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In re Appal of Ann Miles Builder12/8/2003
Compensation Appeals Board
Argued: October 15, 2003
The petitioner, Ann Miles Builder, Inc. (AMB), appeals a decision of the New Hampshire Compensation Appeals Board (board) that the respondent, Michael Veltsos, was not an independent contractor, but instead was AMB's employee for purposes of the Workers' Compensation Law. See RSA 281-A:2, VI (1999) (amended 2001). We affirm.
AMB is a small construction company involved in land development, restoration and new construction. Michael Veltsos Construction and Home Building, LLC, was formed by Veltsos in approximately 1995. Veltsos' business has a federal employer identification number and in the year 2000, he reported that his income was derived from his business. Between June and December of 2000, Veltsos provided services to AMB in connection with a building project. Ann Miles, the sole proprietor of AMB, served as the general contractor on the project.
When Veltsos first worked for AMB in the spring of 2000, he provided a certificate of liability insurance. Veltsos brought his own truck, tools and laborers to the jobsite where they unloaded and sorted lumber. AMB closely monitored the work done at the site and required Veltsos to keep a timesheet. Veltsos was paid by the hour and his checks were made payable to "Michael Veltsos Construction." Veltsos, in turn, paid his own laborers.
Veltsos provided services to AMB for a second time near the end of September 2000. Again, Veltsos turned in a timesheet and was paid by the hour. At this point, however, the checks AMB gave to Veltsos were made payable to Veltsos individually. Veltsos continued to pay his own laborers. On October 3, 2000, Miles arrived at the jobsite and found that no work had been done. She informed Veltsos that his laborers were not to return to work. Veltsos himself also stopped working for AMB at that time.
According to Veltsos, his relationship with AMB changed when he provided services for a third time beginning around October 30, 2000. Although the certificate of liability insurance that Veltsos originally provided to AMB had expired, he did not proffer an updated certificate. Veltsos was paid by the hour and the checks he received were made payable to Veltsos individually. Veltsos did not bring his own laborers to the jobsite and the only tools that he brought were his saw and tool belt.
Veltsos testified that he had no control over how the job was accomplished during this time period. Miles, on the other hand, testified that she was on the jobsite for approximately two hours each day and advised Veltsos on the construction plans but did not tell him how to do his job. In addition to framing, Miles asked Veltsos to install a handicapped bath and shower stall, install windows and put up a suspended ceiling. Veltsos also testified that Miles required all laborers to arrive at the site by 7:30 a.m.
On December 4, 2000, Veltsos injured his neck and back when he fell approximately twelve feet and landed on a concrete floor. He filed a claim for workers' compensation that was denied by AMB on the basis that an employer-employee relationship did not exist. Veltsos appealed and a hearing was held at the New Hampshire Department of Labor. The hearing officer found that Veltsos was an independent contractor and denied his claim for benefits.
Veltsos appealed and received a de novo hearing before the board. The board found that an employer-employee relationship existed and ordered AMB to compensate Veltsos. In its decision, the board relied upon RSA 281-A:2, VI (b)(1) and presumed that because Veltsos worked for pay for AMB, he was an employee. The board noted, however, that Veltsos' s
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