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Rommae Hayes v. Ginger C, LLC

Decision date: October 12, 2018Injury #13-10489415 pages

Summary

The Labor and Industrial Relations Commission affirmed the Administrative Law Judge's decision denying workers' compensation benefits to Rommae Hayes, finding the employee was not a covered worker under Missouri law. Although the parties stipulated to a work-related injury on June 26, 2013, the majority concluded Ginger C, LLC was not subject to the Workers' Compensation Law based on the employee's status as an independent contractor rather than an employee.

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Third-Party Injury Check

This workers' comp decision may point to a separate injury claim.

  • A driver, contractor, property owner, or equipment company may share fault.
  • The injury involved a vehicle, unsafe premises, defective equipment, or a non-employer vendor.
  • A serious injury or death may need both benefits review and civil-claim analysis.

Caption

Issued by THE LABOR AND INDUSTRIAL RELATIONS COMMISSION

FINAL AWARD DENYING COMPENSATION

(Affirming Award and Decision of Administrative Law Judge)

Injury No.: 13-104894

Employee: Rommae Hayes

Alleged Employer: Ginger C, LLC

Insurer: None

Additional Party: Treasurer of Missouri as Custodian

of Second Injury Fund

The above-entitled workers' compensation case is submitted to the Labor and Industrial

Relations Commission (Commission) for review as provided by § 287.480 RSMo.

Having reviewed the evidence and considered the whole record, the Commission finds

that the award of the administrative law judge is supported by competent and

substantial evidence and was made in accordance with the Missouri Workers'

Compensation Law. Pursuant to § 286.090 RSMo, the Commission affirms the award

and decision of the administrative law judge dated December 6, 2017, and awards no

compensation in the above-captioned case.

The award and decision of Administrative Law Judge Kathleen M. Hart, issued

December 6, 2017, is attached and incorporated by this reference.

Given at Jefferson City, State of Missouri, this 12th day of October 2018.

LABOR AND INDUSTRIAL RELATIONS COMMISSION

SEPARATE CONCURRING OPINION FILED

Robert W. Cornejo, Chairman

Reid K. Forrester, Member

DISSENTING OPINION FILED

Curtis E. Chick, Jr., Member

Attest:

Secretary

Employee: Rommae Hayes

SEPARATE CONCURRING OPINION

I did not participate in the August 8, 2018, oral argument in this matter, held prior to my appointment to the Commission. However, I have reviewed the evidence, read the briefs of the parties, listened to an audio recording of the oral argument, and considered the whole record. Based on my review of the evidence as well as my consideration of the relevant provisions of the Missouri Workers' Compensation Law, I believe the administrative law judge's decision in this case should be affirmed.

Robert W. Cornejo, Chairman

Impry No.: 13-104894

Employee: Rommae Hayes

DISSENTING OPINION

I have reviewed and considered all of the competent and substantial evidence on the whole record. Based on my review of the evidence as well as my consideration of the relevant provisions of the Missouri Workers' Compensation Law, I disagree with the majority's denial of compensation in this case.

Based on the employee's propensity to exaggerate and minimize details of his criminal history, the majority finds he is not credible. Relying on employer's witnesses, the majority concludes that the employee is not a covered worker and that employer Ginger C is not subject to the Workers' Compensation Law.

At hearing, the parties stipulated that "[O]n June 26, 2013, while in the employment of Ginger C, LLC, claimant sustained an injury by accident in Columbia, Missouri (emphasis added)."[^1]

The majority makes the following fact-findings relating to events surrounding the employee's relationship with employer Ginger C and his undisputed June 26, 2013, work injury:

- Nahkle Asmar, owner of Ginger C, has been a professor at the University of Missouri for 30 years ... [H]e created Ginger C as a side rental business several years ago and currently owns approximately 20 rental houses and apartments.

- The company's sole income is rent. Ginger C does not perform construction ... [It] hires contractors to repair and remodel its buildings for rental on an as needed basis.

- Ginger C had no employees in 2013 and did not issue any W2s.

- Claimant worked sporadically for Ginger C from April 1, 2013, through July 2013. His work ranged from changing light bulbs to full remodels ... Claimant's hours worked were erratic and typically less than 40 hours a week.

- Roland Nabhan ... began working as an independent contractor for Ginger C in 2013. ... Mr. Nabhan had his own tools and bid jobs for Ginger C. He was free to take jobs from other companies and turn down jobs from Ginger C. He worked from job to job, was paid by the job and sometimes paid for the materials. Mr. Asmar did not control how Mr. Nabhan performed his job.

- In June 2013, Mr. Asmar purchased the Hinkson property, the site of the injury in question. A contractor gave him a bid to repair the basement floor. Claimant and Roland Nabhan described themselves as concrete experts and outbid the initial contractor.

- Mr. Nabhan worked with Claimant and [another worker named] Mr. Magee on the Hinkson property concrete job. Mr. Nabhan arranged for delivery of the concrete and tools.

[^1]: Transcript, 5.

Injury No.: 13-104894

Employee: Rommae Hayes

- 2 -

- On June 26, 2013, Mr. Magee was pouring the concrete into the basement, and as Claimant smoothed it out, some of the concrete got in his boots and burned him.

- [Mr. Asmar] was not present when the concrete work was performed, and he did not control the way Claimant did this job, or any job. Mr. Asmar did not provide the tools, did not own any tools or machines, and did not control the hours worked.

- [Employee] went to the Emergency Room and was diagnosed with alkali burns. Claimant was admitted to the burn unit and had skin grafts performed on both legs. Claimant spent four days in the hospital, and had follow up care with a burn specialist.²

Section 287.030.1 defines "employer" for purposes of the Workers' Compensation Law as:

(1) Every person, partnership, association, corporation, limited liability partnership or company ... using the service of another for pay.

(3) Any of the above-defined employers must have five or more employees to be deemed an employer for purposes of this chapter... except that construction industry employers who erect, demolish, alter or repair improvements shall be deemed an employer for purposes of this chapter if they have one or more employees.

Based on the above-cited facts, the majority concludes employee was not an "employee" under the Workers' Compensation Law. The majority presumably bases its decision on a finding that employee was acting as an independent contractor at the time of his June 26, 2013, injury.

The majority further concludes that Ginger C is not an employer under the Law. In so finding, it cites the following: (1) Typically only three men worked on Mr. Asmar's properties; (2) Ginger C did not hire any full-time employees; (3) Ginger C's primary business purpose and sole income is apartment rental; (4) Ginger C did not build new construction or rehab and "flip" houses; and (4) Ginger C was not hired to perform construction work.³ Based on these facts the majority affirms the administrative law judge's finding that, pursuant to § 287.030.1, Ginger C does not have five or more employees and is not a construction industry employer.

Section 287.040.1 provides:

  1. Any person who has work done under contract on or about his premises which is an operation of the usual business which he there carries on shall be deemed an employer and shall be liable under this

² See ALJ's Award, pp. 4-7.

³ Id., p. 9.

Implyeer: Rommae Hayes

- 3 -

chapter to such contractor, his subcontractors, and their employees, when injured or killed on or about the premises of the employer while doing work which is in the usual course of his business.

In *McCracken v. Wal-Mart Stores East, LP*, 298 S.W. 3d 473, 480 (Mo. 2009) the Missouri Supreme Court noted:

> [Section 287.040.1] is designed to prevent employers from evading the Act's requirements by hiring independent contractors to perform work the employer otherwise would hire ordinary employees to perform. *Bass*, 911 S.W.2d at 619. It does so by defining the company that hires the independent contractor as a statutory employer. This allows an injured employee to recover workers' compensation from the company if injured, just as if the work had not been farmed out to an independent contractor (emphasis added). *Huff v. Union Elec. Co.*, 598 S.W.2d 503, 511 (Mo. App. 1980). The party asserting the existence of statutory employee status bears the burden of proving that the injured person was a statutory employee of the purported statutory employer. *Martinez v. Nationwide Paper*, 211 S.W.3d 111, 115 (Mo. App. 2006). One is a statutory employee if (1) the work is performed pursuant to a contract, (2) the injury occurs on or about the premises of the alleged statutory employer and (3) the work is in the usual course of the alleged statutory employer's business. *Bass*, 911 S.W.2d at 619.

The Commission has previously held that a determination of statutory employment is not predicated on a minimum number of employees, and that an employee's status as an independent contractor does not preclude finding of a statutory employer/employee relationship.

The following evidence in this case demonstrates proof of all three elements of above-cited statutory employment test:

Work Performed Pursuant to a Contract

At the time of his work injury, the employee had been in the regular employment of employer Ginger C working as a laborer, providing light construction to heavier construction work relative to development of employer's rental properties. In performing work for Ginger C, employee earned an hourly wage for work actually performed, initially 12.00 per hour and later increased to 15.00 per hour. Ginger C's owner testified that he entered into an agreement with employee to perform work, including the concrete work performed at employer's Hinkson property, in response to employee's oral bid. Mr. Asmar did not contest that the employee performed work for his company, Ginger C, pursuant to an oral contract.

4 See *Vitaliano Rodas v. The Carter Group, Inc.*, Villa Bella, LLC and *Aandrea Carter, Injury No. 15-078084* (LIRC, April 12, 2018), now pending before the Western District Court of Appeals. See *Villa Bella LLC, Apel. v. Vitaliano Rodas, Res. WD81771* (filed May 10, 2018).

Injury No.: 13-104894

Employee: Rommae Hayes

- 4 -

Injury Sustained On or About Employer's Premises

The parties further stipulated that the employee's June 26, 2013, injury occurred when he was pouring a concrete floor in the basement of one of employer's rental properties, known as the Hinkson property. The property's dilapidated condition required complete remodeling including removal of its old concrete floor and replacement with a new concrete floor. Employer's owner, Nakhle Asmar, hired employee to perform this work for a wage of $12.00/hour. Employer does not dispute that the employee's injury occurred on employer's premises.

Work in the Usual Course of the Alleged Statutory Employer's Business

In describing employer's business activity, Asmar explained that Ginger C bought dilapidated housing, then fixed the properties up to rent, and, at times, to sell for profit. Ginger C owned over fifty properties many of which had multiple units, multiple renters and apartment buildings. Many of the improvements relating to the dilapidated properties purchased by Ginger C included installation of new siding, floors, roofing, and interior modeling. Fixing, repairing and remodeling activity are essential functions of buying dilapidated properties regardless of whether the intended purpose is to rent or sell for profit. The work employee was performing at the time of his injury was clearly within the usual course of employer's business.

The facts and evidence in this case, independent of employee's testimony, support the existence of a statutory employment relationship between employee and employer Ginger C. Pursuant to the provisions of § 287.040.1, the accident and injuries employee sustained while working for employer on June 26, 2013, should therefore be found compensable.

Because the majority finds otherwise, I respectfully dissent.

Curtis E. Chick, Jr., Member

AWARD

Employee: Rommae Hayes

Injury No.: 13-104894

Dependents: None

Before the

Alleged Employer: Ginger C, LLC

Division of Workers' Compensation

Department of Labor and Industrial

Relationships of Missouri

Department of Missouri

Industriat

Industry City, Missouri

Industriat Party: Second Injury Fund (SIF)

Insurer: None

Hearing Date: August 29, 2017 and September 6, 2017

Checked by: KMH

FINDINGS OF FACT AND RULINGS OF LAW

  1. Are any benefits awarded herein? No
  2. Was th

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