Broadway Cab LLC v. Employment Dept.

A person can be considered an employee even when wages are paid directly from a third party receiving a service and not from the putative employer.

Broadway Cab LLC requested review, contending that the Administrative Law Judge in the original hearing erred in holding that Broadway owed unemployment insurances taxes on the wages of its drivers. Broadway argued that its drivers were not employees because the drivers did not perform services for Broadway, rather Broadway provided services for its drivers. Broadway further argued that if the drivers were found to be employed by Broadway, then it was as independent contractors, not making them liable for unemployment insurance taxes. This Court found that even though Broadway did not give wages directly to the drivers, the wages they received were still considered “remuneration of wages for their services” making it so that the drivers were employed by Broadway. This Court also found that the drivers were not able to meet all of the criteria to be considered independent contractors and that Broadway, therefore, is liable for unemployment insurance taxes on the wages earned by the drivers for the time in question. Affirmed.