Stafford Trucking, Inc. v. State, Department of Industry, Labor & Human Relations

306 N.W.2d 79, 102 Wis. 2d 256, 1981 Wisc. App. LEXIS 3294
CourtCourt of Appeals of Wisconsin
DecidedApril 21, 1981
Docket80-1301
StatusPublished
Cited by52 cases

This text of 306 N.W.2d 79 (Stafford Trucking, Inc. v. State, Department of Industry, Labor & Human Relations) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stafford Trucking, Inc. v. State, Department of Industry, Labor & Human Relations, 306 N.W.2d 79, 102 Wis. 2d 256, 1981 Wisc. App. LEXIS 3294 (Wis. Ct. App. 1981).

Opinion

VOSS, P.J.

This is an appeal from the circuit court of Waukesha county’s affirmance of a ruling of an appellate tribunal of the Department of Industry, Labor & Human Relations that “owner-operators” of semitractors who leased their services to Stafford Trucking, Inc. were employees of Stafford and that Stafford was liable for unemployment compensation contributions in the amount of $3,214.56. The sole issue raised by the instant appeal is whether the conclusion that the owner-operators are employees for unemployment compensation purposes under sec. 108.02(3), Stats., is correct. We affirm.

A deputy of DILHR made an initial determination that the owner-operators of the tractors pulling Stafford’s trailers were employees of Stafford. This determination was appealed by Stafford, and following a hearing, an examiner, acting as an appeal tribunal, affirmed the decision of the deputy. The decision of the examiner was then appealed to the Labor and Industry Review Commission and that commission affirmed the findings and decision of the appeal tribunal. The decision of the commission was appealed to the circuit court for Waukesha county pursuant to sec. 108.09(7) and sec. 102.23, Stats. The circuit court for Waukesha county entered a judgment affirming the decision of the review commission. Stafford appeals from that judgment.

Stafford Trucking, Inc. is a Wisconsin corporation engaged in interstate trucking of foundry sand. In order to facilitate this commercial enterprise, Stafford owns forty-five flatbed and pneumatic tank semitrailers. Stafford holds L.C. No. 41346 from the Wisconsin Public Service Commission and is thereby authorized to conduct its business in this state. Stafford also owns fifteen *258 semitractors which are driven by conceded employees of Stafford. These drivers are not the subject of this action.

In order to fully utilize its forty-five semitrailers, Stafford also engages the services of truckdrivers who own their own tractors and who are termed “owner-operators.” These drivers pull Stafford trailers pursuant to a written contractual lease agreement. Such leases are for a one-year term with an option to renew. Many of the terms of the leases are prescribed by regulations of the Wisconsin Public Service Commission. Some pertinent provisions of the leases read as follows:

8. The LESSEE [Stafford Trucking] expressly reserves the right to control the manner, means and details of, and by which the driver of such leased equipment performs his service, as well as the ends to be accomplished.

9. The LESSOR [owner-operators] agrees that during the term of this Lease, the LESSEE shall have complete possession and control of the vehicle/s subject to this Lease, and that the LESSOR will not cause or permit such vehicle's to be operated by anyone other than the LESSEE.

12. The LESSEE agrees that during the term of this Lease, the leased vehicle's shall be solely and exclusively under the possession, direction, and control of the LESSEE who shall assume full common carrier responsibility for the operation of such vehicle/s as prescribed by I.C.C. Ex Parte No. MC-483, as amended.

15. This Lease may be cancelled by either party hereto by thirty (30) days written notice to the other. . . .

The owner-operators operating pursuant to Stafford’s authority are required to bear decals showing Stafford’s name and L.C. number. The owner-operators are instructed how to operate the pneumatic trailers prior to being allowed to pull Stafford’s trailers. Stafford has authority to require the owner-operators to work fixed schedules or nights or weekends. If a driver refuses to *259 take loads as requested, Stafford can terminate the lease under the thirty days notice provision. Stafford can also terminate the lease of a driver if that driver maintains his truck in an unsafe manner or operates the truck dangerously. Additionally, Stafford directs when freight is to be picked up or delivered at a particular time. Stafford does all the billing and collecting from its hauling customers. The owner-operators are paid seventy-five percent of whatever the load or run pays.

Owner-operators are allowed to haul for other trucking companies on their return trips to Wisconsin but only with the express or tacit permission of Stafford Trucking. If hauling is done on the return trips, the drivers are required to pay ten percent of their revenue from the trip over to Stafford.

All citations for overweight trucks are issued directly to Stafford because the trucks are operating under its authority. Public liability and property damage insurance on the trucks is issued on a blanket basis in Stafford’s name. Stafford is reimbursed for insurance costs through a deduction in the owner-operators' pay. Licenses on the owner-operators’ trucks are jointly in the names of Stafford and the drivers because the drivers are unable to obtain truck licenses unless they are under a lease agreement with a carrier holding proper operating authority.

Section 108.02(3) (c), Stats., states that subsection 108.02(3) is to be used for determining an employing unit’s liability under the contribution provisions of ch. 108. Section 108.02(3) (a), Stats., defines “employee” as “any individual who is or has been performing services for an employing unit, in an employment, whether or not the individual is paid directly by such employing unit; except as provided in par. (b) or (e).”

Subsection (b) of sec. 108.02(3), Stats., states that an individual will not be deemed an “employee” if: (1) such individual has been and will continue to be free *260 from the employing unit’s control or direction over the performance of his services both under his contract and in fact, and (2) such services have been performed in an independently established trade, business or profession in which the individual is customarily engaged. This provision, therefore, demands that the two part test be met if a worker wants to avoid the general definition of the term “employee.” The issue presented on this appeal is whether Stafford’s owner-operators satisfy both paragraphs one and two of sec. 108.02(3) (b), Stats., and thereby qualify as independent businessmen so as to avoid the general “employee” definition. We conclude that they fail to satisfy either paragraph of sec. 108.02(3) (b), Stats.

At the outset, we note that our review of the circuit court and commission’s actions is limited. We do not deal with the question of whether the circuit court made the right decision. Our task is merely to determine whether the commission’s decision was correct. Liberty Trucking Co. v. ILHR Department, 57 Wis.2d 331, 342, 204 N.W.2d 457, 463-64 (1973). We, therefore, owe no special deference to the decision of the circuit court.

With respect to our review of the commission’s determination :

Findings of fact made by the department under Ch. 108 are conclusive if supported by any credible evidence in the record. R.T. Madden, Inc. v. I.L.H.R. Dept., 43 Wis.2d 528, 547, 169 N.W.2d 73 (1969).

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Bluebook (online)
306 N.W.2d 79, 102 Wis. 2d 256, 1981 Wisc. App. LEXIS 3294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stafford-trucking-inc-v-state-department-of-industry-labor-human-wisctapp-1981.