Glatfelter Barber Shop v. Unemployment Compensation Board of Review

957 A.2d 786, 2008 WL 4346316
CourtCommonwealth Court of Pennsylvania
DecidedSeptember 24, 2008
Docket1736 C.D. 2007
StatusPublished
Cited by34 cases

This text of 957 A.2d 786 (Glatfelter Barber Shop v. Unemployment Compensation Board of Review) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glatfelter Barber Shop v. Unemployment Compensation Board of Review, 957 A.2d 786, 2008 WL 4346316 (Pa. Ct. App. 2008).

Opinions

OPINION BY

Judge McGINLEY.

Glatfelter Barber Shop (GBS) petitions for review from an order of the Unemployment Compensation Board of Review (Board) that reversed the referee’s denial of benefits under Section 402(h) of the Unemployment Compensation Law (Law)1, 43 P.S. § 802(h).2

Wamsley worked as a commissioned barber for GBS since January of 2002. His last day of employment was October 23, 2006. The facts, as found by the Board, are:

3. The claimant [Wamsley] entered into an independent contractor agreement, which was not signed by the claimant [Wamsley] until 2004.
4. The employer [GBS] alleged that the claimant [Wamsley] leased a chair from the owner.
5. However, the claimant [Wamsley] pays nothing to the shop owner.
6. The claimant [Wamsley] submits all proceed [sic] from services to the employer’s [GBS’s] cash register.
7. The employer [GBS] then pays the claimant [Wamsley] a set percentage of total payments on a weekly basis.
8. The employer [GBS] set prices for services rendered at the shop.
9. The employer [GBS] refused to allow the claimant [Wamsley] to distribute independent business cards.
10. The employer [GBS] set the hours of operation.
11. The employer [GBS] provided most equipment and supplies.
12. The claimant [Wamsley] worked 54 hours a week for the employer [GBS].
13. The claimant [Wamsley] had to report when he was going on vacation.
14. The claimant [Wamsley] was only a barber, not a barber manager.
15. The claimant [Wamsley] was required to attend meetings.
16. The employer [GBS] wanted the claimant [Wamsley] to sign a non compete contract clause.
17. The non compete clause stated that the claimant [Wamsley] could not work for two years following his separation from employment within a 10 mile radius....
18. The claimant [Wamsley] was trying to negotiate an accommodation in the non compete contract clause in that he wanted it limited to a less than 10 mile radius.
19. The employer [GBS] discharged the claimant [Wamsley] for trying to negotiate an accommodation in the non compete contract clause.
[789]*78920. Prior to his discharge, the employer [GBS] never told that [sic] claimant [Wamsley] that if he did not sign the non compete contract clause as written, the claimant [Wamsley] would be discharged.
21. The claimant [Wamsley] did not take any steps to open his own barber shop.

Board’s Decision, August 16, 2007, Findings of Fact (F.F.) Nos. 2-20 at 1-2. The Board reversed the referee’s denial of benefits and granted benefits pursuant to Section 402(h) and Section 402(e) of the Law, 43 P.S. §§ 802(h) and 802(e).

I. Was Wamsley An Independent Contractor?

Initially, GBS contends3 that Wamsley was an independent contractor and ineligible for unemployment compensation benefits pursuant to Section 402(h) of the Law, 43 P.S. § 802(h).

Section 402(h) of the Law, 43 P.S. § 802(h), provides that “[a]n employe shall be ineligible for compensation for any week [i]n which he is engaged in self-employment _” (emphasis added). The term “self-employment” is not defined in the Law; “however the courts have utilized section 4(Z)(2)(B) to fill the void because its obvious purpose is to exclude independent contractors from coverage.” Beacon Flag Car Co., Inc. v. Unemployment Compensation Board of Review, 910 A.2d 103, 107 (Pa.Cmwlth.2006).

Section 4(i)(2)(B) of the Law, 43 P.S. § 753(i)(2)(B), provides:

Services performed by an individual for wages shall be deemed to be employment subject to this act, unless and until it is shown to the satisfaction of the department that-(a) such individual has been and will continue to be free from control or direction over the performance of such services both under his contract of service and in fact; and (b) as to such services such individual is customarily engaged in an independently established trade, occupation, profession or business, (emphasis added).

In Beacon Flag, this Court noted:

This provision presumes that an individual is an employee, as opposed to an independent contractor, but this presumption may be overcome if the putative employer sustains its burden of showing that the claimant was free from control and direction in the performance of his service and that, as to such service, was customarily engaged in an independent trade or business, (emphasis added).

Id. at 107.

A. Did GBS Overcome The Presumption That Wamsley Was An Employee By Showing That Wamsley Was Free From Control And Direction In The Performance Of His Services?

Control is premised upon an actual showing of control with regard to the work to be done and the manner in performing it. Here, the record and the Board’s findings clearly support the conclusion that GBS controlled or had the authority to control Wamsley’s day-to-day operations: 1) that GBS set the general barber shop hours of operation4 from 6:00 A.M. until [790]*7906:00 P.M. Tuesday through Friday and from 6:00 A.M. until 12:00 P.M. on Saturday; 2) that Wamsley was paid on a weekly basis5; 3) that GBS set the general price for a haircut at $10.00 (N.T. at 15; R.R. at 64a); 4) that GBS provided all equipment and supplies to its barbers except razors and scissors6; 5) that GBS provided its own business cards without the individual names of its barbers on it7; 6) that GBS did not exhibit any of its barbers’ names on the outside window; 7) that GBS required attendance at meetings and notice of vacations8; 8) that GBS required Wams-ley to execute an agreement that contained a non-compete clause;9 and 9) that GBS was required to have a manager on the premises to supervise the work of Wams-ley and other non-manager barbers pursuant to Section 12(a) of the Barber License Law (Law)10, 63 P.S. § 562(a). GBS faded [791]*791to overcome its burden that Wamsley was free from its control and therefore self-employed.11

B. Whether Wamsley Was Engaged In An Independently Established Trade, Occupation, Profession Or Business?

In Viktor v. Department of Labor and Industry, 586 Pa. 196, 892 A.2d 781 (2006)12, our Pennsylvania Supreme Court addressed the second criterion of Section 4(Z)(2)(B) of the Law, 43 P.S. § 753(Z)(2)(B), and determined:

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Cite This Page — Counsel Stack

Bluebook (online)
957 A.2d 786, 2008 WL 4346316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glatfelter-barber-shop-v-unemployment-compensation-board-of-review-pacommwct-2008.