A and B, a brother and sister, had lived in the same household on a farm owned by B, since 1927. B maintained the farm and his sister, A, performed household duties including cooking for her brother, for which she received room and board in return.

A alleged that, beginning in July, 1956, her brother had begun to pay her $100 per month pursuant to an oral employment contract for the same household duties she had been previously providing in exchange for room and board. Her brother did not control the manner of her performing the household duties; she worked under her own control and discretion as she had done since 1927. She claimed that the $100 were social security wages pursuant to an employer-employee relationship.

However, under common-law principles, an employer-employee relationship is characterized by the employer’s right of control, not only as to the result to be accomplished, but as to the time and manner in which it is accomplished.

In several prior cases in which familial relationships were involved, the Courts had ruled that where services had previously been rendered without remuneration and there was no change in the method of operation after the alleged employment relationship began, that there was no bona fide employment relationship.

The payment of money from brother to sister, although a factor to be considered in determining whether or not an employment relationship existed, was not controlling.

It was held that there was no employment relationship and that, therefore, no social security wages had been paid.
See Social Security Ruling (SSR) 61-6.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.