Supreme Court of the United States

Clackamas Gastroenterology Associates, P. C. v. Wells

April 22, 2003538 U.S. 440

Summary

The Court, in an opinion by Justice Stevens joined by Chief Justice Rehnquist and Justices O'Connor, Scalia, Kennedy, Souter, and Thomas, held that common-law control principles govern whether physician-shareholders and directors of a professional corporation count as employees toward the ADA's 15-employee threshold. The Court endorsed six nonexclusive EEOC factors, rejected categorical reliance on corporate form or analogy to partners, and reversed and remanded without conclusively determining the physicians' status. Justice Ginsburg, joined by Justice Breyer, dissented. She would count the physicians as employees and affirm, emphasizing their work for the separate corporate entity, their employment arrangements, and the consequences of excluding ordinary workers from ADA protection.

Holding

  • Determining whether shareholder-directors are employees under the ADA.. Common-law agency principles, with control as the principal guidepost, determine whether shareholder-directors are employees. Corporate form, ownership titles, and employment agreements are not independently dispositive; all incidents of the relationship must be considered.

Docket 01-1435

Cited authorities

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