Delivery drivers being directed and controlled are not independent contractors. The Division of Employment and Training made a determination that 220 drivers working for a delivery business were employees for unemployment tax liability purposes, notwithstanding language in the drivers’ contracts stating they were independent contractors. The court of appeals upheld the administrative ruling based on the following facts: 1) the drivers were not customarily engaged in the delivery business, 2) they did not offer those services to others, 3) they were paid under their own names, 4) the business set prices, determined clients, and required compatible cell phones, among others, and 5) employer could terminate contracts without penalty, demonstrating a right to control the drivers. Thus, the drivers were employees for unemployment tax purposes under CRS 8-70-115(1)(b).
Tag Archives: Unemployment
Western Logistics, Inc., d/b/a Diligent Delivery Systems, v. Industrial Claim Appeals Office, 2012COA186 (October 25, 2012)
Communications Workers of America, Local 7750 v. Industrial Claim Appeals Office 2012COA148 (August 30, 2012)
Unions are employers too, and, in this case, contested an award of unemployment compensation to a former employee – its president. Claimant worked for both Quest and as the union president, but was only paid by one or the other for the time spent on each job respectively. When the union merged and restructured, he lost his employment as union president. He filed for unemployment benefits from the union, which were granted. On appeal, the union argued that it only replaced Quest’s wages not that it paid “wages” itself. The union did not argue that it was not an employer or that it did not provide employment to Claimant. The court of appeals upheld the grant of benefits for two main reasons: 1) he received payment for required services on behalf of the union and, 2) failure to consider payments as wages could result in lost unemployment benefits from Quest too, by reducing available benefits.