New York State Appellate Division Reverses Administrative Ruling that Delivery Company was Liable for Unemployment Insurance Contributions

From Segal McCambridge –  Secal McCambridge reports that one of its shareholders, Ted Eder, won a reversal by the New York State Appellate Division of an administrative decision that a driver for a delivery service was an employee and not an independent contractor.  It writes:

“The individual claimant provided contract delivery services for ADS, a business that sends lost luggage from airports to its owners. After his alleged employment ended, the claimant applied for and was granted unemployment insurance benefits.  ADS objected, saying that the claimant was an independent contractor because he paid all expenses associated with his delivery work, including the costs of leasing and maintaining his vehicle, fuel, tolls, insurance, maintenance and cell phone.  He was also not trained, nor did ADS impose any conditions over how he performed his job.  He was allowed to hire others to perform work, did not work a fixed schedule, and had the right to accept or reject assignments and perform work for any other company.  The Board found claimant to be an employee.

The Appellate Division, in a rare reversal of a Board Panel decision, held that the Board abused its discretion because of the lack of evidence that ADS exercised sufficient control over the claimant to establish an employer-employee relationship. The reversal is an important win for the courier and messenger industry on independent contractors. Read the full decision here…”

Read the full story at New York Shareholder Ted Eder Wins New York State Appellate Division Reversal for a Delivery Company on Independent Contractor Basis  

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