In the case of Gallagher v. Eat to the Beat, Inc., Margaret Gallagher filed a lawsuit against Eat to the Beat (Eat-Beat) and Global Infusion Group (Global) for alleged violations of the FLSA and other District of Columbia laws. Eat-Beat and Global managed events worldwide including an event at a music venue called The Anthem.
Gallagher worked exclusively for Eat-Beat and Global as an operations manager and assistant operations manager. Her duties included various tasks related to catering, events planning, and managing the concessions and kitchen. Gallagher alleged that she worked closely with any clients recruited by Eat-Beat and Global. Gallagher received a flat daily rate for event or office days, along with tips, and was also included in the tip pool for The Anthem’s employees.
Gallagher claimed that she was not provided with sick leave and overtime pay. However, Eat-Beat and Global argued that Gallagher was not their employee under the FLSA’s definition and filed a motion to dismiss the claims. The court emphasized that a complaint must contain enough factual evidence to state a plausible overtime pay claim. The court reviewed the facts and found that Gallagher had sufficiently alleged that she was an employee based on the nature of her duties, the supervision she received, and the resources provided to her by the defendants.
Therefore, the court denied Eat-Beat and Global’s motion to dismiss.
Key lessons from this case:
- An employer must clearly define the classification of an employee to avoid disputes on overtime pay entitlements.
- An employee’s job duties are more telling of their overtime eligibility than their job title.
- The employee who files a lawsuit to claim back wages bears the burden of proof to establish jurisdiction.
If you want to know more about overtime regulations, read our guide on District of Columbia Overtime Laws.
