Document: 390 U.S. 254 88 S.Ct. 988 19 L.Ed.2d 1083 NATIONAL LABOR RELATIONS BOARD, Petitioner,v.UNITED INSURANCE COMPANY OF AMERICA et al. WORKERS INTERNATIONAL UNION, AFL—CIO, Petitioner, v. BOARD Nos. 178, 179. Argued Jan. 23 and 24, 1968. Decided March 6, Dominick L. Manoli, Washington, D.C., for National Labor Relations board. Isaac N. Groner, Insurance Workers International Union, AFL—CIO. Bernard G. Segal, Philadelphia, Pa., United Ins. Co. of America. Mr. Justice BLACK delivered the opinion Court. 1 In its insurance operations respondent Company uses 'debit agents' whose primary functions are collecting premiums from policy-holders, preventing lapsing policies, selling such new as time allows. The having won a certification election, seeks to represent debit agents, question before us is whether these agents 'employees' who protected by Act or 'independent contractors' expressly exempted Act.1 Respondent company refused recognize claiming that were independent contractors rather than employees. ensuing unfair labor practice proceeding Board held employees ordered bargain collectively with Union. 154 N.L.R.B. 38. On appeal Court Appeals found enforce Board's order. 371 F.2d 316 (C.A.7th Cir.). importance in context involved administration prompted grant petitions Union certiorari. 389 815, 49, 66. 2 At outset critical issue what standard standards should be applied differentiating 'employee' contractor' those terms used Act. Initially this Hearst Publications, 322 111, 64 851, L.Ed. 1170, 'Whether * term includes (particular) workers must answered primarily history, purposes legislation.' U.S., at 124, 857. Thus was one economic policy considerations within field. Congressional reaction construction adverse Congress passed an amendment specifically excluding 'any individual status definition contained § 2(3) obvious purpose have courts apply general agency principles distinguishing between under Act.2 And both petitioners respondents agree proper here law agency. there no doubt we commonlaw test employee contractor. 3 Since applied, some factual background showing relationship necessary. These basic facts stated will very briefly summarized here. has district offices most States which run manager usually several assistant managers him. Each staff four five total number connected approximately 3,300. New hired managers, after interviews; they need prior experience assigned office supervision manager. Once he hired, agent issued book contains names addresses company's existing policyholders relatively concentrated geographic area. This property returned upon termination agent's service. main job collect listed book. They also try prevent policies sell when compensates agreed 'Agent's Commission Plan' retains 20% his weekly premium collections on industrial 10% holders ordinary life, 50% first year's life sold plan provides bonuses other fringe benefits including vacation-with-pay participation group profit-sharing plan. beginning service accompanies rounds acquaint him customers show approved collection techniques. supplied 'Rate Book,' expected follow, containing detailed instructions how perform many duties. An turn collected once week file report. attends meetings discussion latest sales techniques, directives, etc. Complaints against investigated manager, and, if well founded, talks 'set straight.' Agents poor production records, fail maintain their accounts properly follow rules, 'cautioned.' submits report home office, specifying, among things, records below average; amounts debits; percentages, arrears, production; action taken remedy 'letdown.' If improvement does not asks 'resign,' exercises rights fire them 'at any time.' 4 There innumerable situations arise common where it difficult say particular contractor,3 cases present situation. hand work away fix own hours days; clearly obviously factory. hand, however, do independence, nor allowed initiative decision-making authority, normally associated situation shorthand formula magic phrase can find answer, but all incidents assessed weighed factor being decisive. What important light pertinent common-law principles. When done, decisive factors become following: operate businesses, essential part normal operations; training experience, trained supervisory personnel; business name considerable assistance guidance managerial personnel ordinarily only policies; conditions promulgated changed unilaterally company; account funds elaborate regular reporting procedure; receive vacation pension fund; permanent working arrangement may continue long performance satisfactory. Probably best summation mean reality actual given chairman board letter about arose: 5 'if believes power make rules handling business, then resignation once, learn said going accordance plan, forced final (sic). 6 'The managed your same districts states located. officials I America's over 45 years successfully, successful operation, allow anyone interfere our plan.' 7 examined showed purely finding Board, application facts—what establish agency: contractor? It pointed out determination pure special administrative expertise court possess. judgment made hearing witnesses oral argument had been basis written briefs. Such set aside just because would, original matter, decide case way. As Universal Camera Corp. N.L.R.B., 340 474, 71 456, 95 'Nor (the requirement canvassing whole record) even matters requiring displace choice two fairly conflicting views, though would justifiably different matter de novo.' 488, 465. Here least decision circumstances enforced error refuse so. 8 Reversed. 9 BRENNAN MARSHALL took consideration cases. amended (61 Stat. 136, 73 519, 29 U.S.C. 151 seq.), protects excludes contractor.' (§ 2(3).) See 93 Cong.Rec. 6441—6442, Leg.Hist. Management Act, 1947, p. 1537. H.R.Rep.No. 245, 80th Cong., 1st Sess., 18, Leg.Hist., 309; H.R.Conf.Rep. No. 510, 32—33, pp. 536—537. annotated 55 A.L.R. 289 seq. 61 218

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