In the case of Padilla v. Caliper Building System, LLC., Gilbert Padilla filed a lawsuit against Caliper Building System (Caliper) and his direct employer, JMC Contracting (JMC), for violating labor laws. Caliper was a subcontractor for construction projects and hired laborers, such as Padilla, through JMC.
Padilla claimed to have often worked more than 50 hours per week but was only paid the regular hourly rate. Padilla also claimed that Caliper controlled his work and kept employment records. At work, Caliper had significant control over workers. Padilla claimed that Caliper’s foremen inspected their work, gave instructions, and even provided materials for work. That being said, Padilla’s direct employer, JMC, had set the same pay rate for all workers and did not provide overtime pay.
Padilla argued that Caliper should also be held responsible as a joint employer. Caliper tried to dismiss this case, but the court disagreed, stating that Padilla’s allegations were believable.
Caliper’s motion to dismiss the case was denied by the court.
Key lessons from this case:
- If two entities qualify as “employers” of the same employee and share responsibility for the employee’s working hours, they can be held jointly liable for overtime wages.
- Employers should be aware of their obligations and responsibilities when utilizing subcontractors or working with other entities.
- The control an employer has can be a determining factor in establishing an employment relationship and potential liability.
If you want to know more about overtime regulations, read our guide on Minnesota Overtime Laws.
