Most companies know the Fair Labor Standards Act (FLSA) requires employers to pay employees a minimum hourly wage plus overtime, unless an exemption applies. What may be surprising, however, is how broadly the FLSA and courts applying it define who is an “employer.” The Eleventh Circuit Court of Appeals addressed this issue in Spears v Patel, No. 22-13376 (11th Cir. 2024), a unanimous opinion where the court found a hotel manager, who was not an owner or officer of the employer, could be held individually liable to the hotel’s front desk staff for FLSA violations. Employers with workers in Alabama, Georgia and Florida should be keenly aware of the impact of this opinion on employees in those states, and Texas employers should take heed that a similar finding could be reached by the federal courts in this state.
Background to the ‘Spears’ Case
William Spears worked as a front desk clerk at hotels operated by Rick Patel Sr. and his son, Rick “Sunny” Patel Jr. Throughout his nearly decade-long employment at various hotels in Alabama operated by Rick Sr. and Sunny, Spears worked night shifts, usually 62 hours per week, and was compensated with monthly paychecks and onsite lodging. Like Spears, Sunny lived onsite and was a wage-earning employee of the hotel.
