Friendly Caab Company Case Study

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N.L.R.B. v. FRIENDLY CAB CO., INC., 512 F.3d 1090 (9th Cir. 2008) OPINION by CALLAHAN, Circuit Judge: Congress enacted the National Labor Relations Act ("the Act") to protect the right of employees to participate in collective bargaining for the purpose of negotiating the terms and conditions of their employment. In an effort to avoid an application of the Act and its concomitant collective bargaining requirement, Friendly Cab Company, Inc. ("Friendly") maintains that its taxicab drivers are independent contractors, rather than employees, and are therefore excluded from the protections of the Act. After conducting an unfair labor practice proceeding, the National Labor Relations Board ("NLRB" or "Board") concluded that Friendly's taxicab…show more content…
United Ins., 390 U.S. at 256, 88 S.Ct. 988(stating that "there is no doubt that we should apply the common[ ]law agency test . . . in distinguishing an employee from an independent contractor"); Merchants, 580 F.2d at 972-73 (same); Restatement (Second) of Agency § 220 (1957) (common law agency principles). Although courts must look to the totality of the circumstances, "[t]he essential ingredient of the agency test is the extent of control exercised by the `employer.' It rests primarily upon the amount of supervision that the putative employer has a right to exercise over the individual, particularly regarding the details of the work." SIDA, 512 F.2d at 357(internal quotation marks and citation omitted). Additional factors that are relevant to this determination include "entrepreneurial aspects of the individual's business; risk of loss and opportunity for profit; and the individual's proprietary interest in his business." See Merchants, 580 F.2d at 973; SIDA, 512 F.2d at 359; see also Corporate Express Delivery Sys. v. NLRB,292 F.3d 777, 780-81 (D.C.Cir. 2002). We must assess and weigh all of the incidents of the relationship with the understanding that no one factor is decisive, see United Ins, 390 U.S. at 258, 88 S.Ct. 988; and that "[i]t is the rare case where the various factors will point with unanimity, in one…show more content…
In Carnation Company v. NLRB,429 F.2d 1130 (9th Cir.1970), this court found that Carnation's requirement that its dairy distributors maintain advertisements on their work vehicles did not evidence an employer-employee relationship. Id. at 1132; see also Associated Diamond Cabs, 702 F.2d at 921 (concluding that income from advertisements that went to taxicab company was "irrelevant to the issue of an employer's control over the lessees"). Similarly, in City Cab of Orlando I, a taxicab company's requirement that a driver return to its facility in order for a mechanic to place decals listing the new telephone number of the company was found to not be the type of control normally exercised by an employer over an employee. 285 N.L.R.B. at 1206. This was because the decals primarily benefitted the taxicab drivers and the general public. Id. In this case, Friendly's requirement constitutes significantly greater control. Friendly's advertising requirement represents a form of control that inures to the benefit of Friendly at the financial expense of the

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