Lead Opinion
Two issues are presented: 1) whether appellate courts, when reviewing the Workers’ Compensation Court’s determination of whether a worker was hired in Oklahoma, may utilize the any competent evidence standard of review; and 2) whether the worker was hired within Oklahoma. We find that: 1) because the issue of whether an employee was hired in Oklahoma is a jurisdictional question, appellate courts — rather than accepting the findings of the Workers’ Compensation Court if supported by competent evidence — must review the record de novo to determine whether an employer-employee relationship existed in Oklahoma; and 2) because the facts do not support an authorized hiring in Oklahoma, the Workers’ Compensation Court lacks jurisdiction.
FACTS
The Bechtel Corporation (Bechtel/the employer), an Arkansas construction company, was awarded a construction project in Arkansas. Bechtel hired some workers for the project through a referral procedure which was governed by an agreement between Bechtel and the International Brotherhood of Electrical Workers labor union (IBEW).
Pursuant to its agreement with the IBEW, Bechtel contacted the local union in Little Rock, A'kansas, and informed the union that it needed workers. The Akansas union contacted a labor union in Tulsa, Oklahoma, seeking applicants for the Bechtel project. The local union in Tulsa contacted Mickey Garrison (Garrison/the employee), an Oklahoma resident and a member of the Tulsa union, concerning work at the Bechtel construction project in Akansas. The Tulsa union informed the employee that he needed to go to the labor union in Little Rock, A'kansas, and pick up a referral slip the next day before going to the construction site. When Garrison arrived in Akansas, he filled out some paperwork for the A'kansas union, obtained a referral slip from them, and went to the construction sité.
At the construction site, Garrison handed in his referral slip and the employer sent him to training.
On May 29, 1992, Garrison filed for workers’ compensation benefits in Oklahoma alleging that: 1) although he was injured in Arkansas, the employment agreement was made in Oklahoma; and 2) because he was hired in Oklahoma, the Oklahoma Workers’ Compensation Court had jurisdiction to award disability benefits pursuant to
After the hearing, the Workers’ Compensation Court dismissed and denied Garrison’s claim for compensation finding that: 1) neither the Arkansas union nor the Tulsa union had authority to hire employees for Bechtel; 2) the function of the Arkansas union was to provide applicants to the employer which could be accepted or rejected exclusively by the employer; 3) the final acceptance of the employee’s application for employment was at the job site in Arkansas; and 4) because the employee was employed and injured in Arkansas, Oklahoma was without jurisdiction. The employee appealed and the Court of Appeals affirmed. It found that the Workers’ Compensation Court’s determination that the employee was hired in Arkansas was supported by competent evidence and that the court did not err in denying the employee’s claim for disability benefits. We granted certiorari on September 13, 1994.
I.
BECAUSE THE ISSUE OF WHETHER AN EMPLOYEE WAS HIRED WITHIN OKLAHOMA IS A JURISDICTIONAL QUESTION, APPELLATE COURTS— RATHER THAN ACCEPTING THE FINDINGS OF THE WORKERS’ COMPENSATION COURT IF SUPPORTED BY COMPETENT EVIDENCE — MUST REVIEW THE RECORD DE NOVO TO DETERMINE WHETHER AN EMPLOYER-EMPLOYEE RELATIONSHIP EXISTED IN OKLAHOMA.
In his petition for certiorari, the employee argues that the Court of Appeals erred when it reviewed the Workers’ Compensation Court’s determination that the employment contract was entered into in Arkansas by utilizing the any competent evidence standard of review. Under this standard, review is confined to a search of the record for any competent evidence which supports the .compensation court’s decision.
Pursuant to 85 O.S.1991 § 4, either an injury occurring in Oklahoma or an employment relationship forming within this State, is unequivocally and unmistakably a requisite to jurisdiction of the Workers’ Compensation Court.
Prior to 1955, the Workers’ Compensation Court did not have jurisdiction to hear and determine a claim for workers’ compensation benefits when a worker received an injury outside the state of Oklahoma.
After the 1955 amendment, this Court, in General Elec. Co. v. Folsom,
“Whether a contract is made in a foreign state or in Oklahoma is a question of law and fact to be determined from all the facts and circumstances ...”
We again addressed the issue of whether an employment contract was entered into within Oklahoma in Williams Bros. Co. v. Wiley,
“Where the contract or arrangement of employment was made is a question of fact, and if there is competent evidence reasonably tending to support the finding of the State Industrial Commission as to where such contract or arrangement was made, an award based thereon will not be disturbed on review by the Supreme Court.”
The next year, in Groendyke Transp., Inc. v. Gardner,
Although the Berkley, Gardner, and Chapman, line of authority exists, in Hartford Ins. Group v. McDaniel,
Recently, we reviewed the Workers’ Compensation Court’s determination that it had jurisdiction to adjudicate the workers’ compensation claim of a worker who was injured outside of Oklahoma in Cherokee Lines, Inc. v. Bailey,
In Bailey and Daleo, we expressly recognized that the question of whether the employment contract was entered into within Oklahoma is an inquiry into whether an employer-employee relationship existed in Oklahoma subject to de novo review. Hartford, Bailey, and Daleo, implicitly overruled C. & H. Transp. Co. v. Berkley,
II.
BECAUSE THE FACTS DO NOT SUPPORT AN AUTHORIZED HIRING IN OKLAHOMA, THE WORKERS’ COMPENSATION COURT LACKS JURISDICTION.
The employer asserts that the evidence establishes that Garrison’s employment contract was entered into in Arkansas. The employee argues that Garrison was hired in Oklahoma. An employer-employee relationship is created by contract, either express or implied, or by unequivocal acts of the parties recognizing the existence of the relationship.
Every contract results from an offer and acceptance.
To establish that an employment contract was entered into within Oklahoma, the employee must prove that an employment offer was made by the employer or its agent and that it was accepted by the employee in Oklahoma. Here, it is undisputed that: 1) Bechtel did not personally contact Garrison in Oklahoma, rather, the employee was advised of the job by the Tulsa labor union; 2) the Arkansas labor union contacted the Tulsa labor union seeking workers to refer to Bechtel; 3) the Arkansas union was under a referral contract with the employer, but the Tulsa union did not have a contract with Bechtel; 4) Garrison did not speak personally with anyone from Bechtel until he reached the construction site in Arkansas; 5) the employee did not fill out any paperwork whatsoever until he reached the Arkansas labor union; 6) Garrison was not compensated for his trip from Tulsa to the Arkansas union or from the Arkansas union to the construction site; and 7) the employer began paying Garrison after he reached the construction site and began training. Accordingly, the determinative issues, under the facts presented, are: 1) whether the Oklahoma union acted as an agent of the employer and made Garrison an offer of employment; and, if so, 2) whether the employee accepted the employment offer in Oklahoma.
Garrison cites Foster Wheeler Corp. v. Bennett,
Here, Bechtel contacted the Arkansas labor union directly, seeking referrals, but did not contact the Tulsa union or the employee. Furthermore, Bechtel did not have any type of agreement with the Tulsa union. Rather, the Arkansas labor union contacted the labor union in Oklahoma attempting to find a worker to send to refer to the employer. Although we have not previously addressed the issue of whether a labor union acts as an agent of an employer and makes employment offers when it contacts another labor union seeking workers to refer to an employer, other jurisdictions have addressed this precise issue.
One court has found that an employment contract is entered into within the state where the worker was contacted by the worker’s local labor union when the union was contacted by an out-of-state labor union seeking referrals for an employer.
An agency relationship generally exists if two parties agree that one is to act for the other. An essential element of an agency relationship is that the principal have some degree of control over the conduct and activities of the agent.
CONCLUSION
This Court has continuously held that. when a decision of the Workers’ Compensation Court is reviewed and it involves a jurisdictional fact issue, the appropriate standard of review is de novo.
The employer entered into a referral contract with the Arkansas labor union. Bechtel did not contact the employee or the Tulsa union. Rather, the Arkansas labor union contacted the Tulsa union seeking employees to refer to Bechtel. The Tulsa union contacted the employee and referred him to the Arkansas union. Unless the Tulsa labor union had authority to hire workers on behalf of the employer, no contract for employment could exist in Oklahoma. Under the facts presented there is no evidence that the employer granted the Tulsa union any authority, express or implied, to hire for the employer. Any purported acceptance made by the employee to the Tulsa union was ineffectual and the contract was not entered into within Oklahoma.
CERTIORARI PREVIOUSLY GRANTED; COURT OF APPEALS OPINION VACATED; WORKERS’ COMPENSATION COURT SUSTAINED.
Notes
. A copy of the agreement is not included in the record. However, Bechtel's labor relations supervisor testified that the company enters into labor agreements with all of the labor organizations it works with on each project to establish wages for work and other terms and conditions of employment for that particular project. The agreement only covers the geographic area where the project is located and it is not in effect for any other stale in which the IBEW has a local union. Pursuant to the agreement, the amount of training the applicants have is determined by the union, not the employer.
. When an applicant arrived at the project site the employer reviewed its own personnel records to see if the employee had previously worked at that particular site. If the employee had a bad work history with Bechtel, the employee would not be hired. Union dues were paid to the local union in Arkansas. The referral slip referred to Garrison as Bechtel’s employee. The employee testified that when he arrived at the job site the employer did not do a background check before sending him to training. However, according to Bechtel, the union had faxed the referral slip
.Title 85 O.S.1991 § 4 provides in pertinent part:
“... [A]ll the provisions of the Workers' Compensation Act of this state ... shall apply to employers and to employees, irrespective of where accident resulting in injury may occur, whether within or without the territorial limits of the State of Oklahoma, when the contract of employment was entered into within the State of Oklahoma, and the said employee was acting in the course of such employment and performing work outside the territorial limits of this state under direction of such employer. In such a case the injured employee may elect to commence and maintain his action for benefits and compensation in the State of Oklahoma as provided in the Workers’ Compensation Act and the Court is hereby vested with jurisdiction thereof as fully as if such injury or accident had occurred within this state....”
. Owings v. Pool Well Serv.,
. Parles v. Norman Mun. Hosp.,
. Oklahoma Natural Gas Co. v. Williams,
. Duncan v. Powers Imports,
. Mahan v. NTC of America, see note 7, supra at 806; Leonhardt Enter, v. Houseman,
. Mahan v. NTC of America, see note 7 at 806, supra. In McKeever v. Egbert,
.Title 85 O.S.1991 § 4, see note 3, supra. The jurisdictional nature of where an employment contract is entered into can be compared to the analogous question of whether a claimant is a physically impaired person under the Special Indemnity Fund Act (Act), 85 O.S.1991 §§ 171-176. If a person is physically impaired, jurisdiction is affixed in the Workers' Compensation Court in Fund cases. Accordingly, whether a worker is correctly judged to be a physically impaired person within the Act is a jurisdictional question and we are not bound nor concluded by the determination of the trial tribunal. Special Indent. Fund v. Choate,
. See, Daleo Inc. v. Edmonds,
. Phillips v. H.A. Marr Grocery Co.,
. Title 85 O.S.Supp.1955 § 4 provides in pertinent part:
"... [A]ll the provisions of the Workmen’s Compensation Law ... shall apply to employers and to employees, irrespective of where accident resulting in injury may occur, whether within or without the territorial limits of the State of Oklahoma, when the contract of employment was entered into within the State of Oklahoma ...”
. We note that workers' compensation claims were formerly heard by the State Industrial Commission, 85 O.S.1951 § 69.1. However, because under the current statutory scheme the Commission is now the Workers' Compensation Court, 85 O.S.1991 § 1.2, references will be to the Workers’ Compensation Court.
. We note that in most of these decisions after reviewing and weighing the evidence and reaching our own conclusions of law and fact, we stated that there was competent evidence suffi
. Cherokee Lines, Inc. v. Bailey, see note 11, supra; Beall v. Altus Pub. School Dist.,
. Daleo, Inc. v. Edmonds, see note 11, supra; Cherokee Lines, Inc. v. Bailey, see note 11, supra; Beall v. Altus Pub. School Dist., see note 16, supra.
. National Outdoor Advertising Co. v. Kalkhurst,
. Armstrong v. Guy H. James Constr. Co.,
. Armstrong v. Guy H. James Constr. Co., see note 19, supra.
. Daleo, Inc. v. Edmonds, see note 11, supra; Armstrong v. Guy H. James Const. Co., see note 19, supra; General Elec. Co. v. Folsom,
. Daleo, Inc. v. Edmonds, see note 11, supra; Hartford Ins. Group v. McDaniel, see note 11, supra.
. In Foster Wheeler Corp. v. Bennett,
. In Conant’s Case,
. Welch v. S J. Groves & Sons Co.,
. Haworth v. Central Nat’l. Bank of Oklahoma City,
. The employee contends that because the Tulsa union had the apparent authority to offer Garrison employment, he was hired in Oklahoma. We find this argument unpersuasive; apparent authority results from manifestations by the principal to a third person that another is the principal's agent. Stephens v. Yamaha Motor Co., Ltd., Japan,
. The employee argues that the trial court erred because it found that the employee made the offer of employment and it was accepted by the employer at the job site. Because we have found that the Tulsa union did not have the authority to make employment offers or accept them for the employer, we need not address the issue of whether the employee was hired at the job site in Arkansas or at the Arkansas union. For jurisdictional purposes we need only determine whether the employee was hired within this State.
. See discussion note 9, supra.
Dissenting Opinion
dissenting in part.
I concur in the court’s view that a trial tribunal’s resolution of a disputed fact issue over the locus contractus
I would hold that all local union chapters involved in claimant’s recruitment were the employer’s agents, whose offer of employment was accepted in this State by the claimant’s act of proceeding to the job site in a neighboring state.
. Locus contractus is where the event occurred which made the contract effective, not the place where the company intended for it to be performed, nor the locus where the company may avoid the contract for breach of a condition subsequent. See Lilienthal v. Suffolk Brewing Co.,
. Mahan v. NIC of America, Old.,
. Company calls for union help in recruiting labor for a job site are governed by an understood course of dealing. They do not happen in a vacuum. Union job referral slips go to those known to have the needed skills. It is only these workers — already prescreened — who may respond by reporting to the job site. Their individual employment contract, which is forged by this "act-induced-by-promise” process, may be avoided if subsequent on-site screening should turn up an unacceptable worker, based on the company’s minimum hiring requirements. In the latter event, the resulting defeasance is not for failure of a condition precedent but rather of condition subsequent. See Bultman v. Frankart,
The place of a union-initiated employment contract formation (locus contractus) need not be the same as the situs where company screening is to be conducted, unless hiring is clearly preconditioned on such prescreening. There is nothing in this record to indicate that the employer’s promise, transmitted by the union's local chapters, was understood by the claimant — in words, by custom or previous course of dealing— to be dependent on his passing some on-site inspection test or upon the company’s job site acceptance of the worker. See Southland Cotton Oil Co. v. Renshaw, 148 Okl 107,
.See Dangott v. ASG Industries, Inc., Okl.,
