Matter of Ovadia v Office of the Indus. Bd. of Appeals

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This case arose when a real estate developer hired HOD to act as general contractor for the construction of two multi-family residences. HOD entered into a subcontract with Well Built for the masonry work. At issue was whether a general contractor acted as a joint employer of masonry workers, who were employed by one of its subcontractors, thereby owing unpaid wages to the subcontractor's workforce. The court held that the Board erred as a matter of law in relying on the federal six-factor test in Zheng v. Liberty Apparel Co., Inc. in reaching its determination of joint employment. Because the Board's factual findings indicated nothing more than that the usual contractor/subcontractor relationship existed between HOD and Well Built during the three-month period that Well Built's principal, Martin Bruten, was on the job, the court need not resort to federal precedent to resolve the issue. In any event, even if the court were to apply the Zheng test, the court would hold that HOD was not a joint employer of Well Built's employees. Accordingly, the judgment of the Appellate Division should be reversed and the matter remitted with directions to remand to the Board for further proceedings. View "Matter of Ovadia v Office of the Indus. Bd. of Appeals" on Justia Law