Document: 332 U.S. 126 67 S.Ct. 1547 91 L.Ed. 1947 BARTELS et al.v.BIRMINGHAM al. GEER v. BIRMINGHAM. Nos. 731 and 732. Argued April 3, 1947. Decided June 23, Messrs. Thomas B. Roberts Clyde Charlton, both of Des Moines, Iowa, for petitioners. Mr. Robert L. Stern, Washington, D.C., respondent Birmingham Collectors. A. Wilson, respondents Williams Justice REED delivered the opinion Court. 1 Petitioners, operators public dance halls, brought these actions, which were consolidated trial, against Collector Internal Revenue to recover taxes paid under Social Security Act, Titles VIII IX, 42 U.S.C.A. §§ 1001 seq., 1101 I.R.C., c. 9, subchaps. A C, 26 Int.Rev.Code, 1400 1600 seq. Recovery depends on whether petitioners' arrangements bands play at halls made band leaders other members employees petitioners or whether, despite arrangements, independent contractors therefore themselves employers members. Several allowed intervene in Bartels case as defendants protect their own interests. After a recovery District Court, 59 F.Supp. 84, was reversed by Circuit Court Appeals, Bartels, 8 Cir., 157 F.2d 295, they sought certiorari we granted because importance issue administration Act. 329 711, 494. See United States Silk Harrison Greyvan Lines, 331 704, 1463. 2 These cases are not concerned with musicians hired regularly but 'name bands' limited engagements establishments. built around leader whose name, distinctive style presentation rendition music, is intended give each marked individuality. The contracts different ballroom establishments contract price. Almost all here involved one-night stands, some few being several successive nights. trial court found, there no real dispute, that exercises complete control over orchestra. He fixes salaries musicians, pays them, tells them what how play. provides sheet music address system, uniforms. employs discharges he agents' commissions, transportation expenses out sum received from hall operators. Any excess his profit any deficit personal loss. furnish piano instruments. 3 American Federation Musicians, members, adopted standard known 'Form B.' terms this create difficulties determination case. As compensation bands, call guaranteed sum, privilege take percentage gross. Other fixed only, others gross, exceed sum. states operator employer leader, 'shall have services will render specifications ofthis contr act.' form paragraph, so far pertinent, set margin.1 found Union order shift incidence social security operator, it had practical effect relations between operator. held question employment Act one fact, only factor be considered. Since believed entered into 'by fair negotiation' its purpose employers, concluded an contractor employing musicians. 4 Appeals thought otherwise. It test common law control, i.e., if 'right' direct should done done. parties gave actually exercised. While majority such binding Government, would liability Bureau chose accept arrangement valid. supra, page 300. 5 Government relies entirely contract, conceding otherwise bandleaders On hand, contend also though inconclusive, They rely upon dependence orchestra judged light purposes 6 In Silk, relationship employer-employee, determines determined solely idea alleged may could exercise details service rendered business worker workers. Obviously characteristically associated employer-employee application legislation those who matter economic reality dependent service. pointed permanency relation, skill required, investment facilities work opportunities loss activities factors enter judcial deter mination coverage total stiuation controls. standards important entertainment field just said, distribution transportation. 7 Consideration regulations Treasury Federal Agency, quoted note 8, necessary here. chap. 1429, 1609, 1609. Under regulations, successfully resisted effort 'name' band, like involved, wages organization. States, 129. B' did contain corresponding clause. Two years later, Commissioner issued mimeographs 5638, 1944—5—11651, 5767, 1944—22 11889, C.B. 1944, pp. 547—48. directed status variety entertainers appearing theatres, night clubs, restaurants similar Collectors therein advised amusement places liable absence is, reality, clause B,' entertainers, 'with short-term number operators' places, considered 'independent contractors.' argument support administrative interpretation voluntary contractual tax burden operators.2 Cases cited position.3 All cases, however, involve problem corporate association entity. pertinent taxpayer another wholly distinct disconnected corporation individual. We do think authorizes collect covered taxing statute. interpretive rulings Regulations, referred paragraph force Decisions.4 action goes beyond routine exceeds statutory power Commissioner. Board Nierotko, 327 358, 369, 370, 66 637, 643, 90 718, 162 A.L.R. 1445. This brings us then band' circumstances heretofore detailed leader. If employer, employee. 9 elements mark cases. organizes trains th e band. selects musical showmanship success failure him permanent; transient. Maintenance costs charge price performance. bears gains after payment members' expenses. 10 judgments affirmed. 11 Reversed. 12 DOUGLAS, whom BLACK MURPHY concur, dissenting. 13 points out, Form B present adopted, approval Revenue, been earlier face proprietor even traditional concepts master servant. For has conventional earmarks entrepreneur ownership, profit, loss, control—if provisions alone Then requirements Acts satisfied. And hold contemplated scheme. 14 I collector entitled private face. situations escape consequences makes grounds fictional. 'sustain disregard fiction best serves statute.' Higgins Smith, 308 473, 477, 60 355, 84 406. That rule restricted use taxpayers related devices obtain advantages. applied Gray Powell, 314 402, 62 326, 86 301, where railroad exemption Bituminous Coal 15 § 828 contending operations appeared fact operations. rejecting contention said 'The choice disregarding deliberately chosen conducting affairs does lie creator plan.' Id., 414, 334, 301. see reason creating exception chooses face, barred showing conceals arrangement. Tax easily embarrassed. 'Witnesseth, employees, severally, through representative, agree collectively leadership Griff Williams, according following conditions: shall times conplete contract. behalf Leader distribute amount including himself, indicated opposite side place thereof separate memorandum supplied before commencement hereunder turn receipts therefor employee, himself. includes cost transportation, reported employer. hereby replace employee illness, absence, perform provided * *' There coerced secure arrangements. find pass contention. Edwards Chile Copper Co., 270 452, 456, 46 345, 346, 70 678; Burnet Commonwealth Improvement 287 415, 53 198, 77 399; New Colonial Ice Co. Helvering, 292 435, 54 788, 78 1348; Helvering Coleman-Gilbert Associates, 296 374, 56 285, 287, 80 278; 357, 406; 301; Moline Properties, Inc., Commissioner, 319 436, 439, 63 1132, 1134, 87 1499; Interstate Transit Lines 590, 1279, 1607; Schenley Distillers Corp. 326 432, 437, 247, 249, 181. Cum. Bull. (1944), notice, p. I.

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