Eleventh Circuit Rejects Joint Employer Argument in FLSA Case

A three-judge panel has summarily denied a request for rehearing by the plaintiffs in Ramon Valle et al. v. Ceres Environmental Services Inc. et al., case number 21-12020, U.S. Court of Appeals for the Eleventh Circuit. In Valle, six laborers were seeking unpaid overtime and wages under the Fair Labor Standards Act (FLSA) from two environmental response companies stemming from their work during Hurricane Michael. A panel of the Eleventh Circuit already had affirmed the federal district court’s decision finding that the companies were not the employers of the workers within the meaning of the FLSA.

The workers argued in favor of their petition for rehearing that the Eleventh Circuit panel had improperly applied the test outlined in Layton v. DHL Express (USA) Inc (11th Cir. 2012)  to determine if an individual is an employee of a company.

In this case, defendant Ceres contracted with Jackson County, FL, and subcontracted with defendant ERG to provide hurricane cleanup. ERG subcontracted with shell corporation AA & K Restoration Group, which provided work crews, including the plaintiffs, to support ERG workers. AA & K never contracted with Ceres, only providing invoices for workers to ERG. AA & K was also responsible for recruiting, negotiating pay rates, supplying equipment, and paying the work crew. Neither Ceres nor ERG supervised the workers, set pay rates, hired them, and terminated them. As a result, the Eleventh Circuit panel determined that AA & K was responsible for any unpaid wages owed to the plaintiffs under the FLSA.

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