In Re the Appeal of Century Metalcraft Corp.
Hawaii Supreme Court · 1957-01-15 · cited 5×
The case concerned whether Century Metalcraft Corporation owed additional unemployment compensation contributions under Hawaii's Employment Security Law on commissions paid to its house-to-house sales distributors during 1948-1950. The board of review and tax appeal court ruled for the taxpayer that the distributors were not in employment, but the Supreme Court reversed on appeal by the commission. The court examined both the distributor contract and actual operations, finding that the company provided training, assigned distributors to divisions, handled messages, and maintained oversight through managers sufficient to establish an employment relationship despite contract disclaimers of control. It therefore held the commissions subject to contributions as wages for services performed under contract of hire.