Recently in Rollins v. Rollins Trucking, LLC, 2016 U.S. Dist. LEXIS 1492 (D. Md. Jan. 7, 2016), the Maryland federal court said that bosses and owners possibly could be personally liable for wages owed to employees.
The federal Fair Labor Standards Act (FLSA) broadly defines the term “employer” to include “any person acting directly or indirectly in the interest of an employer in relation to an employee.” The Maryland Wage and Hour Law (MWHL), the state equivalent of the FLSA, has an equally broad definition of employer.
To determine whether an individual qualifies as an employer under both statutes, courts in Maryland utilize the “economic realities test.” Under this test, an employer is someone who “(1) has the authority to hire and fire employees; (2) supervises and controls work schedules or employment conditions; (3) determines the rate and method of payment; and (4) maintains employment records.”
The MWPCL defines employer as “any person who employs an individual in the State or a successor of the person.” (Md. Code Ann., Lab. & Empl. § 3-501(b)). Although this definition is narrower, the MWPCL has a broad definition of the term employ: “To engage an individual to work,” including “allowing an individual to work” and “instructing an individual to be present at a work site.” (Md. Code Ann., Lab. & Empl. § 3-101(c)).
Based on the definition of “employ,” the district court held that the same economic-realities test is used to determine which individuals qualify as an employer under all three wage statutes.
This is important for employees in Maryland because it means individual owners and bosses also can potentially be held liable for unpaid wages, including overtime wages. Furthermore, the MWPCL, unlike the FLSA and MWHL, allows for recovery of up to three times the amount of damages owed.
If you think you may be owed wages or your employer has failed to pay you overtime the attorneys at Lebau & Neuworth may be able to help because we are experienced in litigating wage cases and dealing with complex issues regarding individual employer liability. For more information, contact Lebau & Neuworth at (410) 296-3030 or lebauneuworth.com/contact-us.
