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factor supported an employer-employee relationship. She relied
on the following facts to make her determination: (1) Petitioner
provided a worker’s manual to some instructors; (2) Ms. Lopez
held meetings with the instructors; and (3) petitioner required
the instructors to dress appropriately and not play obscene
music. The examining agent found petitioner had financial
control over the instructors since it had a substantial
investment in the studio and equipment, and the instructors were
remunerated on the basis of either an hourly rate or a percentage
of tuition fees. Regarding the relationship of petitioner and
its instructors, there were no written contracts and the parties
verbally agreed to the relationship as independent contractors,
but petitioner could terminate the working relationship. There
is, however, no evidence that any of the instructors were
terminated. The examining agent likewise determined petitioner
could not benefit from section 530 relief since it did not
establish a reasonable basis for treatment of its instructors as
independent contractors.
Our review of the examining agent’s analysis demonstrates
that she failed to consider many facts contradicting her
conclusions, failed to consider the facts mitigating an inference
4(...continued)
three factors, overwhelmingly indicate petitioner’s instructors
were independent contractors. We believe the three-factor
approach the examining agent used overly generalized the common
law factors.
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