Supreme Court of the United States
Bartels, Doing Business as Crystal Ballroom v. Birmingham
June 23, 1947332 U.S. 126
Summary
The Court held that the band leader, not the dance‑hall operator, is the employer of the musicians for purposes of the Social Security Act, and that the Form B contract cannot be used to shift the tax liability to the operator. The decision reverses the Court of Appeals and affirms the district court. Justice Douglas dissented, arguing that the contract should be given its face value.
Holding
- Whether the band leader or the dance‑hall operator is the employer of the musicians under the Social Security Act. The band leader is the employer; the musicians are his employees, not the dance‑hall operator’s employees
- Whether the Form B contract can shift the employer‑tax liability from the band leader to the dance‑hall operator. The Form B contract does not shift liability; the Commissioner lacks authority to reassign the tax burden through such contracts
Docket NO. 731