Saturday, March 17, 2012

Member of L.L.C. not FLSA employer

The Fifth Circuit in Gray v. Powers becomes the first federal circuit to squarely address the liability of an individual member of an L.L.C. for FLSA wage claims of an employee of the L.L.C. The court rejected liability based solely on membership status and affirmed that operational control by the member is required to impose liability. The Court noted that it employs the economic reality standard for assessing operational control, and in this case, no reasonable jury could have concluded the Defendant possessed the power to hire and fire, ability to supervise, power to set wages, and/or maintained employment records.