR *4 Krzyzanowski asserts that the district court in erred its deter- mination that the NEOC lacked jurisdiction to resolve the parties’ dispute. review, (1) the that Bluff’s asserts further for

In its petition of count- theory the in applying payroll erred Court of Appeals before the dis- argued was not that issue because ing employees the erred (2) adopting the Court of Appeals trict court employees. counting part-time theory REVIEW OF STANDARD factual dis- not involve a that does A question jurisdictional law; therefore, reaches a court appellate of is a matter pute the trial court. In re Interest from that of independent conclusion al., (1995); In re 540 N.W.2d 316 P. et 248 Neb. Krystal of al., (1995); 248 Neb. 540 N.W.2d Alex T. et Interest of State, 532 N.W.2d 636 248 Neb. Jones v.

ANALYSIS the NEOC has because jurisdiction Bluff’s denies defined in as an qualify “employer” Bluff’s does not that it not meet the defi- argues Bluff’s further does 48-1102. it does not employ requisite nition of because “employer” however, argues Krzyzanowski, number of employees. (1) meet the definition of because “employer” part- Bluff’s does be counted toward the jurisdictional time should pre- or, (2) The Meat should be alternatively, Shoppe the two are sufficiently combined with Bluff’s because entities interrelated. erred in

Bluff’s that the Court argues applying to determine whether it was an theory “employer” before that court whether only combining because issue was However, the entities was determination of proper. of the Act is a “employer” purposes jurisdictional question law, a matter of law. In a matter deciding thus we reach from that of the trial independent conclusion court on the al., In re jurisdictional Krystal issue. Interest P. et In supra; al., State, Alex re Interest T. et Jones v. supra; supra. In to have jurisdiction, order for NEOC Bluff’s must meet the definition of under the Act. “employer” is defined Employer in an industry as “a who has fifteen or more person engaged for each each of or more working day twenty current or year.” calendar weeks calendar preceding

121 VII the Act after title 48-1102. Because is patterned § 1964, (1994), it Act 42 U.S.C. 2000e et is Rights seq. Civil simi- construing to consider federal court decisions appropriate Collins, v. 243 Neb. lar federal Fort Calhoun legislation. City of 528, (1993); Inn v. Nebraska Equal 500 N.W.2d Airport 822 852, Comm., (1984); N.W.2d 727 Zalkins 217 Neb. 353 Opp. 289, Comm., 217 Neb. 348 Peerless Co. v. Nebraska Equal Opp. N.W.2d 846

In whether an has the number of determining entity requisite federal courts have looked to employees qualify employer, (1) has for the time entity the actual number (2) entity sufficiently whether the is period question related to another so that the two would result entity combining See, in the number of Thurber v. Jack employees. e.g., Inc., (1st 1983), 717 F.2d 633 Cir. cert. denied 466 Reilly’s, (1984); L. 2d U.S. 104 S. Ct. 80 Ed. 153 Zimmerman Co., (7th 1983); v. North American 704 F.2d 347 Cir. Signal Co., (8th 1977); Baker v. Stuart 560 F.2d Cir. 389 Broadcasting Clinic, Inc., v. Medical 791 F. 1327 Supp. Kosciusko Wright (N.D. 1992). Ind. reaching

Before the issue of whether to combine entities however, be made as to whether the entity a determination must to meet the statutory has question enough employees require determination, federal making ment in and of itself. In this may courts have be generally agreed part-time employees See, Inc., Reilly’s, counted. Thurber v. Jack e.g., supra; Co., Zimmerman v. North American Dumas v. Signal supra; Vernon, Ala., (5th 1980); Mount 612 F.2d 974 Cir. Town of Clinic, Inc., v. supra; v. Kosciusko Medical Musser Wright Inc., (E.D. 578 F. Mountain View 229 Broadcasting, Supp. 1984). have on the method disagreed Tenn. Other courts to be Swenson, See Reith v. used for these 63 counting employees. 1993) (BNA) (D. Prac. Cas. 885 Kan. (discussing Fair Emp. methods). and workplace have counting developed. Two methods of method, method, the counts an on a employee first “payroll” if he or on the on that An day. she was given day each day have to to work physically report does not employee the jurisdictional prerequisite. to be counted toward order Inc., See, supra; Thurber v. Jack v. Cornell Reilly’s, Pedreyra Pharmacies, (D. 1979); 465 F. Colo. Prescription Supp Swenson, Reith v. Pascutoi supra; Washburn-McReavy (BNA) (D. 11 Fair Prac. Cas. Minn. Mortuary, Emp. method, method, 1975). Under the second “workplace” the statutory focus is on “for each language working day.” method, Under this an employee only counted toward the if he or jurisdictional she prerequisite physically reported See, work that leave day was from work. paid E.E.O.C. v. Inc., Educational Metropolitan (7th 60 F.3d Enterprises, 1995), Cir. cert. granted_U.S._, 116 S. Ct. *6 134 L. (1996); Associates, Ltd., Ed. 2d 209 E.E.O.C. v. Garden and (8th 1992); 956 F.2d 842 Cir. Zimmerman v. North American Co., Signal supra.

The issue of which method to use to count these employees is one of first impression Nebraska. Krzyzanowski contends that the method payroll should be applied and the relies on lead- method, ing case following Inc., Thurber v. Jack Reilly’s, Thurber, In supra. a waitress brought employment discrimi- nation suit her against a employer, bar. The bar had approxi- mately 9 each employees working but day, employed and paid over 15 employees total for the weeks in question. Some of the were employees full-time-workers and some were part-time workers. The bar that it alleged did not have enough employees to meet the statutory requirement because the language “for each working day” limited employees those persons actually reporting for work each day.

The U.S. Court of for the First Circuit discarded the employer’s argument, that a finding strict of the interpretation language “for each working day” was inconsistent with the remedial of title purposes VII. The court further held that the payroll method was more consistent with the remedial purpose of title VII. remedial of purpose title VII is to eliminate the “inconvenience, unfairness and humiliation of discrimination.” Pedreyra Pharmacies, v. Cornell Prescription 465 F. at Supp. 941. Krzyzanowski also relies on the policy statement of the Equal Employment Opportunity (EEOC), Commission 8 Fair Emp. (BNA) Prac. Man. 405:6857 (April 1990), which the rejects statement, method. In workplace this policy the VII, who fifteen that under title “an has employer states EEOC of the meets the twenty year the weeks payroll employees .... The Commission’s posi- definition of statutory employer are whether counted regular that all part-time tion is each Id. at each of week.” day part work part 405:6860. the is more Krzyzanowski’s position per

We determine that First, suasive, the method. the and we therefore adopt payroll be with the method is to more consistent considered See, v. Pedreyra of the statute. Cornell remedial purpose Pharmacies, v. Pascutoi Washburn- supra; Prescription Such an interpretation McReavy Mortuary, supra. number would allow a number of greater requirement

employee statute, advancing to be affected purpose employers discrimination. eliminating Second, consistent with the of the statute is language words focusing method. on the “each work- Instead in the context of the entire we day,” phrase ing interpret Thus, the that the “have” the employer sentence. requirement working number for each day goes with the working relationship whether the has employee whether question, employee time not each As worker is day. long to work physically reported job, to return to the attendance regularly routinely expected working day. be each Reith may required at the not job Swenson, (D. (BNA) 1993). Fair Prac. Cas. Kan. Emp. *7 Court for the of Indiana stated the U.S. District District As Clinic, Inc., 1327, F. Medical 791 Supp. Kosciusko Wright 1992): (N.D. Ind. 1331-32 far these statutes is that an interpretation sounder of

[T]he if he or only an not she works employee “has” employer rather he she is on the com- a but if particular day, on 1989, all of more than 1988 payroll. During pany’s worked, if for whom would asked twenty persons, Medical Clinic their identified Kosciusko as have . . . “employer”. with not these defini- certainly

... It is inconsistent an conclude that an “has” employer tional provisions not even if that is working day, employee on a employee if he or she was on that present day especially physically — for work there the before and is to show day expected up Zimmerman some to that gave recognition on the next day. fact, of on vacation or sick allowing inclusion workers by categories in the total. It not obvious those why leave is counted, but one absent workers should be who present week, seven, four or five a instead of should days works counted on other days. not be those “ An ‘has’ an ‘for each of a employee working day’ week if that is on the employee payroll[;] ‘employee- with exists duties and bene- employer’ relationship reciprocal fits, and the to the subject employee types employment discrimination the statute is Reith v. designed prevent.” Swenson, (BNA) Fair (D. Prac. Cas. Kan. Emp. 1993).

This not render interpretation does the phrase superfluous, but, rather, on both places emphasis “having” employee, well as “for each having employee To working day.” give to the “each particular emphasis working day” language Act would defeat only its unfair purpose preventing employ ment That practices. would interpretation require counted, who work 2 hours must be every day but would not another require counting who works 10-hour employee shifts workweek, out of 5 days of allowing thus to cir employers cumvent the Act. The nature of very today’s changing work force makes it impossible for court to that a say must person work 40 or more hours week to be every considered a full-time employee subject thus to calculation for of the Act. purposes See Pascutoi v. Washburn-McReavy 11 Fair Mortuary, Emp. (BNA) (D. Prac. 1975). Cas. 1325 Minn. burden Any placed small by business the Act is greatly outweighed benefit to be served. Act does not burden put weighty on small but, employers, imposes relatively small burden of rather* forbearance from discrimination in Thurber employment. v.Jack Inc., Reilly’s, (1st 1983), 717 F.2d 633 cir. cert. denied 466 U.S. 104 S. Ct. 80 L. Ed. 2d 153 use of the method Finally, simplifies calculation for the statutory One need requirement. look only *8 given on any the is on employee to see whether for week, reported the employee physically or not not whether each day. work method for method is the better the payroll conclude that

We calculating and more appropriate counting employees Thus, Bluff’s, 48-1102(2). to employees pursuant § number of week in definition, ques- for each 15 employees did employ Act. for purposes as employer tion and qualifies Therefore, of whether or not reach the issue we need not calculating the two entities for combined NEOC properly number of employees.

CONCLUSION 48-1102(2) in because defined § Bluff’s was indi- method of counting employees of the payroll application number of the requisite Bluff’s employed cates Thus, the Court we conclude that the time question. method for was correct its application that the NEOC had and its determination counting employees jurisdiction.

Affirmed. Fahrnbruch, L, not participating.

Caporale, 1, dissenting. rests its decision of first majority impression I disagree. Act, Rev. Fair Practice Neb. Employment under the Nebraska 1993), ill- (Reissue 48-1126 through Stat. 48-1101 §§ because it considers them to be “more federal cases reasoned This, of the statute.” I with the remedial purpose consistent of what the Nebraska suggest, begs question regretfully remedy. to sought Legislature of our act is to “foster the employment

The express purpose ... on the basis of merit regardless of all employable persons sex, race, color, national disability, origin religion, their obtain and hold without right employment their safeguard 48-1101. To accomplish purpose, discrimination ....”§ more, the act “an from prohibits employer” and apparently “race, color, acts based discriminatory upon in certain engaging status, sex, or national origin.” marital disability, religion, It 48-1104. defines employer, perti- (Emphasis supplied.) *9 an fifteen industry one in who has or “engaged nent as part, each in each of or working day twenty more employees the current or calendar year.” more calendar weeks in preceding 48-1102(2). §

Thus, good whatever reason our deemed and Legislature sufficient, end all the act not undertake to dis- employment does crimination, merely but to end such discrimination those who in an at workers industry” are least 15 “engaged employ aside the working day.” Leaving question “each of what an be, by counting the all are on the industry might majority, who of whether given on a are day irrespective required work that reads the day, effectively to “each phrase working out the in day” of statute substitutes its and stead the place result, its a 48-1102(2) “on As phrase payroll.” now operates § does, if it it as defined not as as one “engaged but in who an has fifteen or more industry its employees or twenty each of more calendar or weeks the current preced- calendar I ing year.” respectfully that if was suggest what meant, the had it Legislature was of fully capable having said so. statute, dealing when with an Except ambiguous Seevers v. Potter, 621, Neb. 537 (1995), 248 N.W.2d 505 aor constitu- one, Zach, 29, tionally State ex rel. v. suspect Grape 247 Neb. (1994), 524 N.W.2d 788 our task is not to legislative improve to it language, Omaha, but as written. See v. apply City Garza of 215 Neb. 340 (1983) (court N.W.2d 409 not permitted to See, also, read into which there). words statute are not Nebraska Dobias, & Ins. Health Guar. Assn. 247 Neb. Life (1995); Omaha, N.W.2d 217 Major Inc. v. Liquors, City of (1972) (courts Neb. N.W.2d 483 do not substitute their social and economic beliefs for of judgment legislative bodies). come to

Having Clinic, conclusion Bluff’s Vision P.C., does not itself workers, employ requisite number of I must consider issue the majority reach, found unnecessary to whether, namely, as Susan Krzyzanowski posits, the eye-care Vision, of Bluff’s a operations professional are corporation, so interrelated with the food catering operations of Meat Inc., a Shoppe, business corporation, that the of latter must be considered to be the the former as well. In this both Bluff’s Vision and cite regard, Krzyzanowski Co., (8th us to Baker v. Stuart 560 F.2d 389 Cir. Broadcasting 1977), that there are whereunder it which holds circumstances treat enter- two business appropriate allegedly separate for the whether single entity determining prises purpose there number of workers to one of the requisite bring exists entities under the definition of for the “employers” purposes 1964, 42 title VII of the Civil Act of U.S.C. 2000e et Rights Baker, the factors to consider mak- seq. According such a determination include the interrelation of ing opera- tions, the existence of common the existence of management, controls, centralized and the existence common ownership financial control. While that the Krzyzanowski urges here, factors exist Bluff’s Vision otherwise. predictably argues not, not, I need and therefore do whether I consider accept of these existence factors as basis which adequate upon *10 veil in pierce cases of this for even if that corporate type, situation, were to to be the prove Baker factors are not pre- sent in this case.

The evidence demonstrates that the only of one president other; is also the of the he entity president is a 50-percent and, wife, shareholder Bluff’s Vision with together his 50- shareholder of Meat that he one of two mem- percent Shoppe; is Vision; of the board of bers directors of Bluff’s and that he and wife of the his two four members of the board of comprise directors of Meat While it true is that the articles of Shoppe. of Meat bylaws control incorporation Shoppe give general over to its board of its affairs directors those cir- president, not, themselves, cumstances do and of that there establish is sufficient common or financial control to warrant ownership one as the alter of the other. Neither there treating entity ego evidence that the diverse business of the two any operations interrelated, are in any way entities or that there is central- any ized control of labor relations. I

Accordingly, would reverse the of the Nebraska judgment Court of and remand cause thereto with the direc- tion that it affirm the court. judgment district

Case Details

Case Name: Bluff's Vision Clinic, P.C. v. Krzyzanowski
Court Name: Nebraska Supreme Court
Date Published: Nov 15, 1996
Citation: 555 N.W.2d 556
Docket Number: S-94-787
Court Abbreviation: Neb.
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