Last week, the Franklin County Court of Appeals found that
home caregivers were “employees” for purposes of unemployment compensation and
that the employer was responsible for contributions for the past three years. Miracle
Home Health Care, L.L.C. v. Ohio Dept. of Job & Family Servs., 2012-Ohio-5669. This was
true even though the company did not direct their daily activities, they were
permitted to work for other employers and to have their own clients and no specialized
training was required. Indeed, the
Unemployment Compensation Review Commission initially ruled in favor of the
company, but that decision was later vacated.
The evidence showed that the caregivers’ contract with the company provided
the company with control over their activities and required the submission of
weekly written reports, there was a continuing relationship between the
parties, the caregivers’ work was part of the company’s regular services, the
relationship was at-will and the caregivers could not experience profit or loss
by subcontracting their services, etc. This was sufficient evidence to hold the
company liable as an “employer.”
The statutory definition of "employer" for unemployment
compensation purposes includes limited liability companies which have "in
employment at least one individual." O.R.C. § 4141.01(A)(1)(a). The alleged employer bears the burden of
proving that an individual is not covered by the statute. Ohio Administrative Code §4141-3-05 utilizes
the 20 common law factors as "guides" for determining whether
sufficient direction or control exists to create an employer-employee
relationship under the statute.
NOTICE: This
summary is designed merely to inform and alert you of recent legal developments.
It does not constitute legal advice and does not apply to any particular
situation because different facts could lead to different results. Information
here can change or be amended without notice. Readers should not act upon this
information without legal advice. If you have any questions about anything you
have read, you should consult with or retain an employment attorney.
