FAUSH v. TUESDAY MORNING, INC.
2:12-cv-07137
E.D. Pa.Jan 23, 2014Background
- Plaintiff Matthew Faush (a Labor Ready temporary worker) was assigned to work at a Tuesday Morning store for ten days in May 2011 and alleges he and other African‑American coworkers were terminated because of their race.
- Labor Ready (a staffing agency) and Tuesday Morning had a written Agreement and incorporated Terms and Conditions governing temporary workers; Labor Ready retained responsibility for hiring, paying wages, taxes, and workers' compensation.
- Labor Ready issued time cards, set pay rates, paid Faush, and did not provide Faush's SSN to Tuesday Morning; Tuesday Morning never paid wages, provided benefits, or entered into any employment contract with Faush.
- Tuesday Morning had contractual restrictions (via the Agreement) limiting use of temporary workers (e.g., no unattended premises, no operating machinery without permission).
- Plaintiff sued Tuesday Morning under Title VII, 42 U.S.C. § 1981, and the PHRA for racial discrimination; Tuesday Morning moved for summary judgment arguing it was not Faush’s employer and thus not liable.
- The court granted Tuesday Morning’s motion for summary judgment, holding Faush was not Tuesday Morning’s employee and therefore Title VII/PHRA/§1981 claims fail.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Tuesday Morning was Faush's employer for Title VII/PHRA | Apply the joint‑employer test (In re Enterprise) to find Tuesday Morning an employer | Use the Darden common‑law agency/master‑servant test; Tuesday Morning lacked control and did not employ/pay Faush | Tuesday Morning was not Faush's employer under Darden; summary judgment for defendant |
| Whether the joint‑employer/FLSA‑style test controls | Enterprise's joint‑employer analysis should govern employer status | Enterprise applies to FLSA (broad definition); Title VII is narrower so Darden controls | Court declined Enterprise test; Darden governs Title VII/PHRA analysis |
| Whether Faush has a § 1981 contractual relationship with Tuesday Morning | Faush alleges denial of benefits of a contractual relationship due to race | No contract existed between Faush and Tuesday Morning; § 1981 analyzed like Title VII here | § 1981 claim fails for same reason as Title VII (no employer/contract) |
| Whether summary judgment was appropriate given record evidence | Plaintiff contended joint‑employer theory; did not present facts sufficient to show Darden factors favor employer status | Tuesday Morning produced Agreement and evidence showing Labor Ready controlled hiring, pay, benefits, tax treatment, and assignment terms | Summary judgment appropriate: plaintiff failed to produce specific facts creating a genuine dispute on employer status |
Key Cases Cited
- Nationwide Mut. Ins. Co. v. Darden, 503 U.S. 318 (construing employer status under Title VII via common‑law agency/master‑servant factors)
- In re Enterprise Rent‑A‑Car Wage & Hour Emp't Practices Litig., 683 F.3d 462 (3d Cir.) (applies broad/joint‑employer analysis under the FLSA)
- Haybarger v. Lawrence Cnty. Adult Probation & Parole, 667 F.3d 408 (3d Cir. 2012) (noting Title VII defines "employer" more narrowly than FLSA/FMLA)
- Brown v. J. Kaz, Inc., 581 F.3d 175 (3d Cir. 2009) (PHRA and Title VII claims are interpreted coextensively for employer status)
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden allocation principles)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (summary judgment and required showing to defeat it)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 ("genuine issue" standard for summary judgment)
- Holtzman v. The World Book Co., Inc., 174 F. Supp. 2d 251 (E.D. Pa.) (§ 1981 claim dismissed where Title VII employer status fails)
