Perez v. Columbus Mgmt. Sys., Inc.

211 A.D.3d 1261

181 N.Y.S.3d 680

In the Matter of the Claim of Rodrigo S. PEREZ, Respondent.

v.COLUMBUS MANAGEMENT SYSTEMS, INC., Appellant.

Commissioner of Labor, Respondent.

533931

Supreme Court, Appellate Division, Third Department, New York.

Calendar Date: November 18, 2022

Decided and Entered: December 15, 2022

Peter Fidopiastis, Glens Falls, for appellant.

David E. Woodin, Catskill, for Rodrigo S. Perez, respondent.

Letitia James, Attorney General, New York City (Linda D. Joseph of counsel), for respondent.

Before: Egan Jr., J.P., Clark, Pritzker, Ceresia and Fisher, JJ.

MEMORANDUM AND ORDER

Fisher, J. Appeals from two decisions of the Unemployment Insurance Appeal Board, filed February 26, 2021, which, upon resettlement, ruled, among other things, that Columbus Management Systems, Inc. was liable for additional unemployment insurance contributions on remuneration paid to claimant and others similarly situated.

Columbus Management Systems, Inc. (hereinafter CMS) is a logistics company that brokers delivery services for clients in the financial, pharmaceutical and food industries. Claimant provided delivery services through CMS to one of its clients from 2015 through 2018 and, thereafter, applied for unemployment insurance benefits. The Department of Labor initially ruled that claimant was an employee of CMS for unemployment insurance purposes and that CMS was liable for additional unemployment insurance contributions on remuneration paid to claimant and others similarly situated. CMS appealed and, following a hearing, the Administrative Law Judge, in two decisions, sustained CMS's objection, found claimant was an independent contractor and overruled the initial determination. Upon administrative appeal, the Unemployment Insurance Appeal Board, in two decisions filed February 26, 2021, reversed the ALJ's decisions and ruled, among other things, that CMS was liable for additional unemployment insurance contributions on remuneration paid to claimant and those similarly situated, as employees. CMS appeals.

We affirm. "Whether an employment relationship exists within the meaning of the unemployment insurance law is a question of fact, no one factor is determinative and the determination of the Board, if supported by substantial evidence on the record as a whole, is beyond further judicial review even though there is evidence in the record that would have supported a contrary conclusion" ( Matter of Legros [Northeast Logistics, Inc.-Commissioner of Labor], 205 A.D.3d 1245, 1246, 169 N.Y.S.3d 372 [3d Dept. 2022] [internal quotation marks and citations omitted]). "Substantial evidence is a minimal standard requiring less than a preponderance of the evidence. As such, if the evidence reasonably supports the Board's choice, we may not interpose our judgment to reach a contrary conclusion" ( Matter of Vega [Postmates Inc.-Commissioner of Labor], 35 N.Y.3d 131, 136–137, 125 N.Y.S.3d 640, 149 N.E.3d 401 [2020] [internal quotation marks, citations and brackets omitted]; accord Matter of Relay Express Inc. [Commissioner of Labor], 204 A.D.3d 1265, 1266, 167 N.Y.S.3d 587 [3d Dept. 2022] ; Matter of Quesada [Columbus Mgt. Sys., Inc.-Commissioner of Labor], 198 A.D.3d 1036, 1036–1037, 155 N.Y.S.3d 456 [3d Dept. 2021] ).

The record reflects that CMS engaged in a screening process and that claimant was required to provide a copy of his driver's license, vehicle registration and insurance, as well as submit to a background check performed by a third-party administrator. CMS required claimant to install an application on his cell phone in order to deliver payroll checks and provided instructions on how to access and...