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Lori Chavez-DeRemer v. Alpha & Omega USA, Inc.
23-3170
8th Cir.
Apr 14, 2025
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Background

  • 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)
Read the full case

Case Details

Case Name: Lori Chavez-DeRemer v. Alpha & Omega USA, Inc.
Court Name: Court of Appeals for the Eighth Circuit
Date Published: Apr 14, 2025
Docket Number: 23-3170
Court Abbreviation: 8th Cir.