Yesterday,
the Cuyahoga County Court of Appeals reversed the denial of liquidated double
damages and attorneys’ fees to two successful plaintiffs who sued for denial of
both minimum wage and overtime compensation under Ohio law. Porter
v. AJ Automotive Group, Inc., 2015-Ohio-3769. The Court
found that the employer bore the burden of proving that it was exempt from Ohio’s
wage laws and it had not argued that it was exempt. Therefore, the plaintiffs were entitled to
liquidated damages and attorneys’ fees under their minimum wage claim under
Ohio Revised Code § 4113.14 and Ohio Constitution Article 34a and to their
unpaid overtime compensation under §4113.03.
The plaintiffs worked as car
washers for the defendant employer. They
sued for unpaid minimum wages and overtime compensation under state and federal
law. The employer argued that they were
tipped employees and that it was not subject to the Fair Labor Standards Act
because it did not meet the sales volume or enterprise test. The trial court concluded that the defendant
was not an “employer” under federal or state wage laws, but used its equitable
power to award the plaintiffs unpaid minimum wages and overtime
compensation. However, it denied them
liquidated damages and attorneys’ fees. They appealed.
On
appeal, there was no dispute about the amount of wage liability or
applicability of the FLSA. The trial
court had concluded that the plaintiffs failed to prove that the defendant was
a statutory employer under §4113.02(D), which is the overtime compensation
statute and includes everyone as an employer, except businesses with gross annual
sales of less than $150,000. However, the Court agreed with the Franklin
County Court of Appeals that the employer – not the plaintiff – bears the
burden of proving its exemption from the statute by proving its sales meet the
annual threshold. Moreover, the
defendant had never raised or argued any defense that it was not an employer
under Ohio law. Finally, the minimum
wage statute at §4113.14 incorporates by reference the FLSA definition of
employer, which is “’any person acting directly or indirectly in the interest
of an employer in relation to an employee * * *.’ 29 U.S.C. 203(d).”
Accordingly, the Court found
that the plaintiffs were entitled to the full remedies of ORC §4114.14 and
§34a, which includes liquidated damages of twice the amount of unpaid minimum
wages and attorneys’ fees. (Ohio’s
overtime compensation does not provide for liquidated damages).
NOTICE: This summary is designed merely to inform and alert you
of recent legal developments. It does not constitute legal advice and does not
apply to any particular situation because different facts could lead to
different results. Information here can be changed or amended without
notice. Readers should not act upon this information without legal advice. If
you have any questions about anything you have read, you should consult with or
retain an employment attorney.
