the oorreotu*aa of our hcM.ding that
the iadftldoal
portorming sirniooa fn the leoaad deprrtmoata MAoh
are the aubjeot or the ‘foa80’ agroeaertf a8taohad
are in the, omployaent oft tho Soaaar deportmoat
atoP..'
Th0 6efiBstsQR Of Omg2OFBOBf66 fCUBd in Am010
5221% rJeotion &7(g), VornQ4a’aAaaOt6tOd civil etatut6a,
roada:
sor wauoa or under am ~oonbraot ol’ bin. writton
#e th%Bk 1% de0 OX%iBm tQ, QRQtr 6 p&iiOB Of
Artlolr 522lb,~Seotlon X7(0’‘g,:
r). . .. Xaoh inditl4urIl 8EplQJOd to Qirfana
or Oo~aaaiat USApasrfor?Ptng *be uor& dt any agonlr
ar aie~loyoe~~of aa OmQloySng;nnit ahall bo deemed
to be oaployod br such Oi8QlOyiB$ onit ?or ell the
parpoaeo oC this Bet, nhothor auo& lodiridoal woo
hSro4 or mid 4irootly by luoh eviployling unit or
tiy au& .egmt or oaploywe, pmwidocl the em~loylsq
unit tad lotaaZ or oclnatructite kw~~lodge of the
Work.-, .,:’
Tha orhiblta attached tb thia ,mquy%t reilrot om-
traata ontored into betmen the X drpartmen%~abOr@, 11
with an indi~ibuel, pertnsrahlp aad corpcmtioa ror t
the oi leased. bcpartpaclnta within the lasaor 8t0re.
The aontrlrots subdtte8 are olzcilar end ptarpcrt
to oreHis a oontrsot reletionahip betwean the oontraoting
partioa, spscifioally Blaerawi~g * joint vetituxs or enter-
prise or a letticg of rpaoe within the B.s)srtmnt stow.
i -.~’
-1 I I
Sonoreblo Cla& A. Willirma, Pago )
20 err not oQBOD~6~ wltb the pusp~aa or rea8O of 8he leawr
In sublotting er in loae%ng tarloua 4iepartwnt8 wlthin lta
store. But, wi or0 oat104 tipen to aeoulo, nh8thar the fn-
dividuala en(rsed In mploymmtt to .tho rarlwa laue4 dapar$-
menta am parfoznlng, wrviooa free iron eantrol or binotion
or the loanor @artaanO atore.
tar th8 pmpoae 0r thin oplalon %t la woeaarry
that oartaln %aota,wmoa to the oontraota aubaittod, be
roTmviBd in dOtOl’RbiiBg tam OOBtWl or right or OQntrQl, hod
or uorolaed ,bythe lunar over thr lndir%dnalr ongag@ tn
the luwd 4epar8nunta. In th eo o ntr a olt
ub a lttok4 tmo n
th o X dep a M nt ltojo and
Lillian Famll, n noto the fol-
lodn$ atlpulatlcna portinont to the UDmiBrtiCB or the ro-
15tiOBDhiD~ there OXiDtin~. PC~X%Y Qr 8hO mFDt PU8, ShO
1oaa0r,roao~oa the right to: rfx an4 otioroa all ruler
and rsgulatlon8 of 8hr opuafion~of the atcm on4 tha laaaad
departwnt; TV’oontrol the. lp9mmnaa and the merohmdiae
ocntain~b in thr lwaad departmsnt; tho right ,to wambo an&
approve the admrt~alng ot the loaaoe; to ?ir the minlmtm
amunt Of adtortlain~ 80~0 ~by the. lerwe Wring aaoh part
to twttlfi NW ComplalnOa or diagutoo arlalng with the OIUI
tomera ot aaid,’ ~eaa~ ffeportmantan& to n&k0 tiaaoimble ad-
justment d&h aaoh ou~tcaar~ fiQ nquln the loaaee tQ noeire
baok any ?norohaadlao-aoid by eald leaaao that ia roturna~ by
the oaatomar~ to oontzol the per8onnol of the louaH) bj oaua-
ing diaml~aal ot aw,poraen or parsona who are objaotlonable
to the bmwrc : ‘/,,
2& ii& o ’ik i0a t0lapi0y
m* wri0;Oe prr~a-
no1 and propar2y aonduot aad oarayan tho buolmaa and to
engags an6 oon%rol lta lnxpla~ea and a&ante aub$oot to the
rule6 fin8 nfplstlona oi tJm &rawr; act ‘to wll or allaw
to bo aold in ita departrsrnt anj morohant3iaa other. than th&
agreed upon in thrir oontraota~ not to 08rzy any morohaaalee
tha charaotor oi *blob la not aatlataotor~ to the leaaor;
no8 to elrgaw In any additional buaiueaa~ other than that en-
mged in at the tlam of the aigplmgof the lww oontraot
ulthaut the pomlaalon of the leaaor~ to kwp the a~purenoe
ot lta atook and departiaent ~atiaraotorJr to tho laaaor;not
to sell anr nerohrndlw on orsdit except to auah pareone an4
in suah amountsaa tb lraaor ahall rlret appxwa aooor4t.q
to the mathode of appmral, ta rogue in that shorn; all ao-
aounts aooruing on aooount of Dales on oradlt shall be deearad
to bsoorm snd be tho .aroounta ot tho loilaora not to gernit
any psrt o? tho apaor~leaaa& ~to rsmaia vaount or unoaoupfad,
55
rloaorebl4 mwa4 A, Wllllw, Pa* &
or intertam iB 4!ly I(lBnSr ~h40000VW with tha ingr.08 ax’
egress oi the eaployeoa of theloaaor~ aot to interien
throu@ the oialea .or o&Wtln@ with thb lnp*aa or egreaa
or tha employou o? the .laaaor 0~ to.gwmlt auy dlaeowtaay
to be ahown than& thatla apito c# Oha binding obliga6lonm
of t&r oontnotqv5 tha S~gaea for IIper104 of firs years,
the lamor mar t6amiJmta fir a&aenoat upoa tea 6ayra notin
for bmaoh of a4 oi the w OtipulOfdons ~o*ldod in th0
00n~aOt*~ ~
T h 4p h o to a tstio
oopyo fths lg m m a nt
ea ta nd
lnto
botwaan X~dr p a r tmmt ltora aad *not&r leaa dloeloaoa oar-
taih at&m nat*iotioaa plae8d upon tk La8me. Aaollg those
reatrlotiou8 we find tha lonormmuot maintainenall operatein
0 ~8nn0r aatiareotory to ia~00r 0 rirot-01800 high-ttrfiae de-
partment far tha aala or osrtatn rwMaudlae~ laano a&me8
that it0 burlnaao rrbdll f0 all OUtWard8p~alWM~6, tXt@Dt
em to the areditoro csf the departraant, Ee ooabtiatod la a do-
pertmant ot and undqr the trade 55~~ o? the leamar, it bei5g
uederatoad and 4grnb that. this eondlMoa la ona of tb prin-
olpla 00501d0mCbu0 or this oontrsot: oaeil C.O.D. or lay-
aWOyOale i0 t0 b0 Ilppmed bJ th0 4l-OditS deDOl'tseUt Or th0
an aredit
lessorla the aam BMUAILW aalea~ all matter8 of
dispute ariafng between the lessee 454 soy of it* 04mtowr8
and with rmpao0 to olebo of aey kind mado by losaeo*a ew-
tomera, leaaer ahall k the judge and ita 6ealaion &all k
fin01 and bin4ilrrJ UpOO];08000; th0 UiV0a Or~tba pmtiO0 t0
the agresaant aball k entltlad to raoel~a d~ao~ta aabo
upon tha pnrdla@clr in any af the doputapants but #O WiVOa
of orr$oera of lessor shall M antitled to &crc\urt in *0-
oordanoe rlth 1~1880r~8 Jbaotiob, the 20$ dlnoowt ligitotion
notwltbrtandieg, that ouch aslea to wire8 ot olfiwra of lea-
110r shall ti rant rrae; loaae* PUIJT employ a cmmpr for It0
bua$.nncaaat ita.expmae but the 9erOon 6nployed aa muoh
DIOli@&O~ S&O& b@fOm hi8 @kQi~O~Dt, b@ iir6t aW2W.d by
ths lasoor. Lasses r&11 also employ at its exponm all
alter6tiOn help iOr it6 d~&NU'tB%kIb.al OWh pW6OW EhOll
before ept~loyment ba appr~*sb by &bOOOX’, lea8eo shall not
oontinue in it0 employmnt any pOra0n lnoluding it0 m0U*&aT
who ie objeottonable to Zaauorr any auah rRpl0pe,or aunagsr
who ahell at any tint8 beoae, objootioaable to leeoor k
Qiaobargad.
Advartlng to ths ~0rdiq of tha OtOtUta defining
eaployamnt end ooasidorlng thr reetrfotiono gleoe& in tho
coatraat between the lsaaor and lessee, it appeamJ obviotla
to ua that the lessor retninsb ths right to oontrsrsl OF di-
reat the porioraOrm0O of th8 Oor~l000 rondared by tha per-
OOUBengaged in the departments of the lessees. The atetuto
.
fhao~ebleOlauda!A. W.U8m*, Pa&a 5
rsqulraa tfmt auo~,.lndlvl4ual. aha ba fraa ?rca oontroZ or
dlraotlon overtha'paHorman# cg t&Lb!morvlaea, to be ax-
oludad from tha dofin%tioa of th& term "am loymant". Thara
are nray oaaba ia thla atetw holding that, e he right to OOJW
trol rather than the lxarola~than& detomln~a whetbarone
la an anployao or an ir06penbont ocmtraotor.T. & N. 0.
!bilvayCo. w. Rittlmen, Q 8. 8. (2a)745. 2) Tes. Jur.
pg. 546, 4 Tax. Law 88vlew~N?7.
The iaota mlq&lmi do not dlnalona that the b8ra
ax~rolarda rtriat~oostrol@VW tho parrorrmnoes ot the lorv-
Ices or the lnditieunla &XIthe laaauU i3epartx5ents,~‘but ardor
tha oontraota attach6 Ce~youFrequest alearly tho rl& oi
control was ret&ml by tha lausor., To oeaaot riauellao a
8 mom rigid ouperrlslon en4 conarol ovex ertployoes t&en the
ri@kt to oauaa term%aotioa ot their aonbma if nob satlrtaa-
tarp to.thu luaaor.ii Tho sale8 mode by the lnai+lduala ln
tha laaasd department on oredltor by ohaok mst ?+a ~prwab
by the 18s~~~~ they faax not be diaaourtaoua to the 3ssaor or
any of ita otb? pdwntnelt tbo a~p811r62144~ the amtmgemnt,
the qualLtr an4 the displayot mrohandlao by thwe indlvt,
duals muat maet with the appro?al of the loasar.
nrtiola 522kb; Zaotion V(e) qaatodSB pa& pro-
fldeo that an indlvLdsalrniling wwain tbo 4utfnltlonOf
%uploynwLt",alro waked haz?in 18 dee!#dhlrsd by %a en-
ployi~g unit lr ooatrello4b it rdrotber~
the? wore hitnd oc
loy&q unit or br rush amnt or N
‘paid direotisby sooh e"f~
ployee providing tha amp oWi4 uait:had aotual ox oonotrue-
tivu fmowlsdae of tha nork. Olenrlp the luesor had kaowle@
ot t&u work doxm $81the leaarbdeyartxmnta6 tboy appzomd,
those dapsrtsanta.
the jmrsonnel.oi
W@ :ddnat think it moieaaryto argueat length
the terms otithe owtrakt:a aubgitto4. %er in our opinion,
tho rastriotlosa. L~goaad IXon the paraonaal of t!n l@mOu8
olasrly refuto.tha s 05 tbbet th;hef afo fme $2~
.orrp&aa cm-
tool or diraotlan;or the laaao&
HEWhimi found a meat reeont ruling of tha Romaa
of Intarnal ffavei~w upon 6 afuller aituatton, ra@otiad ia tha
Fnemploywnt Cempaoaatlon interpretation aremlos,-Federal
c%rlos auppltmant~orXaroh 15, X941, aa 5Oblr.P.T.409. This
iact aituatl&sdlaOlosrd that the J&Comxm~ opsratcldII1eaOOd :
depertrmntia the riDeprrtxent Rtoro snga;sging et all tlmaa~at S
lseat ten persons’in ita departsent. Cenclmllgthe u COmpWW
hired fta o~ltl aalas people snd ~~~~agerlicalhelp and goid their ,‘*,,
-.A
,
Honoreble Clauda A. Yllllllu, P8g, B
romuneratlan.
Their oohmob also rrqulredthat the craaployo.8
of the % COQlpllBy
Wfit OOJliOnl to the tile8 8Bd l%@&btiiXM Of
the 14 Departwnt 3em.
2% fBtOrM1 !btenPe Ikpertiwnt than ruled ttmt the
W Dspartment Store uas the llllployw beoause it wB8 rpprmn8
from the foot8 and the portlosntmgutotlons that the 9rimarf
ri&t of dimOt$OB ItBdOOBtl'Ol0-r the p*riOmBOe Ot the
aenioea by the as~plo,ya#r in the leraed departwontwas re-
tsimd a ndlx e r a irb~y
dt& A DOpmrtm@nt 880n.lo lnr o i~-
ing auoh oontrof, the # Deputwmt 88Om mfi mot letiBg (I*II
sgmat of the Y Company bat mr rating on ita khrlf (~a grin-
oipal . Aooor6ln~y, the w ~partmont mom was th8 lll$lo~r
a nd me lia a le
$ 0th
~ alooiel r+ourity end amplo~t terma
basedupon t&e wage8 of the ~omons variotPsixg 88nio48 in
the lsessd dsprrtasntat tbo F4 Dapar8went Storm.
lws mltng oosartird upon the raot that thr saplofle
wes subjeot totho wUl udt oOntm1 oi the H ~98rtment 80019,
not only as to u&t should ba done but how it atiould be Bono,
but that it wsi3 not nuocrmary the8 t&o eno9Zopar aotuttllg dlMot
the p8rfOXTfl~OOOf the a*TViOeOi i8 i8 WlftiOii?Bt if ths ri&ht
to oontaolthem 1s retained.
The raots In th* above wntlonrd 8ituatlon are abl-
lar and the ruling is dlmotly In point In the Pitter beiuve
ue in thu opbion.
to are not paedag upon the rslstionilh%p of Bha VW-
ties ondsr ~oOnsidW8tiOB 6XOeBt 68 to llrb%llt~Under'the da-
rinitlon or enrploynsat ia ths Taxmk Vnq19loymaat Gowwwtioza
ti0t.
*es,th+0m, rdriiejOa that the 9waonr
engaSsd
in the pertornenoo of renio,a in Obe leaned departxmita or
the lessor department store LT~J9erforning senloo8 under the
dlrrotion'and control of tha fasrror store regardlass of the
legal ohamoter of the 1Nmea. In our opinion there fa the
sama Uability for taxes on the Wages Of the 9WWOM W@@d
by the oorporation es for thO8a 0i a 9aHmWShlp or en fadl-
vldual.
Toura very truly
\ T?.T;,$-
G,+p-
i:li~yy.:;:7-3y
:-1 ~
-‘-.@A:; 02 ma9
~xEim9