MYERS VS. RENO CAB CO., INC. C/W 80449

2021 NV 36
CourtNevada Supreme Court
DecidedJuly 29, 2021
Docket80449
StatusPublished

This text of 2021 NV 36 (MYERS VS. RENO CAB CO., INC. C/W 80449) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MYERS VS. RENO CAB CO., INC. C/W 80449, 2021 NV 36 (Neb. 2021).

Opinion

137 Nev., Advance Opinion 34' IN THE SUPREME COURT OF THE STATE OF NEVADA

JEFF MYERS, INDIVIDUALLY AND No. 80448 ON BEHALF OF OTHERS SIMILARLY SITUATED, Appellant, FILE vs. JUL 2 9 2021 RENO CAB COMPANY, INC., Respondent. H I EF DEPUTY CLERK

ARTHUR SHATZ AND RICHARD No. 80449 FRANTIS, INDIVIDUALLY AND ON BEHALF OF OTHERS SIMILARLY SITUATED, Appellants, vs. ROY L. STREET, INDIVIDUALLY AND D/B/A CAPITAL CAB, Respondent.

Consolidated appeals from a district court order granting summary judgment in minimum wage matters. Second Judicial District Court, Washoe County; Elliott A. Sattler, Judge. Reversed and remanded.

Leon Greenberg Professional Corporation and Leon M. Greenberg, Las Vegas, for Appellants.

Simons Hall Johnston PC and Mark G. Simons, Reno, for Respondents.

BEFORE THE SUPREME COURT, EN BANC. SUPREME COURT OF NEVADA

101 I947A

' OPINION

By the Court, STIGLICH, J.: The central issue in these consolidated cases is a familiar one: are the appellants "employeee or "independent contractors," and how do we tell? The answer will depend on the legal context. To say that a worker is an "employee for the purpose of a particular law usually means that the worker falls within that law's scope of coverage. But different laws may have different scopes of coverage, and so the same worker may be an "independent contractor" as concerns one law and an "employee" as concerns another. In this opinion, we clarify that employee status for purposes of the Minimum Wage Amendment to the Nevada Constitution (MWA) is determined only by the "economic realities" test, but employee status for purposes of statutory waiting time penalties for late-paid wages may be affected by the presumption set forth in NRS 608.0155. We reaffirm that a contractual recitation that a worker is not an employee is not conclusive under either test. Finally, employee status for the purposes of either the MWA or NRS Chapter 608 is not affected by the Nevada Transportation Authority's (NTA) approval of a taxi lease under NRS 706.473. Because the district court held that the NTA's approval of appellants' leases foreclosed further inquiry into their employee status, we reverse and remand.

'Cf. Richard R. Carlson, Why the Law Still Can't Tell an Employee When It Sees One and How It Ought to Stop Trying, 22 Berkeley J. Emp. & Lab. L. 295 (2001).

SUPREME COURT OF NEVADA 2 i01 I947A <4060

••• BACKGROUND The respondents are taxicab companies that lease taxicabs to the appellant drivers under agreements approved by the NTA, pursuant to NRS 706.473.2 Each agreement contains the following language: RELATIONSHIP. Neither Party is the partner, joint venture, agent, or representatives of the other Party. LESSEE is an independent contractor. LEASING COMPANY and LESSEE acknowledge and agree that there does not exist between them the relationship of employer and employee, principal and agent, or master and servant, either express or implied, but that the relationship of the parties is strictly that of lessor and lessee, the LESSEE being free from interference or control on the part of LEASING COMPANY. Each lease agreement requires the driver to operate the taxicab for at least three days per week, unless the driver obtains approval for an alternate schedule. On any day that the driver operates the taxicab, the driver must pay to the leasing company a nominal fee of 5 or 10 dollars, plus one-half of the driver's "total book" (i.e., gross receipts) for the day, plus gas and administrative fees. The lease agreement states that drivers have the option, but are not required, to use the companies dispatch service to acquire passengers. The drivers sued in 2015, alleging that their take-home pay was often less than the minimum hourly wage required by the MWA. The MWA only applies to "employees." Nev. Const. art. 15, § 16. The drivers alleged

2NRS 706.473(1) provides in relevant part that "a person who holds a certificate of public convenience and necessity which was issued for the operation of a taxicab business may, upon approval from the Authority, lease a taxicab to an independent contractor who does not hold a certificate of public convenience and necessity." SUPREME COURT OF NEVADA 3 (0) I 947A aiSPID

maw r ti i st r 1,, 9; § 42.14%1 tgii;atli4g.4- :qt: that, notwithstanding the recital in the lease agreement that they were independent contractors, they were in fact employees under the "economic realities" test we elucidated the previous year in Terry v. Sapphire Gentlemen's Club, 130 Nev. 879, 336 P.3d 951 (2014). Although Terry involved the statutory right to a minimum wage, see id. at 881, 336 P.3d at 953; see also NRS 608.250, the drivers argued that the same test should apply to their MWA claims. In addition, the drivers alleged that they were not paid all the wages they were owed at the time of separation, entitling them to waiting time penalties under NRS 608.040. The cab companies moved for summary judgment, arguing that the drivers were independent contractors, not employees, for the purposes of the minimum wage laws. The district court initially denied the motion, finding that disputed issues of material fact prevented summary judgment. But it later granted the cab companies renewed motion. It relied solely on the fact that the drivers held NTA-approved taxicab leases, reasoning that when the NTA approves a lease pursuant to NRS 706.473, it confirms that the parties to the lease have entered a "statutorily created independent contractor relationship." See Yellow Cab of Reno, Inc. v. Second Judicial Dist. Court, 127 Nev. 583, 592, 262 P.3d 699, 704 (2011). In the district coures view, a worker who is an independent contractor under NRS 706.473 is not an employee for any purpose, and thus the protections afforded to "employees by the MWA and by NRS Chapter 608 did not apply. The drivers appealed, and this court has consolidated these appeals. DISCUSSION The drivers stated two claims: one claim for unpaid minimum wages under the MWA, and one claim for waiting time penalties under NRS 608.040. The drivers are entitled to assert each claim only if they are "employees" under the relevant law. We first consider whether the SUPREME COURT OF NEVADA 4 105 1947A

- _ statement in the drivers leases that they are independent contractors is conclusive as to employee status under these laws. Second, we consider whether the NTA's approval of the drivers' leases under NRS 706.473 is conclusive as to employee status under these laws. Finally, having held in Doe Dancer I v. La Fuente, Inc., 137 Nev., Adv. Op.

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2021 NV 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myers-vs-reno-cab-co-inc-cw-80449-nev-2021.