Lori Chavez-DeRemer v. Alpha & Omega USA, Inc.
23-3170
8th Cir.Apr 14, 2025Background
- Alpha & Omega USA, Inc. d/b/a Travelon Transportation, provides non-emergency transportation in the Minneapolis-St. Paul area and hired drivers whose employment status (employee vs. independent contractor) was disputed.
- The Secretary of Labor sued Travelon, alleging violations of the Fair Labor Standards Act (FLSA) for failure to pay minimum wage, overtime, and inadequate record-keeping.
- Initially, the district court granted summary judgment in favor of the Secretary, classifying drivers as employees and awarding $254,628.20 in back wages and liquidated damages.
- The Eighth Circuit reversed and remanded for trial, citing unresolved material factual disputes regarding the employment relationship under the "economic realities" test.
- After a limited trial focusing on specific economic realities test factors, the jury found for the Secretary, and the district court imposed the same damages as before.
- Travelon appealed, challenging the trial's scope, jury instructions, damages calculations, and denial of various post-trial motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Limitation of trial scope | Only disputed factors under the economic realities test should go to the jury | Jury should decide all economic realities factors and related liability | District court properly limited scope to disputed factors per mandate |
| Sufficiency of evidence for jury verdict | Substantial evidence supported jury's findings on disputed factors | Insufficient evidence supported verdict; verdict against weight of evidence | Ample evidence supported verdict; district court properly denied Rule 50(b)/new trial |
| Jury instructions on control factor | Proper instruction focused only on degree of control, not reasons for control | Instructions should address why company exerted control | Instructions were not legally incorrect; no probable effect on verdict |
| Opportunity to contest liquidated damages | State findings irrelevant; summary judgment already addressed suitability | Should have been allowed to present additional evidence on good faith | No miscarriage of justice; summary judgment record sufficient to address issue |
Key Cases Cited
- Walsh v. Alpha & Omega USA, Inc., 39 F.4th 1078 (8th Cir. 2022) (initial appeal identifying genuine disputes of fact under FLSA employment relationship)
- United States v. Castellanos, 608 F.3d 1010 (8th Cir. 2010) (law of the case and mandate rule on remand)
- In re Tri-State Fin., LLC, 885 F.3d 528 (8th Cir. 2018) (scope of appellate mandate and district court discretion)
- Lincoln Composites, Inc. v. Firetrace USA, LLC, 825 F.3d 453 (8th Cir. 2016) (standard for reviewing jury instructions)
