Sanchez Lopez v. D.C. Dep't of Employment Services

District of Columbia Court of Appeals·Decided August 8, 2024·No. 22-AA-0765·Published

Opinion

Notice: This opinion is subject to formal revision before publication in the Atlantic and Maryland Reporters. Users are requested to notify the Clerk of the Court of any formal errors so that corrections may be made before the bound volumes go to press.

DISTRICT OF COLUMBIA COURT OF APPEALS No. 22-AA-0765

JOSE SANCHEZ LOPEZ, PETITIONER, V.

DISTRICT OF COLUMBIA DEPARTMENT OF EMPLOYMENT SERVICES (WORKERS’ COMPENSATION), RESPONDENT,

and

CRIS & G PAINTING, LLC, INTERVENOR.

On Petition for Review

of a Decision and Order of the District of Columbia Department of Employment Services Compensation Review Board (2022-CRB-000038)

(Submitted October 5, 2023 Decided August 8, 2024)

Carlos A. Espinosa and Ivan M. Waldman were on the brief for petitioner.

Brian L. Schwalb, Attorney General for the District of Columbia, Caroline S.

Van Zile, Solicitor General, Ashwin P. Phatak, Principal Deputy Solicitor General, and Thais-Lyn Trayer, Deputy Solicitor General, filed a Statement in Lieu of Brief in support of respondent.

Harry A. Suissa filed a Statement in Lieu of Brief in support of intervenor.

Before BLACKBURNE-RIGSBY, Chief Judge, and BECKWITH and EASTERLY, Associate Judges.

EASTERLY, Associate Judge: To be entitled to compensation under the District of Columbia Workers’ Compensation Act, D.C. Code §§ 32-1501 to 32-1545, a claimant must be an “employee,” a term of art under the Act. An “employee” is statutorily defined to include “every person . . . in the service of another under any contract of hire or apprenticeship, written or implied, in the District of Columbia,” but not one “engaged in employment that is casual and not in the usual course of trade, business, occupation, or profession of the employer.” D.C. Code § 32-1501(9)(E). To determine whether an individual is a statutory employee, the Department of Employment Services (“DOES”) has, with this court’s acquiescence, employed a “relative nature of the work test” that examines both the nature and character of the claimant’s work and the relationship of the claimant’s work to the purported employer’s business. The aim of this test is to discern where best to allocate the cost of any injury by the putative employee with an eye toward requiring business owners to internalize costs of on-the-job injuries and to provide a safety net to workers.

Although we accept the “relative nature of the work” test to determine whether an individual is an employee or a casual worker (or independent contractor), we conclude that the Compensation Review Board (“CRB”) did not in this case apply

the test correctly, overlooked material facts, and erroneously concluded that petitioner Jose Sanchez Lopez was not an employee eligible for workers’ compensation benefits. Accordingly, we reverse the denial of Mr. Sanchez Lopez’s claim for benefits and remand for further proceedings consistent with this opinion.

I. Facts and Procedural History

While performing demolition work for Cris & G Painting at a building on Connecticut Avenue on June 6, 2020, Mr. Sanchez Lopez fell from the near-top of an approximately six-foot-tall ladder. As a result of this fall, Mr. Sanchez Lopez broke his left arm and did not return to work until April 12, 2021. Cristian Sanchez, the owner of Cris & G Painting, continued for a time to pay wages to Mr. Sanchez Lopez after the accident—payment that corresponded with the seven weeks Cris & G Painting was paid by the general contractor, Foundry Construction (“Foundry”), to do work (totaling $72,131.62) at the Connecticut Avenue site. Mr. Sanchez Lopez then filed a claim for temporary total disability benefits from June 7, 2020, to April 12, 2021, and the payment of causally related medical expenses. Foundry Construction 1 applied for a formal hearing.

At the start of the hearing, Foundry and Cris & G Painting acknowledged that

1 Foundry Construction and its insurer, Erie Insurance, settled with Mr. Sanchez Lopez and were subsequently dismissed as parties to this suit.

they were contesting neither the nature and extent of Mr. Sanchez Lopez’s disability nor the causal connection between his disability and the work-related accident. Rather, the sole issue they sought to litigate was whether an employer/employee relationship existed between Mr. Sanchez Lopez and Cris & G Painting or Foundry.

Cristian Sanchez testified to the following: he started his business, Cris & G Painting, in 2012 and “almost exclusively” worked with Foundry; his company was “primarily a painting company” but would engage “day[-]labor employees” “whenever [Foundry] . . . request[ed] . . . demolition work”; “the work of demolition [wa]s something occasional, maybe a couple of times a year,” that, per an “agreement” with Foundry, he would hire “day labor employees” to do on a “week-to-week” or “day-to-day” basis; and, for painting work, Cris & G “ha[d] a couple of employees that [we]re steady throughout the year” and whom were given 1099 forms for tax purposes. 2

Regarding his employment relationship with Mr. Sanchez Lopez, Cristian Sanchez testified that he and Mr. Sanchez Lopez had “worked together a few times for a couple of weeks at a time on different occasions” and on those occasions, he would generally pick Mr. Sanchez Lopez up at Langley Park Plaza, “where most of

2 This type of form is “commonly referred to as an ‘independent contractor’s tax return.’” Hickey v. Bomers, 28 A.3d 1119, 1124 n.2 (D.C. 2011).

the day laborers often h[u]ng out, and . . . look[ed] . . . and wait[ed] for work”; Mr. Sanchez Lopez “work[ed] with [Cris & G Painting] only during those times that there was demolition construction, . . . with the exception of perhaps once, where he worked with [the company] in painting” because there was “lots of work that [they] had to do”; “whenever there was demolition work available,” Cristian Sanchez “would call [Mr. Sanchez Lopez], and [Mr. Sanchez Lopez] would always be at the plaza,” although “sometimes when he was at home [Cristian Sanchez] would swing by and pick him up”; every day Cristian Sanchez had work for Mr. Sanchez Lopez, Cristian Sanchez would pick up Mr. Sanchez Lopez and drive him to the job site; and, on June 2, 2020, Cristian Sanchez hired ten workers, including Mr. Sanchez Lopez, for a demolition project which was estimated to last two to six weeks.

Testifying on his own behalf, Mr. Sanchez Lopez stated that he had “done [demolition] work with [Cris & G Painting] in the past,” and also worked “a few days as a helper in painting.” For prior jobs, he had worked for Cristian Sanchez for a $140 daily rate, but he negotiated a $150 rate for the demolition project that he worked on from June 2 until the date of his injury. According to Mr. Sanchez Lopez, Cristian Sanchez provided the instructions, tools, and schedule for the June 2020 project. Mr. Sanchez Lopez acknowledged that whenever he was not performing work for Cristian Sanchez, he “would go to the plaza . . . and . . . wait there to see if

someone would come by and provide [him] work for the day.” He acknowledged that he was free to “accept or reject” demolition jobs whenever Cristian Sanchez called him. And he testified that Cristian Sanchez had told him “that right after this [June 2020] work project, that there was another building that [they] would move to, [an] apartment building that was coming up.”

Adding to this evidentiary picture, counsel for Mr. Sanchez Lopez submitted exhibits reflecting payments by Cris & G Painting to him or on his behalf. These exhibits included checks from June and July 2020, totaling $4,450, checks from January and February 2020 for six weeks of work, totaling $3,620, and receipts for some of Mr. Sanchez Lopez’s medical expenses.

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