Opinion ID: 884933
Heading Depth: 1
Heading Rank: 3

Heading: Direct Evidence of Right or Exercise of Control

Text: ¶ 22 Right of control, as we have repeatedly recognized, is the most crucial factor in distinguishing between employees and independent contractors. Standard Chem. Mfg. Co. v. Employment Sec. Div. (1980), 185 Mont. 241, 247, 605 P.2d 610, 613; see also Zimmer-Jackson, 231 Mont. at 362, 752 P.2d at 1098 (labeling right of control the most important factor in determining employment relationships). It is the right, not just the exercise, of control that is of the utmost importance under this factor. Sharp, 178 Mont. at 424, 584 P.2d at 1301. Thus, an individual is an employee of another when that other has the right to control the details, methods, or means of accomplishing the individual's work, and not just the end result of the work. Sharp, 178 Mont. at 424, 584 P.2d at 1301; Walling v. Hardy Constr. (1991), 247 Mont. 441, 447-48, 807 P.2d 1335, 1339; Johnson v. Montana Dept. of Labor and Indus. (1989), 240 Mont. 288, 292-93, 783 P.2d 1355, 1358; St. Regis Paper Co. v. Unemployment Compensation Comm'n (1971), 157 Mont. 548, 552-53, 487 P.2d 524, 526-27. ¶ 23 Regarding direct evidence of right or exercise of control, the Board found in relevant part that: (1) Agrijusters provided specific training to crop adjusters to comply with the requirements and regulations of the FCIC; (2)crop adjusters were required to adjust crop losses according to FCIC procedures and regulations, and were not allowed to use their own discretion to select an alternative method to adjust crop losses; (3) trainee crop adjusters were required to satisfactorily complete both classroom and on-the-job training, often remaining under the direct supervision of experienced adjusters for up to two years before being allowed to crop adjust on their own; and (4) Agrijusters reviewed the completed work of crop adjusters and returned incomplete or erroneous work to adjusters for revision. These findings are supported by substantial evidence in the record and, therefore, are conclusive in nature. Notwithstanding these findings, the District Court reasoned that: (1) Agrijusters did not control the adjuster's day-to-day work activities; (2) Agrijusters return of insufficient or incorrect work indicates that Agrijusters controls only the end result of the adjusters' work; and (3) classroom and on-the-job training and supervision of adjusters to comply with FCIC regulations indicates control by the FCIC, not Agrijusters. ¶ 24 While we acknowledge that there is substantial evidence in support of a conclusion that crop adjusters were not subject to close day-to-day supervision by Agrijusters (for example, adjusters could accept or reject assignments from Agrijusters and were free to choose their hours of work), we agree with the Department that the District Court improperly re-weighed the evidence in concluding that the control factor was not established. As mentioned previously, where the Board's findings are supported by substantial evidence, it is impermissible for a district court to balance conflicting evidence in support of and in opposition to the Board's findings.... Thomas Bros., 276 Mont. at 109, 915 P.2d at 228. This is true even where `there is also substantial evidence or even a preponderance of evidence to the contrary.' Gypsy Highview, 221 Mont. at 15, 716 P.2d at 623 (quoting Jordan, 114 Mont. at 343, 136 P.2d at 528). Even though there is sufficient evidence in the record for reaching opposite conclusions, we conclude that the Board's findings of fact are supported by substantial credible evidence. ¶ 25 In Johnson, a homeowner hired carpenters to complete a remodeling project. During completion of the remodeling project, the homeowner did not correct the carpenters as to the details in the performance of their work, and expected them to utilize their expertise to achieve his desired outcome for the project. Johnson, 240 Mont. at 292, 783 P.2d at 1358. Noting that the homeowner told the carpenters only what he wanted done but not how to do it, this Court concluded that the homeowner merely controlled the result and not the methods ... used to accomplish the end result. Johnson, 240 Mont. at 292-93, 783 P.2d at 1358. ¶ 26 We reach the opposite conclusion here. The findings of the Board demonstrate that Agrijusters, through training, supervision, and review of completed job assignments, substantially controlled how the crop adjusters performed their adjusting work. Thus, we hold that Agrijusters exercised a right of control over the means or methods by which crop adjusters completed their job assignments.