332 P.3d 415
Wash.2014Background
- Plaintiffs were night janitors in Puget Sound Fred Meyer stores, paid below minimum wage and overtime under Washington's MWA.
- They were not formally employed by Fred Meyer or Expert; Expert outsourced through second-tier service providers.
- Expert contracted with multiple second-tier providers; All Janitorial and All American Janitorial employed or managed workers for Fred Meyer stores.
- All Janitorial paid no overtime or minimum wage; workers earned $7.36-$7.75/hour while state minimum wage rose to $8.55.
- Shifts ran overnight with long hours, sometimes until 8:00 a.m. after store supervision signed off on daily work orders; replacements needed to take a shift.
- Trial court granted summary judgment dismissing joint-employment claims; Court of Appeals reversed; petitions for review followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Expert is a joint employer under the MWA. | Beckerres argued joint employment under Torres-Lopez framework. | Expert contends Bonnette factors control; no direct supervision or pay control. | Summary judgment improper; remand for Torres-Lopez factors analysis. |
| Whether Fred Meyer is a joint employer under the MWA. | Fred Meyer knew or benefited from misclassification and paid through intermediaries. | No direct control or employment relation; Bonnette factors insufficient. | Summary judgment improper; remand for full Torres-Lopez analysis. |
| Appropriate framework to assess joint employment under MWA. | Economic reality test with Torres-Lopez factors should govern; not limited Bonnette factors. | Bonnette factors are sufficient and controlling for joint employment here. | Court adopts Torres-Lopez framework; remand for complete factor evaluation. |
Key Cases Cited
- Bonnette v. California Health & Welfare Agency, 704 F.2d 1465 (9th Cir. 1983) (four factors guide joint employment inquiry)
- Torres-Lopez v. May, 111 F.3d 633 (9th Cir. 1997) (13-factor framework; economic realities test)
- Real v. Driscoll Strawberry Assocs., 603 F.2d 748 (9th Cir. 1979) (business relationships and investment considerations)
- Rutherford v. City of Millhaven, 331 U.S. 730 (1947) (focus on whole activity over isolated factors)
- Zheng v. Liberty Apparel Co., 355 F.3d 61 (2d Cir. 2003) (economic realities not a fixed scorecard)
- Moreau v. Air France, 356 F.3d 942 (9th Cir. 2003) (integral-factor approach to joint employment)
- Barfield v. N.Y. City Health & Hosp. Corp., 537 F.3d 132 (2d Cir. 2008) (recognizes complexity of joint employment standard)