DocketNumber: Docket 17, Calendar 46,517
Citation Numbers: 75 N.W.2d 874, 345 Mich. 455
Judges: Black, Boyles, Carr, Dethmers, Kelly, Reid, Sharpe, Smith
Filed Date: 4/2/1956
Status: Precedential
Modified Date: 8/21/2023
The controlling question here for decision is whether one Rebecca Cohen, who was paid by plaintiffs-appellants $1 for each photograph negative she “retouched” for the studio, was their employee, or an independent, contractor, under the
The usual statutory processes have been followed within the defendant commission, culminating in the appeal to this Court from a judgment entered in the circuit court for Wayne county holding that Rebecca Cohen was an employee of the plaintiffs within the meaning of section 42(1) and section 44(1) of the act.
Plaintiffs, doing business as the H. A. Powell Studios, are engaged in the business of taking pictures, developing, retouching and printing portraits for the general public. Most of their work is done in their studios in Detroit. However, they do not have sufficient space in their studios to accommodate all of the work of retouching negatives and some of it is done by other retouchers than those regularly employed by plaintiffs on their premises. Rebecca Cohen applied for and obtained negatives from plaintiffs to take home, to be retouched by her at home and returned. Plaintiffs’ business has tended to specialize, they principally do portrait work. A large share of this consists of photographing students for high school annuals. After the pictures are taken and the negatives developed, further work is required on them which is known as retouching.
Plaintiffs also employ a number of “inside” retouchers. The number of these apparently varies from time to time. They work regular hours and are paid on the same piecework basis as the outside retouchers. Rebecca Cohen was given negatives by appellants which she took home and worked on. She-did no work on the appellants’ premises. She owned all of her own equipment. As an outside retoucher, she was not required to follow any schedule or account to appellants for her time. She was allowed to take as many negatives home as she wanted, the only restriction being that at the end of 7 days all
We have recently passed upon a situation which seems to have been sufficiently identical with the above facts, and decision here is controlled by Michigan Bulb Co. v. Unemployment Compensation Commission, 337 Mich 292.
Necessarily, there will always be some variation in the facts and circumstances which can be claimed to distinguish each case from previous decisions. This is true in the case at bar. However, we do not find in the instant case any substantial difference from the Michigan Bulb Case in its facts and circumstances which would lead us to conclude that the so-called Michigan Bulb Case, supra, should not be followed in the instant case. Fundamentally, decision must be based on the conclusion announced by this Court in 1940 in Lewis v. Summers, 295 Mich 20, 23, where Mr. Justice Wiest, in writing for the
“This Court has held that the test of the relationship [employer and employee] is the right to control, whether in fact exercised or not. Tuttle v. Embury-Martin Lumber Co., 192 Mich 385 (Ann Cas 1918C, 664).”
The record in the instant case does not show sufficient facts and circumstances to establish the right of the plaintiffs to control the acts of Rebecca Cohen, for us to conclude that she was an employee of the plaintiffs, and not an independent contractor. The '2 incidents present in the case at bar on which the defendants mainly rely to establish such essential right of the plaintiffs to control the work are that Rebecca Cohen had to return the negatives within 7 days, and that the work must have been satisfactory according to the instructions of the plaintiffs. But these 2 criteria might apply equally to an independent contractor as well as to an employee. Otherwise, Rebecca Cohen was entirely “on her own” insofar as there was any control over her work by the plaintiffs. The right of the plaintiffs to set the time within which the work must be done, and to decide whether or not the finished product was satisfactory to the plaintiffs, is not sufficient to establish that she was an employee, and not an independent contractor.
Our decision in the Michigan Bulb Case was handed down after the lower court had decided that Rebecca Cohen was an employee, but was later brought to the attention of that court by a petition for a rehearing. The trial court then affirmed its decision, filing an opinion to distinguish the Michigan Bulb Case from the instant case on the aforesaid grounds, neither of which is considered as controlling of decision. While it is true that plaintiffs
In the view we take of the controlling question in this case, it is not necessary to pass, on other grounds argued in the briefs, including the impact of the Federal act of congress on the question here, brought into the argument by counsel, under section 42 (6) (n) of the act. See Pazan v. Unemployment Compensation Commission (decided December 1, 1955), 343 Mich 587. Furthermore, appellants had sought and received a ruling from the United States treasury department, as follows:
“Receipt is acknowledged of your letter dated November 19, 1943, regarding the status of 'retouchers under the withholding provisions of the current tax payment act. You state that these persons come to your studio to pick up negatives which they take home to retouch. It appears that these persons perform similar services for other studios and that you have'no control over time and place of their work.
“From the information submitted, it is the opinion of this office that these persons are independent agents. Employers are required to withhold income tax from wages paid to employees “only. No with*462 holding is required from amounts paid to independent agents.”
Obviously, the question whether an individual is an employee or an independent contractor, under the provisions of the employment security act, is. debatable, and must depend on the facts and circumstances of each case. The recent Michigan Bulb Case is decisive of the question here. See, also, Bonifas-Gorman Lumber Co. v. Unemployment Compensation Commission, 313 Mich 363; Louis A. Demute, Inc., v. Employment Security Commission, 339 Mich 713.
Reversed and remanded for entry of an order setting aside the judgment, and for entry of a judgment setting aside the decision of the appeal board that Rebecca Cohen was an employee of the plaintiffs. No costs, a public question being involved.
PA 1936 (Ex Sess), No 1, as amended (CL 1948 and CLS 1954, § 421.1 et seq. [Stat Ann 1950 Eev and Stat Ann 1953 Cum Supp § 17.501 et seq.]).
CLS 1954, §§ 421.42(1),. 421.44(1) (Stat Ann 1953 Cum Supp §§ 17.545[1], 17.548[1]). The subsequent amendment by PA 1955, No 281, effective July 15, 1955, does not apply here.