ALJ EAJA Decision in Pettengill Family Restoration, LLC, OSHRC Docket Nos. 23-1249, 23-1380, 23-1656 & 24-0353 (EAJA), Becomes a Final Order of the Commission.

Respondent was a construction company that specialized in framing panelized or “kit” houses. It was hired as a subcontractor for Framing Specialists, Inc., to assemble these houses. Framing Specialists would deliver the plans and materials for the kit houses to jobsites, and Respondent would provide workers who could assemble them.

On four separate occasions between January 11, 2023 and October 3, 2023, Compliance Safety and Health Officers (CSHOs) from the Occupational Safety and Health Administration (OSHA) observed safety violations at worksites where Respondent’s workers were assembling the kit houses. Each instance resulted in an inspection, and OSHA ultimately issued four Citations and Notifications of Penalty, alleging multiple serious and repeat-serious violations, with proposed penalties of $78,701, collectively. Each of those Citations identified Respondent as the employer of the workers onsite.

Respondent timely contested the Citations, arguing that it was not the employer of the workers, but rather, the workers were independent contractors. Following a trial, the Court issued a Decision and Order applying the employment factors laid out by the Supreme Court in Nationwide Mut. Ins. Co. v. Darden, 503 U.S. 318 (1992). The Court concluded that, on balance, most of the Darden factors counted in favor of the workers being independent contractors, not employees. Because the Secretary failed to meet her burden of proof, the Court vacated all four Citations. Then, as the prevailing party, Respondent filed the instant Application for Fees.