Truesdale

Licensed cosmetologist Kenneth Truesdale, who had undergone one laminectomy in 1977, reinjured his lower back in November 1983 allegedly while lifting a five-gallon bottle of water at Spectrum Plus, the beauty shop where he worked. He subsequently underwent a second laminectomy.

Claiming Truesdale was an independent contractor, the corporate owner of Spectrum Plus denied he was entitled to workers’ compensation benefits. The workers’ compensation judge agreed, and in a split decision the Workers’ Compensation Appeals Board denied Truesdale’s petition for reconsideration. We annul the order. Notwithstanding the factual findings of the workers’ compensation judge, the record discloses Truesdale’s status was that of an employee as a matter of law.

I

The undisputed evidence was as follows: Truesdale, who had owned his own shop for fifteen years, began working at Spectrum Plus in late 1982. In early 1983, USA Industries purchased the shop. Don Logan, the majority shareholder, presented Truesdale with an “independent contractor” agreement prepared by his attorney. It provided Truesdale would be paid 65 percent of the revenues received by the shop for his work and for…