Opinion ID: 2678483
Heading Depth: 2
Heading Rank: 1

Heading: Affinity’s Hiring of Ruiz

Text: Fernando Ruiz previously worked as a driver for Penske Logistics Corporation, a furniture delivery company that had a contract with Sears. His job status was that of an “employee.” When Sears terminated its contract with Penske in November 2003, Sears advised the drivers that Affinity Logistics Corporation (“Affinity”), a company providing home delivery services for various home furnishing retailers,1 would take over Penske’s contract. Sears advised Ruiz and other drivers employed by Penske to speak with Danny Hansen, an Affinity manager, about working for Affinity. Hansen told Ruiz and the other drivers that if they wished to be hired by Affinity, they had to become independent contractors. Specifically, Hansen told the drivers they needed a fictitious business name, a business license, and a commercial checking account. Affinity then advised the drivers on how to complete the necessary forms. Affinity went so far as to complete the forms for Ruiz, leaving only the spaces for his signature blank. With Affinity’s help, Ruiz formed R&S Logistics (“R&S”). Ruiz obtained a Federal 1 Affinity describes itself as an “experienced and competent home delivery contractor [that] desires to perform home delivery services.” RUIZ V. AFFINITY LOGISTICS 5 Employer Identification Number and a separate business banking account for R&S. Additionally, to work for Affinity, each driver was required to sign an Independent Truckman’s Agreement (“ITA”) and Equipment Lease Agreement (“ELA”). The ITA and the ELA included clauses stating that the parties were entering into an independent contractor relationship. The ITA and ELA stated: Control and Exclusive Use. . . . The parties intend to create an independent contractor relationship and not an employer-employee relationship. Independent Contractor (a) Contractor,2 in the performance of this Agreement, will be acting in his own separate capacity and not as an agent, employee, partner, joint venture or associate of Affinity. It is expressly understood and agreed that Contractor is an independent contractor of Affinity in all manners and respects and that Contractor is not authorized to bind Affinity to any liability or obligation or to represent that it has any authority. . . . The ITA was a one-year contract that automatically renewed from year to year. The contract could be terminated at any time by either party without cause upon giving the other party sixty days notice, or with cause upon breach of contract. The 2 The ITA and ELA repeatedly referred to the drivers as “Contractors.” 6 RUIZ V. AFFINITY LOGISTICS ITA set out the drivers’ rate of pay, which, regardless of experience, was a flat “per stop” rate of $23.00 in 2004. The ITA also included a provision that a driver “at [Affinity’s] option, may be transferred to another location then being served by [Affinity],” and a driver’s failure to comply with a transfer would be a breach of the ITA. After Ruiz and the other drivers signed the ITA and ELA, the drivers received an Affinity Contractor Procedures Manual (“Procedures Manual”). The Procedures Manual, prepared by Affinity, outlined procedures drivers were required to follow regarding loading trucks, delivering goods, installing goods, interacting with customers, reporting to Affinity after deliveries, and addressing returns and refused merchandise, damaged goods, and checking in with Affinity after deliveries. The Procedures Manual included mandatory language such as “must,” “will report,” “must contact,” “required,” “not acceptable,” “100 percent adherence,” and “exactly as specified.” Affinity hired Ruiz as a driver in 2003. Ruiz worked for Affinity from November 2003 to October 2004. Ruiz and the other drivers were responsible for loading furniture and appliance deliveries, unloading the deliveries, and installing the deliveries. Affinity did not require that drivers obtain special licenses. Nor did Affinity require that drivers have any specific work experience or training; rather, drivers simply had to have a driver’s license, sign the ITA and ELA, and pass a drug test and physical exam.