Category Archives: LLC Cases 2012

December 2012 — Issue 62

LLC Cases: Gray v. Powers

673 F.3d 352 (5th Cir. 2012)

Nicholas Gray sued his employer, an LLC that owned a nightclub, and one of its owners, Michael Powers, for alleged violations of minimum wage standards under the Fair Labor Standards Act (FLSA). Gray alleged that Powers was personally liable with the LLC for the FLSA damages as an “employer” under the FLSA. The court applied the “economic reality” test to determine whether there was an employer/employee relationship between Powers and Gray. Under this test, the court considers whether the alleged employer: (1) possessed the power to hire and fire 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. Continue reading