Opinion ID: 2982512
Heading Depth: 3
Heading Rank: 1

Heading: ALJ’s Credibility Determination

Text: Absolute argues that the ALJ erred in determining that Koran was an employee of Absolute and not an independent contractor. As a preliminary matter, Absolute contends that the ALJ’s credibility determination was patently unreasonable in crediting the COs’ testimony over Koran’s. In First Nat’l Monetary Corp. v. Weinberger, we held that: [c]redibility determinations . . . are generally not to be set aside unless found to be inherently incredible or patently unreasonable. Appellate courts defer to the finder of fact[] because the factfinder has the opportunity to observe the witnesses’ demeanors. However, a reviewing court does not act, even in credibility matters, as a mere rubber stamp for the administrative action on appeal. A reviewing court must consider evidence which fairly detracts from the weight of the credibility determination, and in a case where one witness’s testimony is flatly contradicted by several others, the court must carefully examine the credibility finding. 819 F.2d 1334, 1339 (6th Cir. 1987) (internal quotation marks and citations omitted). The ALJ properly assessed Koran as not credible by assessing his demeanor and by highlighting the portions of Koran’s interview that contradicted his testimony at the hearing, and we will therefore defer to its adverse credibility determination. There were five key discrepancies between the statements Koran made during the investigation and during his testimony: (1) Koran told the COs that he owned only the tools on his tool belt and that Absolute supplied all of the other equipment, but he later testified that he owned all of the tools on the jobsite. -3- Case No. 13-4364; Absolute Roofing & Constr., Inc. v. Secretary of Labor (2) Koran told the COs that he had been at a different Absolute jobsite the morning before reporting to the church jobsite, but he testified that he had been at the church jobsite all day. (3) Koran told the COs that he was required to report to Absolute’s shop at 7:00 AM and work at least eight hours per day, but he testified that he set his own hours. (4) Koran told the COs that Absolute set his wage and paid him hourly and that he did not have the opportunity to earn any profit on the church job. However, Koran testified that he submitted an invoice to Absolute for his work on the church job and that he charged an hourly rate plus overhead. (5) Koran told the COs that he was an employee of Absolute, that Kamis was his employer, that he was not an independent contractor, and that Kamis controlled the church job. However, Koran testified that he subcontracted from Absolute to do the church job, that he controlled the site and was responsible for the completion of the church project, and that he was also responsible for not having fall protection at the site. These discrepancies, coupled with the fact that “Koran’s substantial and ongoing work relationship with [Absolute] appear[ed] to have influenced his testimony,” led the ALJ to determine Koran’s testimony was not credible. Further, because the COs’ testimony relied on Koran’s interview answers during the OSHA investigation, we reject Absolute’s argument that Koran’s testimony merely contradicts the testimony of the COs, as Koran’s testimony actually contradicts his own prior statements during the investigation.