Ruffin v. New Destination, LLC
2011 U.S. Dist. LEXIS 86904
| D.D.C. | 2011Background
- Ruffin and Young claim unpaid wages for counseling services performed for New Destination, LLC.
- New Destination and Lyles are sued under DCWPCL and FLSA for failure to pay wages; Lyles is CEO/owner.
- Plaintiffs signed Professional Services Agreements with New Destination; compensation was hourly and controlled by the Clinical Director.
- Ruffin and Young submitted time sheets (NDBHS Tickets) detailing hours; only small payments were made.
- Court previously ruled on breach of contract against New Destination for specific unpaid amounts and dismissed alter ego against Lyles; renewed motion seeks DCWPCL and FLSA relief based on unpaid wages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Ruffin and Young are within the DCWPCL exemption as bona fide professionals | Not paid on salary/fee basis; not exempt | Contracts contemplate hourly pay; possibly exempt | Not exempt; employees under DCWPCL; judgment for plaintiffs on DCWPCL |
| Whether Ruffin and Young are employees under the FLSA rather than independent contractors | They are employees given employer control and records | Not explicitly contested; evidence suggests contractors | They are employees under the FLSA (employer control present) or alternatively waived due to lack of opposition |
| Whether Lyles qualifies as an FLSA employer due to operational control | Lyles had ownership, hourly wages, hiring, and payment authority | N/A (no opposition) | Lyles qualifies as an FLSA employer for unpaid wages |
Key Cases Cited
- Morrison v. Int'l Programs Consortium, Inc., 253 F.3d 5 (D.C. Cir. 2001) (economic reality test for employee status)
- Donovan v. Agnew, 712 F.2d 1509 (2d Cir. 1983) (corporate officer with operational control liable as employer)
- U.S. Dep’t of Labor v. Cole Enters., Inc., 62 F.3d 775 (6th Cir. 1995) (definition of employer under FLSA)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (genuineness of material factual disputes for summary judgment)
- McKinney v. United Stor-All Centers LLC, 656 F. Supp. 2d 114 (D.D.C. 2009) (FLSA exemptions are affirmative defenses; burden on employer)