In a landmark ruling in June 1999, a court determined that healthcare workers of Harry’s Nurses Registry, Inc. (HNR), retained by the company, were deemed independent contractors. This appeal stems from an initial determination by the Department of Labor (DOL) that had assessed HNR for additional unemployment contributions based on remuneration paid to its healthcare workers. HNR objected to this determination, and following hearings, an Administrative Law Judge upheld HNR’s objection.
However, in a turn of events, the Unemployment Insurance Appeal Board (UIAB), in a September 2018 decision, rescinded its prior decision. The UIAB ruled that the healthcare workers were, in fact, employees of HNR and hence, are subject to unemployment insurance contributions. The Board dismissed the relevance of a previous 1999 decision that considered HNR’s healthcare workers as independent contractors.
HNR’s appeal against the UIAB’s decision was based on the contention that the Board was bound by the 1999 decision. The Board disputed this, asserting that it was under no obligation to conform to the precedent established in the previous decision. The court ultimately sided with the Board, stating that the current determination was addressing a different audit period and involved additional factors or control indicators not present in the 1999 decision. The court’s ruling highlights the ongoing complexities in distinguishing between employees and independent contractors in the context of unemployment insurance.
Case Information | Court Document