James E. Anderson and Cheryl J. Latos - Page 15

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               b.  Pre-Section 3121(b)(20) Classification of Fishing Boat             
               Under the Federal Insurance Contributions Act (FICA) and               
          Federal Unemployment Tax Act (FUTA), the term “employee” includes           
          “any individual who, under the usual common law rules applicable            
          in determining the employer-employee relationship, has the status           
          of an employee”.  Secs. 3111, 3121(d)(2), 3301, 3306(i).                    
               To determine whether fishing boat workers were employees or            
          independent contractors, courts considered the facts and                    
          circumstances of each boat owner/worker relationship and relied             
          on a multiplicity of factors.  See Enochs v. Williams Packing &             
          Navigation Co., 370 U.S. 1, 3 (1962); see also secs.                        
          31.3121(d)-1(c)(2), 31.3306(i)-1(b), 31.3401(c)-1(b), Employment            
          Tax Regs.  The multifactor facts and circumstances analysis and             
          disagreement among the courts over the application of common law            
          or maritime law to determine the employment status of fishing               
          boat workers led to inconsistent results,10 which made it                   
          difficult for boat owners to predict and determine whether their            
          workers would be held to be independent contractors or employees.           

               10See Enochs v. Williams Packing & Navigation Co., 370 U.S.            
          1 (1962) (holding fishermen were employees); United States v.               
          Crawford Packing Co., 330 F.2d 194, 196 (5th Cir. 1964) (holding            
          fishermen were not employees); Cape Shore Fish Co. v. United                
          States, supra (holding fishermen were employees; United States v.           
          W.M. Webb, Inc., 402 F.2d 956 (5th Cir. 1968) (holding fishermen            
          were not employees), revd. 397 U.S. 179 (1970).                             

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