Don't HR Alone #38 - Independent Contractors VS Employees, Hawaii Income Tax Update

NLRB rules lacrosse officials were employees of interscholastic athletic association, not independent contractors — FEDERAL NEWS

Lacrosse officials were employees of the Pennsylvania Interscholastic Athletic Association, Inc. or PIAA, ruled a divided three-member panel of the NLRB, in a 2-1 decision. The Board found that PIAA controlled the manner of work performed by officials; that the officials performed their work in the name of PIAA, and PIAA had wide-ranging rules governing officials’ conduct and evaluated their adherence to its policies. PIAA also set game schedules, thereby providing the place and time of work. Moreover, PIAA’s control over the officials’ compensation system outweighed considerations supporting independent contractor status, so that the method of payment factor also favored employee status. Thus, finding that the PIAA’s business was providing a system of fair play, and the officials were an integral part of that business, the Board concluded that the officials were employees. Chairman Miscimarra filed a separate dissenting opinion (Pennsylvania Interscholastic Athletic Association, Inc., July 11, 2017).

An NLRB regional director found that lacrosse officials were employees covered under Section 2(3) of the NLRA. Thereafter, the employer, the Pennsylvania Interscholastic Athletic Association, Inc. or PIAA, filed a timely request for review contending that the officials were independent contractors, excluded from coverage. The NLRB granted the request for review with respect to the independent contractor issue.