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Administrative Law Keyed to Mawshaw
National Labor Relations Board v. Hearst
Citation:
322 U.S. 111 (1944)Facts
The case involved four Los Angeles newspaper publishers (Los Angeles Times, Los Angeles Examiner, Los Angeles Evening Herald and Express, and the News) who distributed their papers through various channels, including newsboys selling on city streets. The newsboys at issue were full-time vendors selling at established locations or “spots,” typically mature men dependent on their sales for livelihood. The publishers exercised significant control over the newsboys’ working conditions: they assigned selling locations, supervised hours and conduct, provided sales equipment, and effectively fixed compensation through setting buying and selling prices. District managers supervised the newsboys, enforced rules, and maintained discipline. The newsboys received their papers on credit, paid for those sold, and returned unsold copies. The publishers argued these newsboys were independent contractors because they assumed certain entrepreneurial risks, could hire assistants, and sold other publications. The NLRB found that the economic realities of the relationship made the newsboys employees under the Act, but the Circuit Court of Appeals disagreed, applying common law standards.
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