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Report Link As Corporate Bankruptcies Rise, So Do Lawsuits Against Managers.Baker, Donelson, Bearman, Caldwell & Berkowitz, PC - September 23, 2009 In today's difficult economic climate, a growing number of companies have been forced to consider or even file for bankruptcy. Such filings may result in a stay of legal claims against the company, including those brought by current or former employees under the Fair Labor Standards Act (FLSA). But according to the Ninth Circuit, a company's filing for bankruptcy does not protect its individual executives and managers from potential liability under the FLSA. Report Link Federal Appeals Court Finds Hospital as Joint Employer Liable for Temp's FLSA Overtime PayJackson Lewis LLP - August 25, 2008 A hospital was a joint employer of a contract worker assigned to it by three different temporary agencies, and therefore liable to the employee under the Fair Labor Standards Act for unpaid overtime compensation, a federal appeals court in New York has ruled. Barfield v. N.Y. City Health & Hosp. Corp., No. 06-4137-cv (2d Cir. Aug. 8, 2008). The Second Circuit Court of Appeals made the determination based on the “economic realities test,” citing Department of Labor opinion letters supporting that conclusion. That finding resulted in affirmance of summary judgment, an award of compensatory and liquidated damages, and attorney’s fees and costs to the employee. Report Link You Need to Understand the Fair Labor Standards Act Part 3 - Are You a Joint Employer?Baker, Donelson, Bearman, Caldwell & Berkowitz, PC - June 16, 2006 General contractors typically use subcontractors to perform various aspects of the project, and some subcontractors also use subcontracted labor. In these situations, you may be liable for your subcontractors' violations of the FLSA. Everyone typically accepts that a general contractor supervises and may even ensure a subcontractor's quality of work: the owner (or architect) first looks to the general contractor, who then directs the subcontractor to fix the problem or coordinate the repair. Be aware, though, that when the subcontractor's problem is not related to its work but, for example, its payment of wages, the FLSA may apply, and you may be liable.
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