State, Dept. of Public Welfare v. Saville

This appeal involves the question of whether persons retained by the former Nebraska Department of Public Welfare (Welfare), now the Department of Social Services, pursuant to a service provider program administered by Welfare in accordance with 42 U.S.C. § 1397 (1982), are “employees” within the meaning of Neb. Rev. Stat. § 48-604 (Reissue 1984). If the individuals are employees, Welfare is required to make contributions for unemployment insurance benefits on behalf of them. If they are independent contractors, however, they are exempt from the coverage of the Employment Security Law, Neb.…