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Content Last Revised: 10/14/69
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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 788  

Forestry or Logging Operations In Which Not More Than Eight Employees Are Employed


29 CFR 788.16 - Employment relationship.

  • Section Number: 788.16
  • Section Name: Employment relationship.

    (a) The Supreme Court has made it clear that there is no single rule 
or test for determining whether an individual is an employee or an 
independent contractor, but that the ``total situation
controls'' (see Rutherford Food Corp. v. McComb, 331 United States 722; 
United States v. Silk, 331 United States 704; Harrison v. Greyvan Lines, 
331 United States 704; Bartels v. Birmingham, 332 United States 126). In 
general an employee, as distinguished from a person who is engaged in a 
business of his own, is one who ``follows the usual path of an 
employee'' and is dependent on the business which he serves. As an aid 
in assessing the total situation the Court mentioned some of the 
characteristics of the two classifications which should be considered. 
Among these are: The extent to which the services rendered are an 
integral part of the principal's business, the permanency of the 
relationship, the opportunities for profit or loss, the initiative 
judgment or foresight exercised by the one who performs the services, 
the amount of investment, and the degree of control which the principal 
has in the situation. The Court specifically rejected the degree of 
control retained by the principal as the sole criterion to be applied.
    (b) At least in one situation it is possible to be specific: (1) 
Where the sawmill or concentration yard to which the products are 
delivered owns the land or the appropriation rights to the timber or 
other forestry products; (2) the crew boss has no very substantial 
investment in tools or machinery used; and (3) the crew does not 
transfer its relationship as a unit from one sawmill or concentration 
yard to another, the crew boss and the employees working under him will 
be considered employees of the sawmill or concentration yard. Other 
situations, where one or more of these three factors is not present, 
will be considered as they arise on the basis of the criteria mentioned 
in paragraph (a) of this section. Where all of these three criteria are 
present, however, it will make no difference if the crew boss receives 
the entire compensation for the production from the sawmill or 
concentration yard and distributes it in any way he chooses to the crew 
members. Similarly, it will make no difference if the hiring, firing, 
and supervising of the crew members is left in the hands of the crew 
boss. (See Tobin v. LaDuke, 190 F. 2d 977 (C.A. 9); Tobin v. Anthony-
Williams Mfg. Co., 196 F. 2d 547 (C.A. 8).)
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