SAEJ Enterprises v. WSI

Filed 3/19/20 by Clerk of Supreme Court IN THE SUPREME COURT STATE OF NORTH DAKOTA 2020 ND 61 SAEJ Enterprises, LLC, Appellant v. State of North Dakota, by and through Workforce Safety and Insurance, Appellee No. 20190370 Appeal from the District Court of Burleigh County, South Central Judicial District, the Honorable Gail Hagerty, Judge. AFFIRMED. Per Curiam. Jacqueline S. Anderson, Fargo, ND, for appellee; submitted on brief. Dean J. Haas, Bismarck, ND, for appellant; submitted on brief. SAEJ Enterprises v. WSI No. 20190370 Per Curiam. [¶1] SAEJ Enterprises appeals a district court judgment affirming an administrative law judge (“ALJ”) decision that affirmed a Workforce Safety and Insurance (“WSI”) order determining SAEJ is an employer and liable for workers’ compensation premium. SAEJ argues the ALJ did not reasonably determine the workers serving as fill-in (relief) pumpers were SAEJ’s employees, rather than independent contractors. [¶2] “Whether a worker is an independent contractor or an employee is a mixed question of fact and law.” Workforce Safety & Ins. v. Larry’s On Site Welding, 2014 ND 81, ¶ 14, 845 N.W.2d 310 (quoting Matter of BKU Enters., Inc., 513 N.W.2d 382, 387 (N.D.1994)). “In reviewing a mixed question of fact and law, the underlying predicate facts are treated as findings of fact, and the conclusion whether those facts meet the legal standard is a question of law.” Larry’s On Site Welding, at ¶ 14. “Whether an employer has retained the right to direct and control the services performed by workers is a finding of fact.” Id. (quoting BKU Enters., at 387); see also Workforce Safety & Ins. v. Questar Energy Servs., Inc., 2017 ND 241, ¶ 9, 902 N.W.2d 757. Here, the ALJ made specific findings on the predicate facts and considered the common-law test and twenty factors under N.D. Admin. Code § 92-01-02-49(1) to determine whether a person is an independent contractor or an employee. See N.D.C.C. § 65-01-03(1). [¶3] On this record, the ALJ’s findings of fact are supported by a preponderance of the evidence, in that a reasoning mind reasonably could have determined the findings were proven by the weight of the evidence from the entire record; and the ALJ’s conclusions of law and decision are supported by its findings of fact. See N.D.C.C. §§ 28-32-46(5), (6), and 28-32-49; Power Fuels, Inc. v. Elkin, 283 N.W.2d 214, 220 (N.D. 1979). We summarily affirm under N.D.R.App.P. 35.1(a)(5) and (7); see Larry’s On Site Welding, 2014 ND 81, ¶¶ 1, 21-23, 845 N.W.2d 310 (affirming ALJ’s order finding welders were independent contractors when its findings of fact were supported by a 2 preponderance of the evidence and its conclusions of law were supported by the facts); see also Questar Energy Servs., 2017 ND 241, ¶¶ 1, 10, 16-18, 902 N.W.2d 757 (affirming ALJ’s decision reclassifying employees when its underlying factual conclusions were supported by a preponderance of the evidence and its legal conclusion of the employees’ classification was supported by its factual findings). [¶4] Jon J. Jensen, C.J. Jerod E. Tufte Daniel J. Crothers Lisa Fair McEvers Gerald W. VandeWalle 3