the oorreotu*aa of our hcM.ding that the iadftldoal 

portorming sirniooa fn the leoaad deprrtmoata MAoh 

are the aubjeot or the ‘foa80’ agroeaertf a8taohad 

are in the, omployaent oft tho Soaaar deportmoat 

atoP..' 

Th0 6efiBstsQR Of Omg2OFBOBf 66 fCUBd in Am010 

5221% rJeotion &7(g), VornQ4a’a AaaOt6tOd civil etatut6a, 

roada: 

sor wauoa or under am ~oonbraot ol’ bin. writton 

#e th%Bk 1% de0 OX%iBm tQ, QRQtr 6 p&iiOB Of 

Artlolr 522lb,~Seotlon X7(0’ ‘g, : 

r) 

. . . . Xaoh inditl4urIl 8EplQJOd to Qirfana 

or Oo~aaaiat USA pasrfor?Ptng *be uor& dt any agonlr 

ar aie~loyoe~~of aa OmQloySng; nnit ahall bo deemed 

to be oaployod br such Oi8QlOyiB$ onit ?or ell the 

parpoaeo oC this Bet, nhothor auo& lodiridoal woo 

hSro4 or mid 4irootly by l uoh eviployling unit or 

tiy au& .egmt or oaploywe, pmwidocl the em~loylsq 

unit tad l otaaZ or oclnatructite kw~~lodge of the 

Work.-, .,:’ 

Tha orhiblta attached tb thia ,mquy%t reilrot omtraata ontored into betmen the X drpartmen%~abOr@, 11 

with an indi~ibuel, pertnsrahlp aad corpcmtioa ror t 

the oi leased. bcpartpaclnta within the lasaor 8t0re. 

The aontrlrots subdtte8 are olzcilar end ptarpcrt 

to oreHis a oontrsot reletionahip betwean the oontraoting 

partioa, spscifioally Blaerawi~g * joint vetituxs or enterprise or a letticg of rpaoe within the B.s)srtmnt stow. 

i -.~-1 ’ I I 
Sonoreblo Cla& A. Willirma, Pago ) 

20 err not oQBOD~6~ wltb the pusp~aa or rea8O of 8he leawr 

In sublotting er in loae%ng tarloua 4iepartwnt8 wlthin lta 

store. But, wi or0 oat104 tipen to aeoulo, nh8thar the fndividuala en(rsed In mploymmtt to .tho rarlwa laue4 dapar$- 

menta am parfoznlng, wrviooa free iron eantrol or binotion 

or the loanor @artaanO atore. 

tar th8 pmpoae 0r thin oplalon %t la woeaarry 

that oartaln %aota, wmoa to the oontraota aubaittod, be 

roTmviBd in dOtOl’RbiiBg tam OOBtWl or right or OQntrQl, hod 

or uorolaed ,by the lunar over thr lndir%dnalr ongag@ tn 

the luwd 4epar8nunta. In the o o ntr a ol t ub a ltto4 k tmo n 

th o X dep a M nt l tojo and Lillian Famll, n noto the follodn$ atlpulatlcna portinont to the UDmiBrtiCB or the ro15tiOBDhiD~ there OXiDtin~. PC~X%Y Qr 8hO mFDt PU8, ShO 

1oaa0r, roao~oa the right to: rfx an4 otioroa all ruler 

and rsgulatlon8 of 8hr opuafion~of the atcm on4 tha laaaad 

departwnt; TV’ oontrol the. l p9mmnaa and the merohmdiae 

ocntain~b in thr lwaad departmsnt; tho right ,to wambo an& 

approve the admrt~alng ot the loaaoe; to ?ir the minlmtm 

amunt Of adtortlain~ 80~0 ~by the. lerwe Wring aaoh part 

to twttlfi NW ComplalnOa or diagutoo arlalng with the OIUI 

tomera ot aaid,’ ~eaa~ ffeportmant an& to n&k0 tiaaoimble adjustment d&h aaoh ou~tcaar~ fiQ nquln the loaaee tQ noeire 

baok any ?norohaadlao-aoid by eald leaaao that ia roturna~ by 

the oaatomar~ to oontzol the per8onnol of the louaH) bj oauaing diaml~aal ot aw,poraen or parsona who are objaotlonable 

to the bmwrc : ‘/,, 

2& ii& o íik i0t0 al api0y m* wri0;Oe prr~ano1 and propar2y aonduot aad oaray an tho buolmaa and to 

engags an6 oon%rol lta l nxpla~ea and a&ante aub$oot to the 

rule6 fin8 nfplstlona oi tJm &rawr; act ‘to wll or allaw 

to bo aold in ita departrsrnt anj morohant3iaa other. than th& 

agreed upon in thrir oontraota~ not to 08rzy any morohaaalee 

tha charaotor oi *blob la not aatlataotor~ to the leaaor; 

no8 to elrgaw In any additional buaiueaa~ other than that enmged in at the tlam of the aigplmg of the lww oontraot 

ulthaut the pomlaalon of the leaaor~ to kwp the a~purenoe 

ot lta atook and departiaent ~atiaraotorJr to tho laaaor; not 

to sell anr nerohrndlw on orsdit except to auah pareone an4 

in suah amounts aa tb lraaor ahall rlret appxwa aooor4t.q 

to the mathode of appmral, ta rogue in that shorn; all aoaounts aooruing on aooount of Dales on oradlt shall be deearad 

to bsoorm snd be tho .aroounta ot tho loilaora not to gernit 

any psrt o? tho apaor~leaaa& ~to rsmaia vaount or unoaoupfad, 
rloaorebl4 mwa4 A, Wllllw, Pa* & 

or intertam iB 4!ly I(lBnSr ~h40000VW with tha ingr.08 ax’ 

egress oi the eaployeoa of theloaaor~ aot to interien 

throu@ the oialea .or o&Wtln@ with thb lnp*aa or egreaa 

or tha employou o? the .laaaor 0~ to.gwmlt auy dlaeowtaay 

to be ahown than& thatla apito c# Oha binding obliga6lonm 

of t&r oontnotqv5 tha S~gaea for II per104 of firs years, 

the lamor mar t6amiJmta fir a&aenoat upoa tea 6ayra notin 

for bmaoh of a4 oi the w OtipulOfdons ~o*ldod in th0 

00n~aOt*~ ~ 

55 

Th4 p h o to a tstioopo y o f ths l gmma nt ea ta nlnt d o 

botwaan X~dr p a r tmmt l tora aad *not&r leaa dloeloaoa oartaih at&m nat*iotioaa plae8d upon tk La8me. Aaollg those 

reatrlotiou8 we find tha lonorm muot maintain enall operate in 

0 ~8nn0r aatiareotory to ia~00r 0 rirot-01800 high-ttrfiae department far tha aala or osrtatn rwMaudlae~ laano a&me8 

that it0 burlnaao rrbdll f0 all OUtWard 8p~alWM~6, tXt@Dt 

em to the areditoro csf the departraant, Ee ooabtiatod l a a dopertmant ot and undqr the trade 55~~ o? the leamar, it bei5g 

uederatoad and 4grnb that. this eondlMoa la ona of tb prinolpla 00501d0mCbu0 or this oontrsot: oaeil C.O.D. or layaWOy Oale i0 t0 b0 Ilppmed bJ th0 4l-OditS deDOl'tseUt Or th0 

lessor la the aam BMUAILW an aredit aalea~ all matter8 of 

dispute ariafng between the lessee 454 soy of it* 04mtowr8 

and with rmpao0 to olebo of aey kind mado by losaeo*a ewtomera, leaaer ahall k the judge and ita 6ealaion &all k 

fin01 and bin4ilrrJ UpOO ];08000; th0 UiV0a Or~tba pmtiO0 t0 

the agresaant aball k entltlad to raoel~a d~ao~ta aabo 

upon tha pnrdla@clr in any af the doputapants but #O WiVOa 

of orr$oera of lessor shall M antitled to &crc\urt in *0- 

oordanoe rlth 1~1880r~8 Jbaotiob, the 20$ dlnoowt ligitotion 

notwltbrtandieg, that ouch aslea to wire8 ot olfiwra of lea110r shall ti rant rrae; loaae* PUIJT employ a cmmpr for It0 

bua$.nncaa at ita.expmae but the 9erOon 6nployed aa muoh 

DIOli@&O~ S&O& b@fOm hi8 @kQi~O~Dt, b@ iir6t aW2W.d by 

ths lasoor. Lasses r&11 also employ at its exponm all 

alter6tiOn help iOr it6 d~&NU'tB%kIb. al OWh pW6OW EhOll 

before ept~loyment ba appr~*sb by &bOOOX’, lea8eo shall not 

oontinue in it0 employmnt any pOra0n lnoluding it0 m0U*&aT 

who ie objeottonable to Zaauorr any auah rRpl0pe,or aunagsr 

who ahell at any tint8 beoae, objootioaable to leeoor k 

Qiaobargad. 

Advartlng to ths ~0rdiq of tha OtOtUta defining 

eaployamnt end ooasidorlng thr reetrfotiono gleoe& in tho 

coatraat between the lsaaor and lessee, it appeamJ obviotla 

to ua that the lessor retninsb ths right to oontrsrsl OF direat the porioraOrm0O of th8 Oor~l000 rondared by tha perOOUB engaged in the departments of the lessees. The atetuto 

.: . / / 
. 

fhao~eble Olauda!A. W.U8m*, Pa&a 5 

rsqulraa tfmt auo~,.lndlvl4ual. aha ba fraa ?rca oontroZ or 

dlraotlon over tha'paHorman# cg t&Lb! morvlaea, to be axoludad from tha dofin%tioa of th& term "am loymant". Thara 

are nray oaaba ia thla atetw holding that, e he right to OOJW 

trol rather than the l xarola~ than& detomln~a whetbar one 

la an anployao or an ir06penbont ocmtraotor. T. & N. 0. 

!bilvay Co. w. Rittlmen, Q 8. 8. (2a) 745. 2) Tes. Jur. 

pg. 546, 4 Tax. Law 88vlew~N?7. 

The iaota mlq&lmi do not dlnalona that the b8ra 

ax~rolard a rtriat~oostrol @VW tho parrorrmnoes ot the l orvIces or the lnditieunla &XI the laaauU i3epartx5ents,~ ‘but ardor 

tha oontraota attach6 Ce~youF request alearly tho rl& oi 

control was ret&ml by tha lausor., To oeaaot riauellao a 

8 mom rigid ouperrlslon en4 conarol ovex ertployoes t&en the 

ri@kt to oauaa term%aotioa ot their aonbma if nob satlrtaatarp to.thu luaaor. ii Tho sale8 mode by the lnai+lduala ln 

tha laaasd department on oredlt or by ohaok mst ?+a ~prwab 

by the 18s~~~~ they faax not be diaaourtaoua to the 3ssaor or 

any of ita otb? pdwntnelt tbo a~p811r62144~ the amtmgemnt, 

the qualLtr an4 the display ot mrohandlao by thwe indlvt, 

duals muat maet with the appro?al of the loasar. 

nrtiola 522kb; Zaotion V(e) qaatod SB pa& profldeo that an indlvLdsal rniling wwain tbo 4utfnltlon Of 

%uploynwLt", alro waked haz?in 18 dee!#d hlrsd by %a enployi~g unit lr ooatrello4 b it rdrotber~ the? wore hitnd oc 

‘paid direotis by sooh e lo 

ployee providing tha amp oWi4 uait:had aotual ox oonotrue- 

"f~ y&q unit or br rush amnt or N 

tivu fmowlsdae of tha nork. Olenrlp the luesor had kaowle@ 

ot t&u work doxm $81 the leaarb deyartxmnt a6 tboy appzomd, 

the jmrsonnel.oi those dapsrtsanta. 

W@ :dd nat think it moieaary to argue at length 

the terms otithe owtrakt:a aubgitto4. %er in our opinion, 

tho rastriotlosa. L~goaad IX on 

olasrly refuto.tha .orrp&aa s 

the paraonaal of t!n l@mOu8 

05 tbbet th;hef afo fme $2~ cmtool or diraotlan;or the laaao& 

HEW himi found a meat reeont ruling of tha Romaa 

of Intarnal ffavei~w upon 6 afuller aituatton, ra@otiad ia tha 

Fnemploywnt Cempaoaatlon interpretation aremlos, -Federal 

c%rlos auppltmant~or Xaroh 15, X941, aa 5Oblr.P.T. 409. This 

iact aituatl&sdlaOlosrd that the J& Comxm~ opsratcld II 1eaOOd : 

depertrmnt ia the ri Deprrtxent Rtoro snga;sging et all tlmaa~at S 

lseat ten persons’in ita departsent. Cenclmllg the u COmpWW 

hired fta o~ltl aalas people snd ~~~~agerlical help and goid their ,‘*,, 
-.A , 

Honoreble Clauda A. Yllllllu, P8g, B 

romuneratlan. Their oohmob also rrqulred that the craaployo.8 

of the % COQlpllBy Wfit OOJliOnl to the tile8 8Bd l%@&btiiXM Of 

the 14 Departwnt 3em. 

2% fBtOrM1 !btenPe Ikpertiwnt than ruled ttmt the 

W Dspartment Store uas the llllployw beoause it wB8 rpprmn8 

from the foot8 and the portlosnt mgutotlons that the 9rimarf 

ri&t of dimOt$OB ItBd OOBtl'Ol 0-r the p*riOmBOe Ot the 

aenioea by the as~plo,ya#r in the leraed departwont was retsimd a nd l xer a irb~y dt& A DOpmrtm@nt 880n. lo l nr o i~- 

ing auoh oontrof, the # Deputwmt 88Om mfi mot l etiBg (I* II 

sgmat of the Y Company bat mr rating on ita khrlf (~a grinoipal . Aooor6ln~y, the w ~partmont mom was th8 l ll$lo~r 

a nd me lia a l$e 0~ th a l ooiel r+ourity end amplo~t terma 

based upon t&e wage8 of the ~omons variotPsixg 88nio48 in 

the lsessd dsprrtasnt at tbo F4 Dapar8went Storm. 

lws mltng oosartird upon the raot that thr saplofle 

wes subjeot totho wUl udt oOntm1 oi the H ~98rtment 80019, 

not only as to u&t should ba done but how it atiould be Bono, 

but that it wsi3 not nuocrmary the8 t&o eno9Zopar aotuttllg dlMot 

the p8rfOXTfl~OO Of the a*TViOeOi i8 i8 WlftiOii?Bt if ths ri&ht 

to oontaol them 1s retained. 

The raots In th* above wntlonrd 8ituatlon are abllar and the ruling is dlmotly In point In the Pitter beiuve 

ue in thu opbion. 

to are not paedag upon the rslstionilh%p of Bha VWties ondsr ~oOnsidW8tiOB 6XOeBt 68 to llrb%llt~ Under'the darinitlon or enrploynsat ia ths Taxmk Vnq19loymaat Gowwwtioza 

ti0t. 

*es, th+0m, rdriie jOa that the 9waonr engaSsd 

in the pertornenoo of renio,a in Obe leaned departxmita or 

the lessor department store LT~J 9erforning senloo8 under the 

dlrrotion'and control of tha fasrror store regardlass of the 

legal ohamoter of the 1Nmea. In our opinion there fa the 

sama Uability for taxes on the Wages Of the 9WWOM W@@d 

by the oorporation es for thO8a 0i a 9aHmWShlp or en fadlvldual. 

Toura very truly 

\ T?.T;,$- G,+pi: li~yy.:;:7-3y :-1 ~ 

-‘-.@A:; 02 ma9 

~xEim9