Summary
The Vermont Supreme Court reviewed an Employment Security Board decision assessing Great Northern Construction, Inc. for unpaid unemployment insurance taxes based on its classification of Ray O’Connor and David LaPointe as independent contractors. The court held that O’Connor satisfied Vermont’s ABC test and that Great Northern was not liable for taxes attributable to him, while affirming the Board’s determination that LaPointe was an employee. The court declined to decide whether a single-member LLC qualifies as an “individual” under the unemployment compensation statute.
Holdings
- O'Connor satisfied all three parts of Vermont's ABC test and was an independent contractor rather than an employee for unemployment insurance tax purposes.
- O'Connor satisfied part A because he was free from Great Northern's control or direction over the means and methods of his work.
- O'Connor satisfied part B because his specialized historic-restoration services were outside the usual course of Great Northern's general contracting business.
- LaPointe failed part C because Great Northern did not establish that he was independently established in the same or similar business.
- The Court did not reach the statutory question whether a single-member LLC qualifies as an "individual" performing services for wages.
Questions Presented
- Whether O'Connor and LaPointe were employees or independent contractors under Vermont's statutory ABC test for unemployment compensation purposes.
- Whether O'Connor satisfied part A of the ABC test by being free from Great Northern's control or direction.
- Whether O'Connor's specialized restoration services were outside the usual course of Great Northern's general contracting business under part B.
- Whether LaPointe was independently established in the same or similar business under part C.
- Whether the Court needed to decide whether a single-member LLC qualifies as an "individual" under Vermont's unemployment compensation statute.
Disposition
reversed_and_remanded
Cases Cited (14)
- 863 To Go, Inc. v. Department of Labor, 2014 VT 61, 196 Vt. 551, 99 A.3d 629(followed)
- Fleece on Earth v. Department of Employment & Training, 2007 VT 29, 181 Vt. 458, 923 A.2d 594(followed)
- State v. Stevens, 116 Vt. 394, 77 A.2d 844 (1951)(followed)
- Bluto v. Department of Employment Security, 135 Vt. 205, 373 A.2d 518 (1977)(followed)
- In re Bargain Busters, 130 Vt. 112, 287 A.2d 554 (1972)(distinguished)
- Vermont Institute of Community Involvement v. Department of Employment Security, 140 Vt. 94, 436 A.2d 765 (1981)(followed)
- Burchesky v. Department of Employment Training, 154 Vt. 355, 577 A.2d 672 (1989)(followed)
- Carpet Remnant Warehouse, Inc. v. New Jersey Department of Labor, 593 A.2d 1177 (N.J. 1991)(persuasive)
- Hargrove v. Sleepy's, LLC, 106 A.3d 449 (N.J. 2015)(persuasive)
- Standard Oil of Connecticut, Inc. v. Administrator, Unemployment Compensation Act, 134 A.3d 581 (Conn. 2016)(persuasive)
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Court Document
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