Black v. Employee Solutions, Inc.

725 N.E.2d 138 (2000)

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Black v. Employee Solutions, Inc.

Indiana Court of Appeals
725 N.E.2d 138 (2000)

Facts

Central States Xpress, Inc. (CSX), a trucking company, entered into an employee-leasing agreement with Employee Solutions, Inc. (ESI) (defendant). Pursuant to the agreement, ESI hired all of CSX’s employees and leased them back to CSX. The agreement stated that ESI was the employer of all personnel working for CSX. ESI performed various employment-related functions, including processing and issuing the CSX payroll. ESI was located several hundred miles away from CSX and overnighted the payroll checks to CSX for distribution. CSX was supposed to reimburse ESI for the payroll and pay a service fee, but it failed to do so. In 1996, CSX ceased operating and filed for bankruptcy, and ESI terminated the agreement. In 1998, a group of employees (employees) (plaintiffs) filed suit against ESI for unpaid wages under state law, alleging that ESI was their employer. The trial court entered summary judgment for ESI, and the employees appealed.

Rule of Law

Issue

Holding and Reasoning (Najam, J.)

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