P-T-23-CaliforniaUnemploymentInsuranceAppeals.docVIP

BEFORE THE CALIFORNIA UNEMPLOYMENT INSURANCE APPEALS BOARD In the Matter of: SACRAMENTO PROFESSIONAL PRECEDENT NURSES, INC. TAX DECISION (Petitioner) No. P-T-437 Case No. T-84-119 EMPLOYMENT DEVELOPMENT DEPARTMENT Office of Appeals No. S-T-11586 The Department appealed from the decision of the administrative law judge which held that under the doctrine of collateral estoppel the Department is estopped from denying that the nurses whose remuneration formed the base of an assessment against the petitioner were independent contractors and not employees of the petitioner. STATEMENT OF FACTS On November 19, 1975, the petitioner, a nonprofit corporation exempt from federal income taxes as an organization described in section 501(c)(3) of the Internal Revenue Code, filed articles of incorporation with the Secretary of State of the State of California setting forth the general purposes of the organization. In essence, the organization is a group of registered nurses and licensed vocational nurses who have joined together as an incorporated association to assist each other in securing work with hospitals and other care facilities in the greater Sacramento community and to promote and enhance professional standards. Sometime during the early part of 1982, one Jacklyn F. Jennings filed a claim for unemployment benefits listing the petitioner as her most recent employer. The petitioner immediately responded indicating that Jennings was a self-employed individual and that the corporation did not have any employees as such. The Departments auditing section then conducted an investigation to determine the employment status, if any, existing between Jennings and the corporation. As a result of the audit and investigation a determination was made that Jennings was in fact an employee and a notice to that effect was mailed on April 5, 1982. An appeal was filed by the petitioner to the Departments determination and a hearing was held on Jun