Document: 397 U.S. 179 90 S.Ct. 850 25 L.Ed.2d 207 UNITED STATES, Petitioner,v.W. M. WEBB, INC., et al. No. 63. Argued Nov. 17, 1969. Decided March 3, 1970. Solicitor General Erwin N. Griswold for petitioner. Joseph J. Lyman, Washington, D.C., repondents. Mr. Justice HARLAN delivered the opinion of Court. 1 The respondents in this case, which was consolidated below, own boats that are used commercial fishing Atlantic Ocean and Gulf Mexico. There is carried out through contractual arrangements, shaped by established custom, with boat captains, who man manage their day-to-day operation. question before Court whether captains crewmen 'employees' within provisions Federal Insurance Contributions Act (FICA)1 Unemployment Tax (FUTA),2 impose taxes on employers to finance government benefits employees. 2 * During taxable periods involved here,3 respondents' vessels were engaged menhaden, a non-edible fish processed various industrial purposes. owner each vessel equipped secured services an experienced fisherman be captain. captain then assembled crew. customarily served same full season, occasionally several consecutive seasons, although oral arrangements between owners permitted either terminate relationship at end any trip. trips lasted from one days. 3 operated docking facilities owned fish-processing plants, discharged catch these plants upon completion paid according volume catch, crews basis, following terms had been negotiated advance. Neither nor guaranteed earnings if they failed fish. While determined plant would report generally where when take place, managed details operation manner fishing. 4 Respondents filed tax returns as under FICA FUTA, employer's share due crews. After making appropriate claims refunds, sued refunds District Eastern Louisiana. Court, sitting without jury, after trial not employees purposes statutes. court noted both FUTA define 'employee' individual has employee status 'the usual common law rules' applicable determination master-servant relationship. It found 'without merit' Government's contention 'that common-law governing taxpayer fishermen pursuing ventures Mexico general maritime law.' 271 F.Supp. 249, 257 (1967). further degree control exercised over activities sufficient, standards land-based occupations, create employer thus held entitled refunds. 5 On appeal, Appeals Fifth Circuit affirmed. reviewed facts observed 'it clear agent crew hands employees,' '(i)f we free apply test employer-employee relationship, reverse decision district court.' 402 F.2d 956, 959 (1968).4 However, agreed statutes' prescription 'common barred application standards. 6 This conclusion conflicts approach Claims Cape Shore Fish Co. v. United States, 330 961, 165 Ct.Cl. 630 (1964). In scallop fishermen, operating similar those here, shipowner reached applying law. We granted certiorari 394 996, 89 1591, 22 774 (1969), resolve conflict, clarify workers important federal II 7 parties agree measured compensation employees, case two statutes identically. defined include 'any who, rules determining employee,' language effect.5 These definitions included original Social Security it adopted 1935, merely specifying 'includes officer corporation,'6 but added amendment 1948. must consider events prompted amendment. 8 1935 draftsmen apparently thought unnecessary elucidate meaning because assumed term, applied varying factual situations, given 'usual' bore See S.Rep.No.1255, 80th Cong., 2d Sess., 3—4 (1948). years myriad work relationships, lower courts developed somewhat approaches, certain relying more heavily precedents others attempting discern special term legislation.7 addition, tended look local determine standards, producing different results situations parts country.8 divergence views led 1947, render decisions attempt States Silk, 331 704, 67 1463, 91 L.Ed. 1757; Bartels Birmingham, 332 126, 1547, 1947. 9 upheld courts' truck drivers were, circumstances, independent contractors rather than upset ruling respect group men unloaded coal railroad cars. reversing Appeals, members dance bands halls engaged, despite characterizing them Court's opinions cases stressed many factors determinations status, also contained could read detach statutory coverage tests.9 stated, Bartels, 'in social legislation matter economic reality dependent business service.' U.S., 130, S.Ct., 1550. 10 Acting language, executive agencies set about replacing regulation, employment relation incidents law,10 new regulation embody 'economic reality.'11 proposed never took effect. Within months its announcement, resolution introduced House Representatives Senate calling 'a reassertion congressional intent regarding act.' S.Rep.No. 1255, supra, 7. resolution, finally passed President's veto, present 'employee.'12 11 Finance Committee makes purpose disapprove reaffirm based traditional legal tests. seems have Silk suggesting less constrictive approach. nothing Treasury Department claimed support contemplated departure, declared: 'But contended Supreme invented social-security system cases, reestablish rules, realistically applied.' Id., 2. 12 causes dissatisfaction twofold. As fiscal matter, cited testimony extend security 500,000 750,000 workers, covered previously contributed trust fund paid, thus, endangering integrity fund. More generally, fearful uncertainty created discretion give applicability stated: 13 'In word, unbounded shifting criteria, (the regulation) confer administering include, or exclude, act person whom might decide be, 'employee'; like fasten liabilities administrative duties costs compliance 'employer.' 14 'The discards distinguishing distilled insights real rule nebulous character. 15 'Under 'an service he renders his contractor.' 16 rule, obviously, will serve make necessary distinctions. Who, whole world sort some other person? 17 '(T)he concerns itself mainly, stated your committee witness hearings: '* abundantly virtually no state may anyone liability until Commissioner made up mind it." 7, 10, 11. 18 that, contrast whose 'basic principle dimensionless amorphous abstraction,' existing 'not devoid uncertainty, basis frame limit application.' 12. conclusions Report similar. H.R.Rep. 1319, Sess. (1948).13 By Congress unequivocally tied body decisional defining occupations. 19 none discussions 1948 there discussion argue failing specific provision seagoing impliedly decreed occupations should gauged law' activities. They rely part fact phrase sometimes contradistinction 'maritime traditionally admiralty, point employee's central Committee's understanding tests employment. quoted approval then-existing substantially identical now effect,14 20 'Every him performs employee. 21 'Generally such exists performed right direct services, only result accomplished means accomplished. That is, subject what shall done how done.' S.Rep. 3. indicates nature vocation impracticable nevertheless applied, 'employment' III 23 do think intended anomalous having purposes, relevant seafaring enterprises. Such accomplish dual underlying Application open brand areas coverage. To contrary, operations supported interpretation, issued 1940, immediately first brought 1939. S.S.T. 387, 1940—1 Cum.Bull. 192; see Amendments 1939, §§ 606, 614, 53 Stat. 1383, 1392, amended, 26 U.S.C. 3121(b), 3306(c). ruling, Administration accepted paying claimants, existed eight mentioned time Since represented view taxing agencies, concern payment constitute uncompensated drain fund.15 24 important, chief behind avoiding reality' wholly satisfied relationships tested against maritime, land-based, Congress' fearfulness 'nebulous' 'usual generic sense, mean adjudication, technical sense opposed admiralty. Maritime law, men, provides network distinctions practically suited necessities sea, just adapted forms domestic goal minimizing can accomplished, field, resort jurisprudence.16 weakened emphasis given, factor control. Control probably most law,17 true enjoy unusually broad standards—a dictated activity. except nearly total relinquishment bareboat, demise, charter, considered, sufficient charged employer. See, e.g., Norland, 101 967, Alaska 471 (C.A.9th Cir. 1939); G. Gilmore & C. Black, Law Admiralty § 4—23 (1957). stress importance reflects primacy common, vocations,18 certainly foremost does preclude application, areas, vary precise required. Cf. Deecy Products Welch, 124 592, 598—599, 139 A.L.R. 916 (C.A.1st 1941); MuGuire 349 644 1965).19 guidelines allow flexibility, attested existence, 30 years, confirming here. Now, 1948, proceeds, already quoted, elaborate important: 27 discharge indicating possessing Other characteristic employer, necessarily every furnishing tools place work, services.' CFR 31.3121(d) 1(c)(2).20 28 brief sketch cannot provide workable test, complete itself, displacing complex so carefully tried preserve. Rather, summary principles initial guide determination, required sentence 'is employee.' thrust statute govern field 'legal relationship.'21 29 conclude erred declining judge Accordingly, judgment reversed, remanded proceedings consistent opinion. ordered. 31 Reversed remanded. 3101 seq. 3301 respondents, January 1, 1956, December 31, July 1957, 1958. called to, not, intimate correctness Appeals' statement score. provide: 'For FICA), means—(1) corporation; (2) employee; (3) (any member including fishing, conditions satisfied).' 3121(d). FUTA), includes corporation, include—(1) contractor, (except corporation) rules.' 3306(i). 1101(a)(6), 49 647. 1101(a) (6) 1426(c) 1607(h) Internal Revenue Code predecessors 3121(d) 3306(i) Title 26, respectively. 178, 188. Compare, Jones Goodson, 121 176 (C.A.10th Radio City Music Hall Corp. 135 715 (C.A.2d 1943); Mutual Trucking Co., 141 655 (C.A.6th 1944); McGowan Lazeroff, 148 512 1945); Wholesale Oil 154 745 1946), Vogue, Inc., 145 609 (C.A.4th Aberdeen Aerie, etc., Grace Magruder, 80 U.S.App.D.C. 53, 679 (1945). 6. said: 'As attack recognized evils our national economy, constricted interpretation phrasing comport purpose. When problem differentiating contractor) arose administration National Labor Relations Act, (29 U.S.C.A. 151 seq.), pointed fix responsibility acts servants, agents reduced certainty said 'some simple, uniform easily test.' word 'employee,' said, art, content context construed light mischief corrected attained.' concluded since elimination labor disputes strife, reality. rejected 'technical concepts pertinent third persons servants.' (National) (Relations) Board Hearst Publications, 322 111, 120, 123, 124, 128, 131, (64 851, 88 1170). 'Application follow case.' 712—714, 1463. Fed.Reg., pt. 1764 (1936), promulgated November 9, 1936 (Treasury Department); Pt. 1276 (1937), 20, 1937 (Social Board). Fed.Reg. 7966 (1947). H.J.Res. 296, 62 438; H.R.Doc.No. 711, (veto message President Truman). put negative form 3306(i), n. 5, supra. 1950 restyled predecessor 3121(d), giving possessed provision, changing specified classes irrespective status. 205, 64 536; H.R.Rep.No. 2771, 81st 104 (1950); cf. S.Rep.No.1669, 17—18 H.R.Rep.No.1300, 1st 91, 189—207 (1949). published weeks enactment (commenting H.R. 6777, bill ultimately resolution), Ways Means 'Our failure conferring unbridled license say, will, contractor *. basic, controlling policy cover broader class individuals hypothesis bounds 2168, 31.3121(d)—1—(c). Subsequent amendments laws even clearer clasisfication threaten extended self-employed time. 502, 540; 9—10 Benefits financed Self-Employment 1401 seq.; 135—145; 153—166 (1950). Therefore, eligible considered self-employed. A frustrate evident expectation seamen, specifically fishermen. above, 1939 Additionally, 3121(b)(4) exemption aliens foreign vessels, 3306(c)(17) exempts exceed tons displacement. raise inference larger expected covered, provision. shipowners relieved employers' unless activity, seriously limited. 965—968, 630, 637—641 (1964); 4—21 715, 717—718 1943). H.R.Rep.No.2168, 13, 9—10: 'Ample flexibility possible common-law) accommodate peculiar unusual frequently system. concept master servant, course, fixed immutable itself. Hence produce practice circumstances jurisdictions. But variations offend fear differences tests, much abandonment resolving questions fact. simply amount reliance principles.' significance discussed 1757 (1947); Enochs Williams Packing Nav. 370 82 1125, 292 (1962); Kirkconnell 347 260, 171 43 (1965); Illinois Tri-Seal Products, Inc. 353 216, 173 499 (1965). find contrary shortly unsuccessfully sought 3121(d)(3) regard definition 3121(d)(2), became 1967, H.R.12080, 504(b), (1), (as amended Senate); S.Rep.No.744, 90th 203—205, 320—324 (1967); H.R.Rep.No.1030, 74 (1967) U.S.Code Cong. Admin.News, p. 2834. (Conference deleting amendment). chose proceed legislative front impair argument forth adopt dubious indication position 1967 us, let alone Price, 361 304, 310—312, 326, 330—331, 334 (1960); Wise, 405, 411, 1354, 1358, 590 (1962).

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