Critical Health Connection, Inc. v. Texas Workforce Commission

338 S.W.3d 758, 2011 Tex. App. LEXIS 3235, 2011 WL 1642187
CourtCourt of Appeals of Texas
DecidedApril 27, 2011
Docket03-09-00528-CV
StatusPublished
Cited by8 cases

This text of 338 S.W.3d 758 (Critical Health Connection, Inc. v. Texas Workforce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Critical Health Connection, Inc. v. Texas Workforce Commission, 338 S.W.3d 758, 2011 Tex. App. LEXIS 3235, 2011 WL 1642187 (Tex. Ct. App. 2011).

Opinion

OPINION

J. WOODFIN JONES, Chief Justice.

Appellant Critical Health Connection, Inc. (“CHC”) filed suit against appellee the Texas Workforce Commission (the “Commission”) seeking a refund of taxes that CHC paid under the Texas Unemployment Compensation Act. See Tex. Lab.Code Ann. §§ 201.001-217.007 (West 2006 & Supp.2010) (the “Act”). CHC asserted that the workers whom the Commission had designated CHC’s employees were actually independent contractors and, therefore, it was not responsible for contributing to the compensation fund on their behalf. After considering cross-motions for summary judgment, the trial court concluded that CHC was the “employer” of the workers in question and granted summary judgment in favor of the Commission.

On appeal, CHC argues that the trial court erred in concluding that CHC was the employer of the subject workers under sections 201.041 and 201.029 of the labor code. We will affirm the trial court’s judgment.

FACTUAL AND PROCEDURAL BACKGROUND

CHC is a medical staffing company in San Angelo, Texas. It maintains a registry of medical service providers (“providers”), primarily nurses, whom 'it refers to its client hospitals and nursing homes in order to fulfill their short-term staffing needs. According to CHC, the providers listed in its registry are not required to accept a shift when offered, and many have never accepted a shift. Those providers who accept shifts are paid by CHC *760 on an hourly basis according to rates negotiated between CHC and the individual provider. CHC charges its clients based on a “markup” from the rates CHC pays to its providers. CHC characterizes these providers as independent contractors.

In 2006 the Commission determined that the providers were not independent contractors but instead were employees of CHC. Under the Act, employers are required to contribute to the compensation fund on behalf of their employees in accordance with rules established by the Commission. See Tex. Lab.Code Ann. § 204.002 (West 2006). Based on its determination that the providers were CHC’s employees, the Commission charged CHC for past-due contributions, penalties, and interest in the amount of $58,858.14. CHC paid this amount under protest and filed an appeal seeking a refund. Following an administrative hearing, the Commission denied CHC’s refund request.

After exhausting its administrative remedies, CHC filed suit against the Commission for review of the Commission’s refusal to allow a refund. See Tex. Lab.Code Ann. § 213.073 (West 2006) (providing waiver of sovereign immunity for suit by employing unit seeking review by trial de novo of Commission’s refusal to allow adjustment or refund). The parties filed cross-motions for summary judgment. In its motion, the Commission asserted that CHC is a “temporary help firm” under the Act and is therefore statutorily deemed to be the employer of the providers. Alternatively, the Commission argued that the summary-judgment evidence showed as a matter of law that the providers are CHC’s “employees.” CHC, on the other hand, argued that the summary-judgment evidence proved conclusively that the providers are independent contractors, not employees. 1

After reviewing both parties’ summary-judgment motions and responses, the trial court granted the Commission’s motion and denied CHC’s. This appeal followed. 2

DISCUSSION

In its first issue, CHC argues that the trial court erred in concluding that, under the definition of “employment” in section 201.041 of the labor code, the providers were CHC’s employees. See id. § 201.041 (West 2006) (defining “employment” as service performed by individual for wages or under express or implied contract, “unless it is shown to the satisfaction of the commission that the individual’s performance of the service has been and will continue to be free from control or direction under the contract and in fact”). In its second issue, CHC argues that the trial court erred in concluding that labor code section 201.029 deemed CHC the employer of the providers as a matter of law. See id. § 201.029 (“For purposes of this subtitle, a temporary help firm is the employer of an individual employed by the firm as a temporary employee.”); see also 40 Tex. Admin. Code § 815.133(b) (2010) (Tex. Workforce Comm’n, Employee Staff Leasing & Temporary Help Firms).

Our resolution of these issues turns on our construction of the governing *761 statutes. Statutory construction is a legal question, which we review de novo. In re Caballero, 272 S.W.3d 595, 599 (Tex.2008). In construing statutes, we ascertain and give effect to the legislature’s intent as expressed by the statute’s language. State v. Shumake, 199 S.W.3d 279, 284 (Tex. 2006). We use definitions prescribed by the legislature and any technical or particular meaning the words have acquired. Tex. Gov’t Code Ann. § 311.011(b) (West 2005); City of Rockwall v. Hughes, 246 S.W.3d 621, 626 (Tex.2008). Otherwise, we construe the statute’s words according to their plain and common meaning, Texas Dep’t of Transp. v. City of Sunset Valley, 146 S.W.3d 637, 642 (Tex.2004), unless a contrary intention is apparent from the context, Taylor v. Firemen’s & Policemen’s Civil Serv. Comm’n, 616 S.W.2d 187, 189 (Tex.1981), or unless such a construction would lead to absurd results, University of Tex. Sw. Med. Ctr. v. Loutzenhiser, 140 S.W.3d 351, 356 (Tex.2004). In determining the meaning of a statute, we consider the entire act, its nature and object, and the consequences that would follow from each construction. Sharp v. House of Lloyd, 815 S.W.2d 245, 249 (Tex.1991).

Because the Commission is the agency that administers the Act, see Tex. Lab.Code Ann. §§ 301.061-.062 (West 2006), we give serious consideration to its construction. See First Am. Title Ins. Co. v. Combs, 258 S.W.3d 627, 632 (Tex.2008); Farmers Tex. County Mut. Ins. Co. v. Romo, 250 S.W.3d 527, 536 (Tex.App.-Austin 2008, no pet.);

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338 S.W.3d 758, 2011 Tex. App. LEXIS 3235, 2011 WL 1642187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/critical-health-connection-inc-v-texas-workforce-commission-texapp-2011.