Labor Law-Independent Contractor Status-Extension of the Right of Control Test

Petitioner, a large independent oil company, owned a gasoline service station which it leased to an individual operator, reserving the right to determine certain aspects of the lessee’s operations. During the lease period, a majority of the station attendants signed union authorization cards, and the union requested a meeting with the lessee for the purpose of negotiating a contract. The lessee refused to negotiate, discharged the attendants, and hired replacements. The trial examiner found that petitioner, as an employer of his lessee, had violated section 8(a)(5) of the National Labor Relations Act by refusing to bargain. On appeal, held, affirmed. Under the “right of control” test, the petitioner is an employer of the lessee; as the employer, petitioner is responsible for the unfair labor practice of his employee and therefore must rehire the station attendants and pay their back wages. Site Oil Co., 137 N.L.R.B. 1274 (1962).