SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-1001-94T5
JOAN P. KELLY,
Plaintiff-Appellant,
v.
GERIATRIC AND MEDICAL SERVICES,
INC. t/a COOPER RIVER CONVALESCENT
CENTER,
Defendant-Respondent.
_____________________________________________
Argued January 31, 1996 - Decided February 29, 1996
Before Judges Shebell, Wallace and Newman.
On appeal from the Superior Court of New
Jersey, Law Division, Camden County.
Jaffa Stein argued the cause for appellant
(Tomar, Simonoff, Adourian & O'Brien, attorneys;
Franklin P. Solomon, on the brief).
Francis E. Schachtele argued the cause for
respondent (Blejwas, Knapp & Schachtele,
attorneys; Mr. Schachtele, on the brief).
The opinion of the court was delivered by
SHEBELL, P.J.A.D.
Plaintiff, Joan P. Kelly, appeals from an order granting summary judgment to defendant, Geriatric and Medical Services, Inc., t/a Cooper River Convalescent Center (CRCC), dismissing her personal-injury negligence complaint. The Law Division judge ruled that as a matter of law, she was a "special employee" of CRCC and, therefore, barred from bringing a tort action against
her "special employer" by N.J.S.A. 34:15-8 of the Workers'
Compensation Act. We affirm.
Plaintiff, a licensed practical nurse (LPN), was injured on
January 16, 1991, when she slipped and fell on a wet floor while
working at CRCC's health care facility. At the time, plaintiff
was employed by Today's Staffing Services, Inc. (TSI), a labor
services company in the business of supplying skilled nursing
personnel to health care facilities on a temporary basis.
Plaintiff's claim for workers' compensation benefits through the
insurance carrier for TSI was paid without contribution from
CRCC.
On November 12, 1992, plaintiff filed her complaint against
CRCC, alleging that, on January 16, 1991, she was "employed by
TSI," and "in the course of her employment with TSI as a nurse,"
she slipped and fell on a freshly mopped, wet floor "in the
course of her . . . work at the Cooper River Convalescent
Center." Plaintiff alleged that as a "business invitee" at
defendant's health care facility, CRCC had a duty to provide her
with a "safe place to work," which it negligently breached by
exposing her to "unsafe conditions during the course of her
employment." Among other defenses asserted, was that at the time
of her accident, plaintiff was an "employee of this defendant"
and, therefore, her sole and exclusive remedy against it was
"under the New Jersey Workers' Compensation Law."
After completion of discovery, CRCC moved for summary
judgment. CRCC acknowledged that plaintiff was an "employee ...
of TSI," but argued that because plaintiff was an "agency nurse"
obtained by defendant from "a temporary personnel agency," CRCC
was her "special employer" and plaintiff was, therefore, "barred
by the workers' compensation statute's surrender of other
remedies provision, N.J.S.A. 34:15-8." Plaintiff responded that
"at no time did she consider herself an employee of CRCC," and
that at the time of her accident, she was "employed by [TSI], a
nursing agency," was an "employee of [TSI] only," and was "not
the special or borrowed employee of [CRCC]."
On September 23, 1994, the motion judge held that plaintiff
was a "special employee" of CRCC and, therefore, "the workers'
compensation bar is applicable." He, therefore, entered an order
granting summary judgment in favor of CRCC and dismissed
plaintiff's complaint.
The facts are not in great dispute. For several years,
plaintiff had been contemporaneously employed by TSI and several
other temporary nurse staffing agencies, and had been temporarily
assigned to work as an "agency nurse" at various health care
facilities, including defendant's. Plaintiff had always worked
as an agency nurse because she liked the scheduling flexibility
it provided, which was not available to a "staff nurse" regularly
employed on the payroll of a health care facility. It was
plaintiff's "personal preference to be an agency nurse rather
than a staff nurse."
Before plaintiff's fall, defendant would from time to time
decide that all nurses working at its various health care
facilities "should go staff," that is, "should ... become
employees directly of [CRCC]." Defendant had at these times
"offered plaintiff a position ... to work on staff." Plaintiff
testified: "when that happened, I refused to join staff and I
would go work somewhere else," and "then . . . the furor would
die down and I would go back" to defendant's facility "[t]hrough
an agency."
The applicable, though not exclusive, legal criteria to
establish a special employer-special employee relationship
involves the following fact-sensitive five-pronged test:
(1) the employee has made a contract of
hire, express or implied, with the special employer;
(2) the work being done by the employee is
essentially that of the special employer;
(3) the special employer has the right to
control the details of the work;
(4) the special employer pays the employee's
wages; and
(5) the special employer has the power to
hire, discharge or recall the employee.
See Antheunisse v. Tiffany & Co., Inc.,
229 N.J. Super. 399, 402-03 (App. Div. 1988), certif. denied,
115 N.J. 59 (1989); see Volb
v. G.E. Capital Corp.,
139 N.J. 110, 116 (1995); see also 1B
Larson, Workmen's Compensation Law, § 48.00 at 8-434 (1994).
CRCC urges that although plaintiff and defendant had no
"express contract of employment," an implied contract was entered
into under which plaintiff "accepted CRCC as her special
employer." CRCC reasons that the regular business activity of
plaintiff's general employer, TSI, was the placing of nurses in
temporary employment with employers such as CRCC. Therefore, it
argues, it was impossible for plaintiff to have been doing the
work of her general employer, TSI, while at CRCC, and thus, the
work she did at CRCC was that of her special employer.
Plaintiff does not dispute that the work she performed at
defendant's facility was essentially that of CRCC. She notes,
however, that the reverse side of the TSI written form, which
plaintiff and CRCC's staff supervisor had to fill out and sign to
confirm that plaintiff had worked at defendant's facility on her
assigned dates and shifts states:
Today's Staffing will supply staff personnel
to Client upon Client request. Personnel
working for Client pursuant to this Agreement
shall be considered employees of Today's
Staffing only. Today's Staffing shall be
responsible for payment of wages, withholding
of taxes and maintaining required insurance
coverages, including general and professional
liability insurance.
[Emphasis Added.]
On the issue of control, CRCC's assistant administrator
testified at her deposition that "once they [agency nurses] go on
the floor they are working for us" and are subject to the same
"control" while working on the floor as one of CRCC's own staff
nurses vis-a-vis "what [has] to be done." Plaintiff agreed
generally with this proposition, but noted that as a skilled LPN,
no one had to tell her "what to do" vis-a-vis her duties as an
LPN working on the floor.
As to the factor of who paid the employee's wages, the payor
on all of plaintiff's paychecks was TSI. Plaintiff never
received a paycheck directly from CRCC, nor did she "receive any
benefits in terms of fringe benefits" when she worked as an
agency nurse at the facility. There is no evidence as to the
breakdown of the fee paid to the agency by CRCC, and no showing
that the fee is directly tied to plaintiff's wages plus a fixed
percentage for overhead. Defendant was never told what the
agency nurse received as pay from the agency.
CRCC could discharge an agency nurse only to the extent that
it could cause the nurse to be removed from the facility. If an
agency nurse "performed badly," the nurse's agency would be told
by CRCC to "not send that person to this facility" in the future.
Defendant maintained a "do not call list," and any agency nurse
who did not perform professionally could be placed on the "list
of do not calls," and would not be allowed back regardless of
what agency attempted to send the nurse.
Given this factual background, we apply the law. New Jersey
"allows an employee, for the purpose of workers' compensation to
have two employers, both of whom may be liable in [workers']
compensation." Antheunisse, supra, 229 N.J. Super. at 402. In
such circumstances, the right to recover workers' compensation
benefits serves to bar the employee from maintaining a tort
action against either employer. See Ibid.; Murin v. Frapaul
Const. Co.,
240 N.J. Super. 600, 606-07 (App. Div. 1990).
A critical criterion in determining whether special
employment exists is the requirement of a contract, express or
implied, between the employee and the special employer. See
Antheunisse, supra, 229 N.J. Super. at 401-05; Chickachop v.
Manpower, Inc.,
84 N.J. Super. 129, 137 (Law Div. 1964); see also
Larson, supra, § 48.23 at 8-524, 8-528, 8-532 ("employers
obtaining workers from the kind of labor service typified by Manpower, Inc., have usually, but not invariably, been held to
assume the status of special employer").
A contract of employment "may be express or implied." White
v. Atlantic City Press,
64 N.J. 128, 133 (1973). A hiring contract does "not require formality." Gomez v. Federal Stevedoring
Co., Inc.,
5 N.J. Super. 100, 103 (App. Div. 1949). While assent
to the offer of employment "must be manifested in order to be legally effective, it need not be expressed in words." Ibid. The
necessary assent may be expressed in words, or it may be "implied
from conduct without words." Ibid. See Deskovick v. Porzio,
78 N.J. Super. 82, 86-87 (App. Div. 1963) ("contract implied in fact
calls for the establishment of a consensual understanding," which
may be "inferable from the circumstances under which one
furnishes services"). In Antheunisse, supra, 229 N.J. Super. at
404, we pointed out that "plaintiff knew that [the personnel
agency] would hire her out to various employers and accepted the
terms of her employment with defendant." We also noted that
plaintiff "had the opportunity to refuse the job without fearing
any reprisal from the agency." Ibid. Therefore, we found that
plaintiff had "impliedly contracted with defendant when she
reported voluntarily to work" and proceeded to "submit to
defendant's direction and control." Ibid.
Plaintiff relies on the reasoning in M.J. Daly Co. v.
Varney,
695 S.W.2d 400 (Ky. 1985) to support her contention that
no implied contract arose. There, the plaintiff was injured on
the premises of defendant's chemical distributing plant. 695
S.W.
2d at 401. At the time of his accident, plaintiff was
employed on the payroll of a labor service company, and defendant
had contracted with Personnel Pool for his services. Ibid. The
Kentucky Supreme Court noted that plaintiff "had been offered
employment by [defendant]" but, "preferring to remain an employee
of Personnel Pool on assignment to [defendant]," plaintiff had
"expressly refused status as an employee of [defendant] so that
he could maintain his status as an employee of Personnel Pool."
Id. at 401-02. Because plaintiff had expressly "rejected
employment status with the special employer," the court held that
plaintiff had "retained the right to sue M.J. Daly & Co." Id. at
401, 403.
We reject the reasoning in Daly, supra, in favor of that
supporting our holding in Pacenti v. Hoffman-LaRoche, Inc.,
245 N.J. Super. 188 (App. Div. 1991). In Pacenti, supra, plaintiff
was a "direct employee of the Johansen Company" when he slipped
and fell while working as a millwright on the premises of
Hoffman-LaRoche, Inc. Id. at 189. The Johansen Company had a
"contract with Hoffman-LaRoche to supply maintenance personnel,"
which "specifically provided that the personnel were not direct
employees of Hoffman-LaRoche." Ibid. Plaintiff argued that
based on the "express provisions in the contract between Johansen
and Hoffman-LaRoche stating that the employee shall remain solely
the employee of Johansen," no special-employment could exist.
Id. at 192. We, however, pointed out that the "employment
agreement necessary under the Larson tests involves the limited
subject of supervision for workers' compensation purposes" and,
therefore, "the focus is not upon the relationship between the
two corporations, but rather between plaintiff and each of his
potential employers." Ibid.
We apply the holdings of Pacenti and Antheunisse and
conclude that plaintiff's voluntary acceptance of work at CRCC
gave rise to an implied contract of employment. We add that the
element of control, as hereinafter discussed, was similarly
voluntarily accepted by plaintiff when she complied with
assignments and supervision at defendant's facility.
Plaintiff notes that generally, cases dealing with special
employees have dealt with non-professionals. Plaintiff urges
that, because she was an "independent skilled professional,"
defendant had "no right to control the details of Joan Kelly's
work." According to plaintiff:
She was required to exercise her discretion
and use her professional expertise in providing care to patients, dispensing prescribed
medication and monitoring patient's conditions. The details of the manner in which
she provided nursing care were entirely within her individual control, and CRCC had no
right to control those details.
Under the "right to control test," the actual exercise of
control is "not as determinative as the right of control itself,"
because, in many instances, "the expertise of an employee
precludes an employer from giving him any effective direction concerning the method he selects in carrying out his duties." Smith v. E.T.L. Enterprises, 155 N.J. Super. 343, 350 (App. Div. 1978); accord Santos v. Standard Havens, Inc., 225 N.J. Super. 16, 22 (App. Div. 1988); see Marcus v. Eastern Agric. Ass'n, Inc., 58 N.J. Super. 584, 597 (App. Div. 1959) (Conford, J.A.D., dissenting), rev'd on dissenting opinion, 32 N.J. 460 (1960) ("while some measure of control is essential to a finding of an employer-employee relationship," the requirement of control is "sufficiently met where its extent is commensurate with that degree of supervision which is necessary and appropriate, considering the type of work to be done and the capabilities of the particular person doing it"); see also Trauma Nurses, Inc. v. Board of Rev., N.J. Dept. of Labor, 242 N.J. Super. 135, 137, 140, 146-47 (App. Div. 1990) (a disability-benefits case involving "temporary nursing personnel" supplied to hospital by company in "business of supplying hospitals with nurses on a temporary basis;" we noted that, "once a nurse is placed, the hospital is in complete control of his or her activities," but also recognized "that nurses are professionals and that the details of their work are ordinarily not subject to close supervision"); see generally Nation v. Weiner, 701 P.2d 1222 (Ariz. Ct. App. 1985) (registered nurse, regularly assigned to a hospital by an agency, held to be lent employee; hospital was her special employer and entitled to immunity from negligence action under workers' compensation statute; contention that plaintiff's
status as a licensed professional nurse precluded finding of
special employee rejected).
It is pivotal to the present case that plaintiff, while
rejecting offers of direct employment with CRCC, accepted an
employment relationship at the convalescent center where her work
duties and job performances were assigned, directed and overseen
by CRCC's supervisor. Plaintiff's daily activities were
controlled by CRCC and there was an absence of any such control
by TSI. Though an LPN, plaintiff's assignments and the
evaluation of her performance were clearly under the day to day
control of CRCC. Notwithstanding the language of the writing
between TSI and CRCC, the right to direct the on-site work
assignments and to control that work lay with CRCC. See Thompson
v. Grumman Aerospace Corp.,
560 N.Y.S.2d 864 (App. Div. 1990).
No other manner of control would be acceptable as plaintiff's
performance as an LPN was integral and necessary to the conduct
of the business of the facility and its patients, and plaintiff
as a professional knew she was subject to CRCC's exclusive
control while on the job. See Abramson v. Long Beach Mem. Hosp.,
478 N.Y.S.2d 105 (App. Div. 1984); accord Riley v. Southwest
Marine, Inc.,
250 Cal. Rptr. 718 (Ct. App. 1988).
We do not find it of any moment that TSI actually paid
plaintiff's wages. The money used to pay her wages came
indirectly out of the fees paid by defendant for plaintiff's
services. See Antheunisse, supra, 229 N.J. Super. at 404-05;
Chickachop, supra, 84 N.J. Super. at 139. We have given little
weight to this factor in our finding of special employment. It
would have had greater importance, as an indicia of "special
employment," if the wages were paid directly by CRCC, or if the
fee paid to the agency was based on a percentage scale linked to
the employee's wages. In any event, this factor is not necessary
for a determination that a special employment relationship
exists. See Volb, supra, 139 N.J. at 116; Antheunisse, supra,
229 N.J. Super. at 403.
Regarding the fifth prong of the test, that is, "the power
[of the special employer] to fire, discharge or recall the
employee," CRCC had no power to decide whether plaintiff could
continue working out of TSI for other facilities, however, it had
full control over whether she would continue to work at CRCC and
indeed whether she would ever again work at any of its other
facilities. We find this to be the functional equivalent of the
power to discharge her.
The question of whether an employment relationship exists is
reserved for the trier of fact where there is a conflict in the
evidence or the inferences to be drawn from it. See Brill v.
Guardian Life Insurance Co.,
142 N.J. 520, 540-42 (1995). Here,
there is no such conflict and the question is one only of law,
properly resolved by summary judgment. It is apparent that
plaintiff was a special employee of CRCC at the time of her fall
and that she is thereby precluded from maintaining the present
action against her special employer.
Affirmed.