Michigan Workers' Compensation Court Cases - November 2009

Michigan Workers' Compensation Court Cases - November 2009

by: Gerald (Jerry) Marcinkoski, MSIA Executive Secretary , Attorney at Lacey & Jones

The Supreme Court released its order today in Loos v JB Installed Sales Inc.

The issue in the case is the extent to which, if at all, a Magistrate can rely upon income tax records in determining whether the claimant is an "employee" for workers' compensation purposes or an independent contractor (and, thus, not entitled to workers' compensation). In a 4-3 ruling, the Court reversed the Court of Appeals and the Workers' Compensation Appellate Commission and reinstated the Magistrate denial of benefits. The Magistrate had found plaintiff's income tax filings, which revealed plaintiff was paid 1099 income rather than W2 wages, persuasive on the point. The Magistrate did not rely exclusively on income tax filings but did lay heavy emphasis on them. The Supreme Court said this was proper because income tax "records are directly relevant to the question of employee status." The Supreme Court majority was comprised of Justices Young, Corrigan, Markman, and Weaver. The three dissenters-in-part agreed tax records are relevant but said the Appellate Commission was correct to say the Magistrate was too influenced by "labels."

by: Gerald (Jerry) Marcinkoski, MSIA Executive Secretary , Attorney at Lacey & Jones