Opinion ID: 2982813
Heading Depth: 4
Heading Rank: 3

Heading: Keller’s Investment

Text: The next factor we weigh is whether the worker has made a significant capital investment. We have stated that “[t]he capital investment factor is most significant if it reveals that the worker performs a specialized service that requires a tool or application which he has mastered or that the worker is simply using implements of the [company] to accomplish the task.”5 Brandel, 736 F.2d at 1119. Keller argues that we should consider his investment in comparison with Miri’s investment. Other courts have compared the “worker’s individual investment to the employer’s investment in the overall operation.” Baker, 137 F.3d at 1442 (citing Lauritzen, 835 F.2d at 1537); see also Hopkins v. Cornerstone Am., 545 F.3d 338, 344 (5th Cir. 2008) (“In applying the relative-investment factor, we compare each worker’s individual investment to that of the alleged employer.”); Dole v. Snell, 875 F.2d 802, 810 (10th Cir. 1989) (“[T]he ‘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 [cake] decorators in their own tools compared with the investment of the [defendants] simply does not qualify as an investment in this business.”); Doe v. Cin-Lan, Inc., No. 08-CV-12719, 2008 WL 4960170, at –14 (E.D. Mich. Nov. 20, 2008) (“As a result, this Court . . . concludes that whatever the precise size of Doe’s financial investment in her work may have been, it was minor enough in comparison with the overall costs of her business to suggest that she was an FLSA employee, and not an independent contractor.”). We agree that courts must compare the worker’s investment in the equipment to perform his job with the company’s total investment, including office rental space, advertising, software, phone systems, or insurance. Hopkins, 545 F.3d at 344. There is one additional wrinkle, however. When considering the worker’s capital investment in the equipment needed to perform his job, we must consider those investments in light of the broader question: whether that capital investment is evidence of economic independence. Accordingly, there are inherently some capital investments that do not necessarily evidence economic independence. For example, “investment of a vehicle is no small matter, [but] that investment is somewhat diluted when one considers that the vehicle is also used 5 The Brandel court concluded that this factor was not important to determine whether pickle pickers were employees under the FLSA because of the particular system of harvest the defendant used. 736 F.2d at 1119. No. 14-1430 Keller v. Miri Microsystems Page 11 by most drivers for personal purposes.” Herman v. Express Sixty-Minutes Delivery Serv., Inc., 161 F.3d 299, 304 (5th Cir. 1998). On the other hand, investment in something like welding equipment signals a greater degree of economic independence because it is not a common item that most people use daily. See id.; see also Scantland, 721 F.3d at 1317-18 (“[I]n light of the fact that most technicians will already own a vehicle suitable for the work and that many technicians purchased specialty tools from Knight directly via payroll withholdings, there seems to be little need for significant independent capital and very little difference from an employee's wages being increased in order to pay for tools and equipment.”). The same logic also applies to computer equipment and basic hand tools—tools many people have for personal use. With those guiding principles in mind, we turn to the evidence in this record, considering the evidence in the light most favorable to Keller. The undisputed facts demonstrate that Keller made some capital investment in his work. Keller drove to and from installation jobs in his wife’s van for which he held auto insurance.6 For the most part, technicians paid for gas. Twice, HughesNet provided a gas stipend of five dollars when gas prices were very high, which Miri passed along to technicians. Keller primarily used tools that he owned before he began working for Miri, such as drills and wrenches. He also used a few electronic devices to help collect payment and submit workorders to Miri: an application for his smartphone to charge credit cards, a printer, and a digital camera. He did not rent office space. Installation requires a dish, cable, transmitter, modem, some hardware, and materials for pole mounts. Keller provided some of these materials, but Miri did, too. Technicians are responsible for providing up to 125 feet of cable, which cost approximately eight cents per foot, to the customer at no cost. Keller purchased coaxial cable from Miri, which Miri deducted from his paycheck. In addition, technicians must provide F-adaptors, ground clamps, zip ties, and dielectric grease or electrical tape to ground and seal the wires. The record does not provide evidence about the cost of those materials, but Miri testified that the cost varies depending on the quality of the products the technician uses, and technicians are free to use cheaper materials provided they meet HughesNet’s specifications. Miri provided technicians with the dishes, transmitters, and modems, and reimbursed technicians for the cost of cement. We note, 6 Miri required that Keller’s policy list Miri as an additionally insured party. No. 14-1430 Keller v. Miri Microsystems Page 12 however, that a reasonable factfinder might find that dishes, transmitters, and modems are products that the customers purchased from Miri. Miri made significant capital investments in its business. The company rents office space, which is open to the public six days a week. Moreover, Miri uses phones and computers to schedule installation appointments. Thus, the record supports a finding that Keller and Miri invested capital in the equipment, tools, and facilities necessary for the satellite-dish-installation business. To the extent the record establishes that Keller made significant capital investments in the equipment he used on the job, it does so “weakly.” Scantland, 721 F.3d at 1317. Nearly all of the equipment Keller used is common in many households, and Keller used it for both personal and professional tasks. Because this question arises in the context of a motion for summary judgment, we believe the trier of fact should decide how Keller’s capital investments compared to Miri’s, and whether Keller’s capital investments demonstrate that Keller was economically independent.7