The definition of an “employer” under the FLSA is, like a number of FLSA provisions, not well defined, as set forth in a long and thoughtful opinion from Judge Manish S. Shah of the Northern District of Illinois. Schneider v. Cornerstone Pints, Inc., 2015 U.S. Dist. LEXIS 166993 (N.D. Ill. Dec. 1, 2015). However,
individual liability
Utah’s Highest Court Finds LLC Managers Were Not Employers Under State Wage Law
By Noel P. Tripp on
Posted in Litigation, Utah
When small entrepreneurial ventures collapse, disputes sometimes arise regarding who constituted an “employee” of the business and whether they were paid proper wages. As the venture has failed, the issue of individual liability often is raised. In a new decision, Utah’s highest court clarifies that Managers of a limited liability company are not liable for…
Brooklyn Federal Court Rejects Allegation That Not-For-Profit Board President Was An Employer
By Noel P. Tripp on
Posted in Coverage
Many courts, including the Court of Appeals for the Second Circuit, have ruled that under certain circumstances an individual can be a statutory “employer” under the Fair Labor Standards Act, liable for minimum or overtime wages usually along with a corporate entity. The scope of such potential liability and the precise formulation of the…
Fifth Circuit Finds Franchisor Was Not Employer Under Economic Realities Test
By Noel P. Tripp on
Posted in Uncategorized
The judicially-devised “economic realities” test is designed to determine whether an individual is liable as an “employer” under the FLSA, typically in addition to a corporate entity. For the second time in the past few years, the Court of Appeals for the Fifth Circuit has ruled that a franchisor was not the “employer of an…
Supreme Court Declines Catsimatidis’ Invitation To Review FLSA Liability
By Noel P. Tripp on
Posted in Coverage, New York State
Though the high court recently has accepted other petitions for certiorari on FLSA issues, today the Court declined Gristede’s owner and former NYC mayoral candidate John Catsimatidis’ request that the Court take up his case and review the imposition of individual liability imposed by the Second Circuit. Catsimatidis v. Irizarry, 2014 U.S.…
Maine Judge Agrees with Colleague: No Individual Liability Under Maine Wage-and-Hour Law
By Noel P. Tripp on
While the definition of employer under the FLSA is broad, as the Court of Appeals for the First Circuit (encompassing Maine among other states) has noted, state law is not always consistent, as highlighted by a new federal court decision from Maine. Saunders v. Getchell Agency, 2014 U.S. Dist. LEXIS 16728 (D. Me. Feb.…
Massachusetts Supreme Judicial Court Issues Employee-Friendly Decisions
By Noel P. Tripp on
Posted in Coverage, Massachusetts
In two decisions issued this spring, the Supreme Judicial Court of Massachusetts, reversed decisions issued by Massachusetts lower courts and broadly interpreted the scope of Massachusetts wage law with respect to its extra-territorial reach and potential individual liability for violations. Taylor v. Eastern Connection Operating, Inc., 465 Mass. 191 (Mass. 2013); Cook v. Patient …
Second Circuit Finds Gristede’s Owner to Be Individually Liable “Employer” Under FLSA
By Noel P. Tripp on
Reviewing a district court decision issued two years ago, the United States Court of Appeals for the Second Circuit has affirmed a ruling finding John Catsimatidis, the CEO and owner of New York-area grocery chain Gristede’s (and a New York Mayoral Candidate), individually liable for wages under the FLSA based on the “economic realities&rdquo…
Court Holds Minority Owner of Construction Business Not Employer Under FLSA
By Noel P. Tripp on
Posted in Litigation
FLSA litigation against medium-sized businesses continues, and a common tactic in such cases is to assert that one or more owners or managers of the business is the plaintiff’s "employer" under the statute, and thus individually liable for the allegedly unpaid minimum wage and/or overtime. See generally Herman v. RSR Sec. Servs., Ltd., 172…
SDNY – Executives Cannot Claim Unpaid Wages Under New York Labor Law, And Individual Liability Under Contract Claims Is Limited
By Noel P. Tripp on
Posted in New York State
Separated executives often assert wage claims following cessation of employment and big dollars are usually at issue. Important questions then arise, including principally: 1) whether the executive can assert a claim under the New York Labor Law; and, 2) just as importantly, who is responsible for any monies owed. A new decision issued by recently-appointed Judge Paul…