McGowan v. Lazeroff

The only question involved in this appeal is whether salesmen engaged by the taxpayer-appellee to make house-to-house sales of the appellee’s merchandise were “employees” of the appellee and as such subject to the Social Security Act, 42 U.S. C.A. § 301 et seq. The only compensation of the salesmen was on a commission basis. Under the prevailing arrangement they furnished their own transportation and were completely free to solicit sales when, where and how they pleased. The trial judge held that these salesmen were not employees but independent contractors, re lying largely upon Radio City…