Employment law pop quiz

Can a wage-earning hotel manager be an "employer" subject to individual liability under the Fair Labor Standards Act (FLSA)?

Are you surprised that the answer is "Yes"?

A hotel's front desk clerk sued the hotel and the manager, claiming he wasn't paid the minimum wage under FLSA. The manager pushed back, saying he was not an "employer" under the FLSA, but the 11th Circuit held that he was an employer. Spears v. Bay Inn & Suites (11th Cir 06/20/2024): https://media.ca11.uscourts.gov/opinions/pub/files/202213376.pdf

The manager argued that he cannot be an employer under the FLSA because he is a wage-earning employee and not an owner of the limited liability company that owned the hotels where the clerk worked. But the court noted that the manager is involved in the day-to-day operations of the company: he lives at one of the properties and supervised the clerk's daily job activities, and he testified that he oversaw things "day-to-day." He gave the clerk tasks and set the clerk's work schedule. He had control over the company’s finances in a way that other company employees did not. He was the only employee other than his father who could sign paychecks.

Thus, the manager is an "employer," defined as "any person acting directly or indirectly in the interest of an employer in relation to an employee."

Your results may vary. If you have this issue, consult a good employment lawyer.
(Not me, I'm an arbitrator.)