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Bonilla v. Power Design Inc.
201 F. Supp. 3d 60
| D.D.C. | 2016
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Background

  • Plaintiff Isaac Bonilla worked as an electrical worker on a D.C. renovation project beginning in Nov. 2015 and alleges he and coworkers were denied overtime and misclassified as independent contractors.
  • Power Design (electrical subcontractor) directed work, supplied tools, and managed timesheets; DDK Electric (labor broker) handled paychecks and IRS forms.
  • Bonilla sued Power Design, DDK Electric, and Clark Construction (the general contractor) under the FLSA and multiple D.C. wage laws, asserting overtime, wage-payment, and misclassification claims.
  • Complaint pleads factual employer relationships with Power Design and DDK but only labels Clark as the “general contractor” without alleging the economic-reality factors showing Clark acted as Bonilla’s employer.
  • Bonilla also pled (separately) that Clark is vicariously liable for subcontractors’ wage violations under D.C.’s Wage Theft Prevention Amendment Act.
  • Clark moved to dismiss: (1) claims alleging it was Bonilla’s employer for failure to plead economic-reality facts, and (2) vicarious-liability claims based on a subcontract indemnity/contract provision it says relieves it of liability.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Clark Construction is Bonilla’s “employer” under FLSA and D.C. law Bonilla contends Clark’s role as general contractor supports inference of employer status Clark argues mere status as general contractor is insufficient; plaintiff must plead economic-reality factors Court: Dismissed employer-status claims against Clark for failure to plead economic-reality factors (hire/fire, control, pay method, records)
Whether Clark is vicariously liable for subcontractors’ wage violations under D.C. law despite its contract with Power Design Bonilla alleges Power Design and DDK were his employers and were Clark’s subcontractors; D.C. law makes general contractors jointly/severally liable for subcontractors’ wage violations Clark points to a contract indemnity/contract clause and emergency amendment language it says can relieve a general contractor from vicarious liability Court: Denied dismissal — under D.C. Wage Theft Prevention amendments Clark can be vicariously liable; the cited contract language is an indemnity, not a release from statutory vicarious liability

Key Cases Cited

  • Browning v. Clinton, 292 F.3d 235 (D.C. Cir. 2002) (Rule 12(b)(6) tests complaint sufficiency)
  • Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standard requires plausible factual allegations)
  • Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading standard)
  • Morrison v. Int’l Programs Consortium, Inc., 253 F.3d 5 (D.C. Cir. 2001) (economic-reality factors for FLSA employer status)
  • Luna-Reyes v. RFI Constr., LLC, 109 F. Supp. 3d 744 (M.D.N.C. 2015) (example where general contractor alleged employer status with detailed facts)
  • Mendoza v. Essential Quality Constr., Inc., 691 F. Supp. 2d 680 (E.D. La. 2010) (similar precedent regarding general contractors and employer status)
Read the full case

Case Details

Case Name: Bonilla v. Power Design Inc.
Court Name: District Court, District of Columbia
Date Published: Aug 22, 2016
Citation: 201 F. Supp. 3d 60
Docket Number: Civil Action No. 2016-0642
Court Abbreviation: D.D.C.