SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2832-99T2
RICHARD AULETTA,
Petitioner/Appellant,
v.
BERGEN CENTER FOR CHILD DEVELOPMENT,
Respondent/Respondent.
Argued: February 15, 2001 - Decided: March 30, 2001
Before Judges BaimeSee footnote 11, Wallace, Jr. and Carchman.
On appeal from the New Jersey Division of
Workers' Compensation, CP 98-39915.
Robert S. Sirota, argues the cause for
appellant (Goldstein, Ballen, O'Rourke &
Wildstein, attorneys; Mr. Sirota on the brief).
Gregory G. Gleason argued the cause for
respondent (Passman Dougherty & Zirulnik,
attorneys; Mr. Gleason, on the brief).
The opinion of the court was delivered by
WALLACE, JR., J.A.D.
This is a workers' compensation appeal. Petitioner Richard
Auletta appeals from an order for judgment in favor of respondent
Bergen Center for Child Development. The judge of compensation
concluded that petitioner was an independent contractor and not an
employee of respondent. On appeal petitioner contends he should be
considered an employee under either the right to control test or
the relative nature of the work test, and that his injury arose out
of and was in the course of the employment. We agree and reverse.
The evidence showed that respondent was a school for special
education students. Petitioner was employed by respondent as a
school psychologist for seven years. He worked two days a week,
Tuesdays and Thursdays, and was paid $65.00 an hour. Petitioner
worked the regular school hours, 8:30 a.m. to 2:30 p.m. He worked
the same days and hours the entire seven years he was employed by
respondent. At the end of each month he would submit a bill to
respondent for the time that he worked the prior month. Respondent
issued a 1099 federal tax form to petitioner for each of the seven
years he was employed at the school. Petitioner also worked as a
school psychologist one day a week at the French Town Board of
Education and maintained a private practice where he worked three
or four days a week. Petitioner was not under contract at the
school.
At trial, petitioner testified that his primary
responsibilities at the school were to conduct individual and group
psychotherapy. However, he also attended field trips, cooked, set
up chairs, and participated in games at the school. Although these
latter activities were not included in petitioner's job
description, he believed the activities were implied and expected
of him.
At the beginning of the school year, Lefebvre, the school's
director, would give petitioner a list of students that he was
expected to work with during the school year. Each morning,
Lefebvre would orally communicate to petitioner whether there were
any students in crisis and direct petitioner to address those
students' concerns. Petitioner stated:
the director gives the directives. She tells
me how she wants a child to be treated. She
tells me about any decisions that have been
made since I was there last. She tells me who
to call, what was decided, and what to carry
out. . . . I learned from the beginning that
if you wanted to work in this facility, that's
the way the rules were.
Lefebvre testified she was a hands on director who was at the
school everyday and strived to be knowledgeable about the school's
daily events. She agreed that she directed petitioner to see
specific students who were in crisis since the last time plaintiff
was at the school, but that she would not direct the treatment
plan. Lefebvre acknowledged there was a great deal of verbal
communication with petitioner regarding the well being of the
students.
Lefebvre agreed with petitioner that respondent supplied all
materials used by petitioner at the school. These materials
included various psychological tests, clerical supplies, pads of
paper, pens, toys, and therapeutic games. However, it was up to
petitioner to determine what particular test should be used for a
specific student.
I.
Initially, we note that the Workers' Compensation Act is
remedial social legislation and should be given a liberal
construction in order "to implement the legislative policy of
affording coverage to as many workers as possible." Brower v. ICT
Group
164 N.J. 367, 373 (2000); Torres v. Trenton Times Newspaper,
64 N.J. 458, 461 (1974). Moreover, we recognize that appellate
courts will not disturb a finding which "could reasonably have been
reached on sufficient credible evidence present in the record"
considering the proofs as a whole. State v. Locurto,
157 N.J. 463,
471 (1999)(quoting State v. Johnson,
42 N.J. 146, 162 (1964)).
Also, "due regard [should be given] to the agency's expertise where
such expertise is a pertinent factor." Close v. Kordulak Brothers,
44 N.J. 589, 599 (1965). Although our scope of review of an agency
decision is limited, we owe no special deference to an agency's
interpretation of the law or legal consequences flowing from
established facts. Cannuscio v. Claridge Hotel and Casino, 319
N.J. Super. 342, 347 (App. Div. 1999).
With these principles in mind, we address petitioner's
contention that he was an employee of respondent and not an
independent contractor.
Under the Workers' Compensation Act, the term employee is
synonymous with servant, and includes all natural persons . . .
who perform services for an employer for financial consideration,
exclusive of . . . casual employment.
N.J.S.A. 34:15-36. Our
courts interpret employee broadly and include relationships not
ordinarily considered to constitute employment. Hannigan v.
Goldfarb,
53 N.J. Super. 190, 195 (App. Div. 1958). However, the
Act does not include independent contractors. Independent
contractors are defined as:
one who, carrying on an independent business,
contracts to do a piece of work according to
his own methods, and without being subject to
the control of his employer as to the means by
which the result is accomplished, but only as
to the result of work.
[Lesniewski v. W.B. Furze Corp.,
308 N.J.
Super. 270, 280 (App. Div. 1998)(quoting
Cappadonna v. Passaic Motors, Inc.,
137 N.J.L. 661 (E. & A. 1948))].
Two tests have developed to determine whether a person is an
employee or an independent contractor: (1) the right to control
test and (2) the relative nature of the work test. Pollack v.
Pino's Formal Wear & Tailoring,
253 N.J. Super. 397, 407 certif.
denied,
130 N.J. 6 (1992). These tests have developed to assist in
drawing a line "between those occupations which are properly
characterized as separate enterprises and those which are in fact
an integral part of the employer's regular business. Ibid. In
recent years [t]he courts have placed a greater reliance upon the
relative nature of the work test," than upon the control test.
Ibid. See Conley v. Oliver and Co.,
317 N.J. Super. 250, 254 (App.
Div. 1998).
"Under the control test the actual exercise of control is not
as determinative as the right of control itself . . . because, in
many instances, the expertise of an employee precludes an employer
from giving him any effective direction concerning the method he
selects in carrying out his duties." Smith v. E.T.L. Enterprises,
155 N.J. Super. 343, 350 (App. Div. 1978); Conley, supra, 317 N.J.
Super. at 255. The determination depends upon whether the employer
had the right to direct the manner in which the business or work
shall be done, as well as the results accomplished. Kertesz v.
Korsh,
296 N.J. Super. 146, 152-53 (App. Div. 1996).
Judge Conford in his dissenting opinion in Marcus v. Eastern
Agric. Ass'n, Inc.
58 N.J. Super. 584, 597 (App. Div. 1959), which
the Supreme Court adopted in
32 N.J. 460 (1960), noted:
[T]he requirement of control is sufficiently
met where its extent is commensurate with that
degree of supervision which is necessary and
appropriate, considering the type of work to
be done and the capabilities of the particular
person dong it. Patently, where the type of
work requires little supervision over details
for its proper prosecution and the person
performing it is so experienced that
instructions concerning such details would be
superfluous, a degree of supervision no
greater than that which is held to be normally
consistent with an independent contractor
status might be equally consistent with an
employment relationship.
[Ibid.]
"Where the control test is not accepted as the dispositive
factor, the focus then turns to the relative nature of the work
test in deciding whether plaintiff is an employee or independent
contractor." Kertesz, supra, 296 N.J. Super. at 154. Under the
relative nature of the work test a court must determine (1)
whether the work performed by petitioner was an integral part of
the regular business of defendant; and (2) whether petitioner
demonstrated substantial economic dependence upon the employer.
Sloan v. Luyando,
305 N.J. Super. 140, 148 (App. Div. 1997) (citing
Caicco v. Toto Brothers, Inc.,
62 N.J. 305, 310 (1973)). If this
type of relationship existed then petitioner established he was an
employee.
Here, it is a difficult decision to determine whether
plaintiff meets the control test. There is undisputed testimony
that Lefebvre met with petitioner each work day and directed
petitioner to address any emergent matters prior to his normal
therapy sessions. Moreover, all of the therapeutic psychological
games and the test materials used by petitioner were supplied by
respondent. Nevertheless, the judge disbelieved petitioner's
contention that Lefebvre also controlled some of the content of his
work.
We need not decide this issue because we are convinced
petitioner satisfied the relative nature of the work test. As
noted above, respondent was a nonprofit school serving children
with special needs. When a child came to the school, he or she
previously had an Individualized Educational Plan (IEP) developed
by a Child Study team. This team generally consists of a school
psychologists, a social worker, and a learning teacher consultant.
Petitioner would counsel the student during the year to help
achieve a better learning environment for the student. If the
student's IEP came up for review, petitioner might be asked to
provide a recommendation for the student to continue under the
present IEP or to amend the IEP. In addition to counseling the
student petitioner regularly participated in other activities
including tournament day games. For the seven years he worked for
respondent, petitioner participated in the tournament day games.
He believed that his participation enhanced his ability to counsel
the students. While petitioner and other staff may not have been
directed to participate in the activities, Lefebvre clearly did not
instruct petitioner and other staff not to participate.
In our view, petitioner's work was clearly an integral part of
respondent's regular business. He was one of two psychologists at
the school, helping to provide a psychologist's presence four out
of five days. The work of the psychologists assisted in the review
and/or revision of the IEP of most students. Moreover, petitioner
received approximately 30% of his income from respondent, which is
sufficient to demonstrate an economic dependence through his
employment with respondent. See Kertesz, supra, 296 N.J. Super. at
156 (finding that petitioner was dependent on defendant for money,
even though he only worked as a sheet rocker for respondent three
days a month); Conley, supra, 317 N.J. Super. at 254 (finding that
petitioner who was a temporary claims adjuster who worked for
respondent in the same manner as other claims adjuster had a
substantial economic dependence on respondent since he worked
exclusively for respondent for months at a time, but not the entire
year). We conclude that petitioner satisfied the relative nature
of the work test.