Michigan Occupational Safety and Health Admin v. Yoder Family Farm

CourtMichigan Court of Appeals
DecidedAugust 25, 2022
Docket355262
StatusPublished

This text of Michigan Occupational Safety and Health Admin v. Yoder Family Farm (Michigan Occupational Safety and Health Admin v. Yoder Family Farm) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Occupational Safety and Health Admin v. Yoder Family Farm, (Mich. Ct. App. 2022).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

MICHIGAN OCCUPATIONAL SAFETY AND FOR PUBLICATION HEALTH ADMINISTRATION, August 25, 2022 9:15 a.m. Appellant,

v No. 355262 Ingham Circuit Court YODER FAMILY FARM, LC No. 19-000950-AA

Appellee

Before: GLEICHER, C.J., and SAWYER and GARRETT, JJ.

GLEICHER, C.J.

Alvin Yoder was fatally electrocuted while refilling a grain bin at the Yoder Family Farm. The Michigan Occupational Safety and Health Administration (MIOSHA) inspected the Farm and cited it for several safety violations. The Farm claims that MIOSHA lacked jurisdiction to issue the citations because Alvin was not a Farm employee. An administrative law judge and the circuit court agreed.

The Yoder Family Farm is a commercial enterprise. The adult Yoder children who work on the farm, including Alvin, are compensated for their work with food, clothing, and shelter, rather than ordinary wages. Under the economic reality test, a fact question exists regarding Alvin’s employment status. We reverse the circuit court and remand to the Michigan Board of Health and Safety Compliance and Appeals for further proceedings consistent with this opinion.

I. BACKGROUND

Alvin’s tragic death occurred in August 2017, while he was working on the Yoder Family Farm, an organic dairy farm that produces milk sold for income. The Yoder parents and their children (both adults and minors) supply the labor for the enterprise. At the time of the accident, Alvin was removing a metal pole from a grain bin. He intended to use the pole to scrape grain from the sides of the bin and was electrocuted when the metal pole contacted an overhead wire.

After the accident, a MIOSHA safety officer inspected the Farm and issued four citations for administrative safety rule violations. The citations alleged that: Alvin was an “unqualified

-1- person” working within 10 feet of an unguarded, energized overhead power line (Mich Admin Code, R 408.14005(4))1, Alvin was an untrained employee who had been exposed to a risk of electrical shock (Mich Admin Code, R 408.14002(2))2, Alvin had not been trained in safety-related work practices related to his job assignments (Mich Admin Code, R 408.14002(3)), and no “fall protection” had been offered to employees working on top of the grain bin (Mich Admin Code, R 408.13390).3 MIOSHA levied a $16,100 fine against the Farm.

The Farm contested MIOSHA’s ability to issue the citations, asserting that because Alvin was not an employee and the Farm had no employees, MIOSHA lacked jurisdiction. The dispute made its way to the administrative hearing system, where the parties stipulated to these relevant facts:

18. John and Eva May Yoder and their family operate a family dairy farm. Family members perform the tasks necessary to carry out the operations on the farm.

19. The Yoder family members who performed tasks on the family farm at the time of the accident were John Yoder (Owner), Eva May Yoder (Spouse), Rhoda Kay Yoder (daughter, age 21), Alvin Yoder[] (son, age 19), Regina Yoder[] (daughter, age 18), Leon Yoder (twin—son, age 15), Leroy Yoder (twin—son age 15), Joni Yoder (daughter, age 13), and Rose Ella Yoder (daughter, age 10).

20. Family members are not paid for the tasks they perform on the farm. Family members receive a roof over their head, food on the table, clothes on their back, and the love and support of their family.

21. Mr. John Yoder was aware that Alvin was involved in the task of refilling the grain bin at the time of the accident.

22. The Yoder Family Farm is not a business entity registered with the State of Michigan or the County of Clare, Michigan. John Yoder owns the farm. The Yoder Family Farm does not have an Employer Identification Number. Mr. and Mrs. Yoder file tax returns jointly as a married couple.

In the administrative tribunal, the Farm argued that this Court’s decision in Hottmann v Hottmann, 226 Mich App 171; 572 NW2d 259 (1997), governs whether a person is an employee under the Michigan Occupational Safety Act (the act), MCL 408.1001 et seq., and that Hottmann held that employee status requires “payment of compensation.” The Farm additionally contended

1 This rule was rescinded in 2019. 2 This rule was also rescinded in 2019. 3 This rule was rescinded in 2018.

-2- that the application of MIOSHA safety rules violated the Yoders’ religious freedom under the Free Exercise Clauses of the Michigan and United States Constitutions.4

Relying on Hottmann, the administrative law judge (ALJ) dismissed the citations, ruling that “the Hottman holding applies to the determination of the existence of an employer-employee relationship under” the act and that Hottmann stands for the proposition that the payment of compensation is an “essential element of the employer-employee relationship.” Alvin was akin to a student or a volunteer on the farm, the ALJ found, and not an employee. The ALJ did not address the constitutional issues but concluded that MIOSHA lacks the authority to inspect small farms with fewer than 10 employees, not counting family members, even if MIOSHA used only state funds for its investigation.

MIOSHA’s circuit court appeal met the same fate. The judge found Hottmann controlling and affirmed the ALJ’s finding that MIOSHA had no authority to inspect a small farm such as the Yoders’. We granted MIOSHA’s application for leave to appeal.

II. ANALYSIS

A. HOTTMANN AND THE ECONOMIC REALITY TEST

The ALJ and the circuit court erred by relying on Hottmann, a premises liability case that did not examine the issue presented in this case: whether a farm worker who is compensated with food, clothing, and shelter is an employee under an occupational safety act. In deciding whether Alvin was an employee as that term is used in the act, we adopt the economic reality test, “the most common tool for discerning whether an employer-employee relationship exists.” Buckley v Prof Plaza Clinic Corp, 281 Mich App 224, 234; 761 NW2d 284 (2008).

Our review of an agency’s final decision is limited to examining whether it is “contrary to law, is not arbitrary, capricious, or a clear abuse of discretion, and is supported by competent, material and substantial evidence on the whole record.” Vanzandt v State Employees Retirement Sys, 266 Mich App 579, 583; 701 NW2d 214 (2005). Similarly, we consider a circuit court’s review of an administrative decision only to determine whether the circuit court applied correct legal principles and the substantial evidence test was met. Id. at 585. But our interpretation and application of statutory provisions is de novo, without deference to the two judges who have considered this case. United Parcel Serv, Inc v Bureau of Safety & Regulation, 277 Mich App 192, 202; 745 NW2d 125 (2007).

The act is remedial in nature and should be liberally construed to accomplish its “broad objective . . . to provide all employees with a work site free from recognized hazards.” Barker Bros Constr v Bureau of Safety & Regulation, 212 Mich App 132, 139; 536 NW2d 845 (1995). Section 9 of the act declares, “The safety, health, and general welfare of employees are primary public concerns. The legislature hereby declares that all employees shall be provided safe and healthful work environments free of recognized hazards.” MCL 408.1009. The act applies “to all

4 The constitutional issues are not presented in this appeal, so we do not address them.

-3- places of employment in the state, except in domestic employment and in mines . . . .” MCL 408.1002(1).5

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Michigan Occupational Safety and Health Admin v. Yoder Family Farm, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-occupational-safety-and-health-admin-v-yoder-family-farm-michctapp-2022.