Opinion ID: 523636
Heading Depth: 2
Heading Rank: 3

Heading: Investment in the Business.

Text: 107 The district court found that the decorators initially invest $400 in equipment and approximately the same sum every year thereafter. Defendants simply provide icing, tables, turntables, mats, and a copy cake machine. Except for the icing, decorators are, therefore, capable of decorating defendants' cakes without these items. R. Vol. I, Tab 2 at 8-9. 108 Courts have generally held that the fact that a worker supplies his or her own tools or equipment does not preclude a finding of employee status. See Rutherford Food Corp. v. McComb, 331 U.S. at 725, 67 S.Ct. at 1474 (meat boners own their own hooks, knives, and leather belts (aprons) and were still found to be employees); McLaughlin v. Seafood, Inc., 861 F.2d at 451 (seafood processors supply their own hairnets, aprons, gloves and seafood knives); Sec'y of Labor v. Lauritzen, 835 F.2d at 1537 (pickle pickers provide their own gloves); Robicheaux v. Radcliff Material, Inc., 697 F.2d at 666 (Although each of the welders had invested his own money in purchasing a welding machine, the district court concluded that a relatively minor portion of the compensation was paid to the employees based upon their furnishing the equipment and that the major part of the compensation was paid for the services of these ... employees.); Real v. Driscoll Strawberry Associates, Inc., 603 F.2d at 752 (migrant farmworkers furnish their own hoes, shovels, pruning clippers and hand carts); Donovan v. Tehco, Inc., 642 F.2d 141, 143 (5th Cir.1981) (worker supplies hand tools); Schultz v. Mistletoe Express Service, Inc., 434 F.2d at 1270-71 (terminal operators furnish local trucks); Silent Woman, Ltd. v. Donovan, 585 F.Supp. at 451 (Seamstresses who work at home and supply their own sewing machines are considered employees. The only 'expenditure' for which the ... seamstresses obtain a return is their own labor.). 109 The fact is that these decorators had no investment at all in the Snell's business, as such. As Novak testified: 110 Q Did you invest or how did you invest in the business of the Snells? 111 A No, I haven't invested in the business. 112 R. Vol. II at 17. The Snells maintained the eight retail outlets and the bakery, including the making of lease payments for the physical facilities. They supply the cakes, the icing, novelty items to be put on the cakes, doilies, boxes and boards, and provide a copy cake machine (to shine pictures on the cakes), food coloring, a set of pictures, turntables, and mats to stand on. R. Vol. II at 18-19, 46. They pay all the advertising and other operating expenses of the business including phone service, utilities, water, counter help, and all other necessary help. As courts have noted, the investment, which must be considered as a factor is the amount of large capital expenditures, such as risk capital and capital investments, not negligible items, or labor itself. The relative investment of the decorators in their own tools compared with the investment of the Snells simply does not qualify as an investment in this business. See Brock v. Mr. W. Fireworks, Inc., 814 F.2d at 1052; Sec'y of Labor v. Lauritzen, 835 F.2d at 1537. And, comparing the decorator's $400.00 annual investment to their annual income suggests no different conclusion. Novak earned approximately $25,000 per year, which was above average, R. Vol. II at 27, but one would hardly refer to such income as the return on an annual investment of $400 in tools or equipment. 113