Carpenter assembles compensable claim as employee

Evidence that a skilled carpenter never maintained a separate business to perform work other than his work with a construction company constitutes strong indicia of an employer-employee relationship between the company and the carpenter.

Case name: Elde v. Castles Brothers, Inc., 24 MIWCLR 181 (Mich. W.C.A. 2010).

Ruling: A workers' compensation magistrate found that an employer-employee relationship existed between a construction company and a skilled carpenter who installed kitchens and baths for the company.

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What it means: Evidence that a skilled carpenter never maintained a separate business to perform work other than his work with a construction company, was paid by the hour, used the company truck anytime he wanted, had access to the company machine shop, used company credit cards to purchase materials, and did not advertise or seek jobs except for his work with the company constitutes strong indicia of an employer-employee relationship between the company and the carpenter.

Summary: The workers' compensation magistrate found that an employer-employee relationship existed between a construction company and a skilled carpenter who installed kitchens and baths for the company. The magistrate explained that the carpenter never maintained a separate business to perform work other than his work with the company. Although he had a business, he only did this to process the 1099 forms sent to him from the company and to get tax credits on things that would normally be paid by the company, such as insurance, tools, and vehicle use.

Also, the magistrate noted that the carpenter was paid by the hour, he used the company truck anytime he wanted, he had access to the company machine shop, and he used company credit cards assigned to him to purchase materials. When a job was too big or difficult, the company assigned another carpenter or helper to assist him. In addition, the carpenter did not advertise or seek jobs except for his work with the company. The fact that he helped friends with carpenter jobs did not affect his employment status. The magistrate went on to find the carpenter entitled to wage-loss benefits, along with reasonable and necessary medical benefits.

Read more at the WorkersComp Forum homepage.

March 7, 2011

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