By Payroll and Entitlements Editorial Staff
The court affirmed the Department’s decision finding that off-duty police officers who were directing traffic for a construction company were employees of company who was doing road construction. For purposes of unemployment insurance taxes, the company was the temporary employer because it assigned work to the off-duty officers and set the rate of pay. The court also found that the indemnity agreement and conditions agreement terms were not at issue, but the fact that the relationship was contractually based was important. The contract, which included the two agreements, described the company as the secondary employer of the police officers while they performed their traffic control duties. The court held that because of the statute and the clear language of the contract, the construction company was a secondary employer and responsible for paying the off-duty officers. Therefore, it also was responsible for paying unemployment insurance taxes (Joseph J. Albanese, Inc. v. Henning, Cal. Ct. of App. (Unpub. Op.), C078957, February 25, 2019).
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