LLC Members Aren't Always Employers, 5th Circ. Says

Law360, New York (February 29, 2012, 4:08 PM EST) -- The Fifth Circuit said Wednesday that members of limited liability companies aren't necessarily themselves employers of company workers under federal labor law, affirming summary judgment for a part-owner of a Houston nightclub company in a bartender's putative class action seeking back wages.

Bartender Nicholas Gray sued Pasha Entertainment Group LLC and member Michael Warren Powers in 2008, saying he and other bartenders at the company's Pasha Lounge weren't paid any wages and received only tips, in violation of the Fair Labor Standards Act. Both sides agreed...
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