Economic Realities Test: FLSA Employer
// Dallas, Texas, United States // Attorney Keith Clouse (Blog) // Keith Clouse
In a recent FLSA case, the Fifth Circuit Court of Appeals examined whether a franchisor was an employer under the Fair Labor Standards Act. In making that determination, the court utilized the economic realities test. Dallas employment law specialist Keith Clouse explains.
The FLSA applies only to an “employer”—any person acting directly or indirectly in the interest of an employer in relation to an employee. The purposes of the FLSA require courts to define “employer” in the FLSA context more broadly than the term would be interpreted in traditional common law applications.
To determine whether a person is an employer under the FLSA, a court must evaluate the multiple factors of the economic reality test. Under this test, a court evaluates whether the alleged employer: (1) possessed the power to hire or fire the employees; (2) supervised and controlled employee work schedules or conditions of employment; (3) determined the rate and method of payment; and (4) maintained employment records. A plaintiff does not need to establish each element.
This article is presented by Mr. Clouse and the Dallas employment lawyers at Clouse Dunn LLP. For inquiries or additional information about FLSA compliance issues, send an email to debra@clousedunn.com or call (214) 239-2705.
Contact Keith Clouse
KEITH A. CLOUSE
Clouse Dunn LLP
214.220.2722 214.220.3833 ( fax) keith@clousedunn.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
