JOYCE GUYE,
Employee,
Plaintiff,
v. N.C. Industrial Commission
I.C. No. 221884
KAT'S CLEANING,
Employer,
Defendant,
and
DEVIPRYA LLC d/b/a HOWARD
JOHNSON'S EXPRESS INN
Employer,
Defendant,
Hedrick & Morton, L.L.P., by P. Scott Hedrick and Stephen E.
Coble, for plaintiff-appellant.
Cranfill, Sumner & Hartzog, L.L.P., by Cameron D. Simmons and
Meredith T. Black, for defendant-appellees.
JACKSON, Judge.
Joyce Guye (plaintiff) appeals from an order of the Full
Commission of the North Carolina Industrial Commission filed 5
October 2005 denying her claim for workers' compensation benefits
against Deviprya LLC d/b/a Howard Johnsons Express Inn of
Wilmington (defendant). For the reasons stated below, we affirm. Defendant entered into a cleaning agreement with Kat's
Cleaning Service (Kat's) on 1 October 2001. Plaintiff, who was
employed by Kat's as a laundress and housekeeper at defendant's
hotel, also served as assistant supervisor to Kat's other cleaning
staff. On or about 23 January 2002, plaintiff was working in the
laundry room when defendant's manager told her the laundering
supplies were running low and asked her to replace them. When she
picked up a thirty-gallon container of washing bleach weighing
approximately fifty to seventy-five pounds, she felt her back
pop. She continued working for a few days, but reported to the
emergency room on or about 26 January 2002 because the pain she was
experiencing continued to worsen. As a result of her injury,
plaintiff was advised to seek back surgery. Kat's was terminated
as defendant's cleaning service in early 2002, at which time
defendant began hiring cleaning personnel directly.
Plaintiff initiated a workers' compensation claim against
defendant and defendant's insurance carrier on 25 March 2002.
Kathryn Brown d/b/a Kat's Cleaning Service was added as a defendant
on 22 May 2002 by order of the Industrial Commission. Because of
an inability to effect service of process on Kathryn Brown
(Brown), who was believed to have relocated to an unknown
location outside of North Carolina, plaintiff's claim against Kat's
was dismissed without prejudice on 6 February 2003. By order filed
5 January 2004, Deputy Commissioner J. Brad Donovan found plaintiff
was defendant's employee and awarded compensation for her
work-related injury. Defendant made timely appeal to the FullCommission. By order filed 5 October 2005, the Full Commission
reversed the opinion and award of the deputy commissioner, finding
that defendant was not plaintiff's employer and was not liable for
her workers' compensation claim. Plaintiff now appeals from the
opinion and award of the Full Commission.
Plaintiff argues that the Full Commission erred in finding she
was not an employee of defendant and thus not entitled to workers'
compensation benefits. She urges us to reverse the Full Commission
and reinstate the order of Deputy Commissioner Donovan. For the
reasons stated below, we affirm the decision of the Full
Commission.
Ordinarily, in reviewing a decision of the Full Commission,
this Court asks only whether there was competent evidence in the
record to support the Commission's findings of fact and whether
those findings, in turn, justify the Commission's conclusions of
law. See Perkins v. U.S. Airways, ___ N.C. App. ___, ___, 628
S.E.2d 402, 406 (2006). However, '[t]o be entitled to maintain a
proceeding for workers' compensation, the claimant must be, in fact
and in law, an employee of the party from whom compensation is
claimed.' Hughart v. Dasco Transp., Inc., 167 N.C. App. 685, 689,
606 S.E.2d 379, 382 (2005) (quoting Youngblood v. N. State Ford
Truck Sales, 321 N.C. 380, 383, 364 S.E.2d 433, 437 (1988)). It is
for this Court to make such determinations.
The question whether an employer-employee
relationship existed is a jurisdictional one,
and the finding of a jurisdictional fact by
the Industrial Commission is not conclusive
upon appeal even though there be evidence in
the record to support such finding. Thus, thereviewing court has the right, and the duty,
to make its own independent findings of such
jurisdictional facts from its consideration of
all the evidence in the record.
Id. (internal citations, alteration, and quotation marks omitted).
We therefore examine the entire record de novo to determine whether
such a relationship existed.
Plaintiff asks this Court to consider her both the employee of
Kat's and the employee of defendant, making both employers equally
liable for her work-related injury. See Collins v. James Paul
Edwards, Inc., 21 N.C. App. 455, 458, 204 S.E.2d 873, 876, cert.
denied, 285 N.C. 589, 206 S.E.2d 862 (1974) (noting that joint
employers may be jointly responsible to pay compensation if the
employee is injured by accident arising out of and in the course of
such employment). Joint employment exists 'when a single
employee, under contract with two employers, and under the
simultaneous control of both, simultaneously performs services for
both employers, and when the service for each employer is the same
as, or is closely related to, that for the other.' Hughart, 167
N.C. App. at 689, 606 S.E.2d at 383 (quoting Henderson v. Manpower
of Guilford County, Inc., 70 N.C. App. 408, 413.14, 319 S.E.2d 690,
693 (1984)). Such relationships frequently are found with
temporary employment services, when employees are assigned to
another's jobsite and the general employer retains little to no
control over the employee's duties while at that site. See, e.g.,
Brown v. Friday Servs., Inc., 119 N.C. App. 753, 460 S.E.2d 356,
disc. rev. denied, 342 N.C. 191, 463 S.E.2d 234 (1995). Indeed, in
the usual application of the joint employer theory, an employer'loans' the services of his employee to another employer for the
completion of a designated job. Pinckney v. United States, 671 F.
Supp. 405, 408 (E.D.N.C. 1987) (emphasis added). Ultimately, the
test for assessing the employer-employee relationship in such
circumstances was enunciated by this Court in Collins v. James Paul
Edwards, Inc.:
When a general employer lends an employee to a
special employer, the special employer becomes
liable for workmen's compensation only if: (a)
the employee has made a contract of hire,
express or implied, with the special employer;
(b) the work being done is essentially that of
the special employer; and (c) the special
employer has the right to control the details
of the work. When all three of the above
conditions are satisfied in relation to both
employers, both employers are liable for
workmen's compensation.
Collins, 21 N.C. App. at 459, 204 S.E.2d at 876 (emphasis added)
(citation and internal quotation marks omitted). As this Court
later noted, [t]he contract requirement is crucial because the
employee loses certain rights along with those gained when striking
up a new employment relation. Anderson v. Demolition Dynamics,
Inc., 136 N.C. App. 603, 607, 525 S.E.2d 471, 473 (2000) (citation
and internal quotation marks omitted).
In applying the joint employment test to this case, it is
clear that plaintiff at no point established an employment
contract, express or implied, with defendant. Much as in Anderson,
no argument has been made and no evidence has been presented that
the injured employee entered into an express employment contract
with the alleged special employer. See id. at 608, 525 S.E.2d at
474. It is undisputed that the only express contract for hire wasbetween defendant and Kat's, the general employer. We therefore
must determine if plaintiff and defendant, the alleged special
employer, made an implied contract for employment.
First, it must be noted that an employment relationship based
on an implied contract may only arise with mutual consent. Indeed,
[t]he consent may be implied from the employee's acceptance of the
special employer's control and direction. But what seems on the
surface to be such acceptance may actually be only a continued
obedience of the general employer's commands. Collins, 21 N.C.
App. at 460, 204 S.E.2d at 877 (citation and internal quotation
marks omitted).
The facts of the present case are echoed in this Court's
opinion in Collins:
It is true that a casual reading of the
findings of fact . . . might leave the
impression that [the employee] was subject to
extensive and detailed supervision and control
by [the alleged special employer]. When these
findings are examined more closely, however, .
. . it is apparent that in actuality the
supervision and control exercised by [the
alleged special employer] over [the employee]
was minimal.
Id. at 461, 204 S.E.2d 877.78. In the case sub judice, plaintiff
testified that if she arrived at the hotel before the owner of
Kat's, she would divide up the work among Kat's other employees,
based on a daily report from hotel management indicating which
rooms needed servicing. Concerning the work itself, plaintiff
testified that the towels had to be folded and placed the Howard
Johnson way and that the ashtrays, Bibles, soap, cups, and coffee
also were to be placed the Howard Johnson way. The laundrymachines and cleaning supplies necessary for completing the work
were provided by defendant. Additionally, plaintiff, along with
the other Kat's employees, was required to wear a uniform and
Howard Johnson name tag, and nowhere on the name tag did the name
Kat's Cleaning appear. Furthermore, plaintiff's son, who also
worked for Kat's at the Howard Johnson, testified that if a job was
not done correctly, defendant's manager would say, It's either
done right or you won't have a job.
Although at first blush, the facts point toward a joint
employment relationship, further inquiry reveals that plaintiff was
the employee of Kat's Cleaning only. Kathryn Brown, on behalf of
Kat's, entered into a contract with defendant on 1 October 2001,
providing that: 1) all rooms were to be cleaned according to Howard
Johnson specifications; 2) rooms not cleaned properly were to be
recleaned at no charge to defendant; 3) all Kat's employees were to
wear Howard Johnson uniforms and name tags; and 4) Kat's was
responsible for obtaining background checks on its employees.
Plaintiff admitted that she was the assistant supervisor of Kat's
and was helping run the business in accordance with the contract
and Kathryn Brown's directions. Cherie Malpass, another Kat's
employee, testified that the name tags were given to Kathryn Brown,
who in turn distributed them to the employees. Malpass also
testified that Brown would tell employees upon being hired what
time to report to work in the mornings. Additionally, Kathryn
Brown, not defendant, ordered the employee uniforms, and as the
Full Commission found, Brown could determine the make-up of theuniforms, such as the colors of the clothes, provided the uniforms
met the minimum standards established by Howard Johnson.
Furthermore, Malpass explained that the beds were to be made a
certain way, which Brown would demonstrate to the employees when
they were hired. Although the manager of the hotel would inspect
some of the rooms to ensure the rooms met Howard Johnson's quality
standards, ultimately it was Kathryn Brown who was responsible,
pursuant to the contract between Kat's and defendant, to inspect
each room on a daily basis. Malpass testified that she was hired
and fired by Brown, and the Commission specifically found that
Kat's hired and fired its own employees. Defendant had no power to
hire or fire employees on behalf of Kat's, and the manager of the
hotel would inform Kathryn Brown of the need for any disciplinary
action, rather than directly disciplining Kat's employees.
In sum, Kat's and not defendant had the power over hiring,
firing, disciplining, directing, inspecting, and training Kat's
employees, including plaintiff. The supervision and control
actually exercised by defendant was minimal, and any acceptance by
plaintiff of supervision and control by defendant was in reality
only a continued obedience of the general employer's commands.
Id. at 460, 204 S.E.2d at 877 (citation and internal quotation
marks omitted).
Based on these facts, we hold no contract of employment
existed between plaintiff and defendant, and absent an employer-
employee relationship, plaintiff is not entitled to receive
workers' compensation benefits from defendant. As we have found noerror in the Full Commission's conclusion that no employment
relationship existed, we decline to address plaintiff's remaining
contentions. Accordingly, the opinion and award of the Full
Commission is affirmed.
Affirmed.
Judges CALABRIA and GEER concur.
Report per Rule 30(e).
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