Sole Owner and Employer?

Defendant employer appeals a decision finding than applicant was an employee.

In J-King Excavating, the defendant employer appealed a decision finding that the applicant was an employee. Mr. Ellis was the sole owner of J-King Excavating. In May 2022, he interviewed the applicant, hired her, and instructed her of her job duties. The applicant was provided with a truck, a company debit card, and tools required for her job. She was paid on an hourly basis without payroll or tax deductions. Mr. Ellis testified that he did not have employees, only independent contractors, and that he had an open-ended relationship with the applicant, but the job that she was hurt by was her last job with him. The defendants also argued that the applicant provided dusting and cleaning duties that were incidental to J-King’s business.

Mr. Ellis appealed this decision to the Arizona Court of Appeals (the Court) arguing that the control factor was applied inappropriately but did not offer any substantially different arguments than what was raised during the hearing process. The Court determined that the ALJ had applied the control-factor test correctly. It cited testimony from Mr. Ellis that the applicant was hurt on a Sunday when the business was closed. However, she was working at the request of Mr. Ellis for a project starting on Monday. This showed that Mr. Ellis had control over the applicant’s work hours, which further supported the employer-employee relationship.

J-King Excavating v. Indus. Comm'n of Arizona, No. 1 CA-IC-24-0025, 2025 WL 656346 (Ariz. Ct. App. Feb. 27, 2025).

Want to know more? Contact Megan Bornmann at mbornmann@pollartmiller.com


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