The Case of the Rookie Referee
Adán García is a fourteen-year-old young man who is an excellent student and
student-athlete. Academically, Adán excels across the curriculum. And while he played
several sports throughout childhood, he is presently committed to his high school football
and cross-country teams. On his ninth-grade football team, he is the backup quarterback
(“QB2,” as they say in Texas). And – with his 5:04 time in the mile – he is already on his
high school’s varsity cross-country team.
This past summer, Adán wanted to make a little money. He learned of an opportunity
at the Prestonwood Sports Association in Dallas to be a referee for children’s basketball
games. See Appendix A for the solicitation. He applied for the position, was selected, paid
the requisite training fees, and completed the required trainings.
During the training, he was presented with a document called “Independent
Contractor Agreement / Consent to Background Check” (see Appendix B). He completed
and signed the form. He also completed and signed the U.S. Citizenship and Immigration
Services “Employment Eligibility Verification” (“I-9”) form.
Over the course of the summer, Adán worked as a referee for twenty-six children’s
basketball games. Each game lasted less than one hour. For each game, he was
compensated $13.00. His reviews from colleagues and coaches were good – on the high
end of expectations for a first-time referee. He was paid the full amount (26 * $13 = $338)
on a lawful and reasonable payment schedule. No withholdings were made from the total
paid.
At the end of the calendar year, Adán received a 1099-MISC form from Prestonwood
(see Appendix C).
Prompt for The Case of the Rookie Referee
In eight hundred words or fewer, provide a thorough legal analysis (preferably using the
suggested “IRAC” format) of the legal issues presented, which are probably:
• Whether Adán was an employee?
• Whether Adán was lawfully compensated for his work?
IRAC Analysis of the Case of the Rookie Referee
Issue
Whether Adán García was an employee of Prestonwood Sports Association for purposes of the Fair Labor Standards Act (FLSA).
Rule
The FLSA defines an employee as "any individual employed by an employer." 29 U.S.C. § 203(e)(1). Whether an individual is an employee or an independent contractor is determined by a common law test that considers a number of factors, including:
- The degree of control exercised by the employer over the worker's work;
- The worker's opportunity for profit or loss;
- The worker's investment in the business;
- The skill required to perform the job;
- The permanence of the relationship; and
- Whether the work is an integral part of the employer's business.
- Degree of control: Prestonwood provided Adán with training and had authority to assign him to specific games. Adán was also required to wear a Prestonwood uniform. These factors suggest that Prestonwood exercised a significant degree of control over Adán's work.
- Opportunity for profit or loss: Adán was paid a flat fee for each game he refereed. He did not have the opportunity to make more money by working harder or faster. He also did not have an opportunity to lose money if he made mistakes. This factor suggests that Adán did not have significant opportunities for profit or loss.
- Investment in the business: Adán did not need to invest any significant money in his own business to referee games for Prestonwood. He only needed to purchase a uniform and attend training. This factor suggests that Adán did not have a significant investment in the business.
- Skill required: Refereeing basketball games requires some skill, but it is not a highly specialized skill. This factor suggests that the skill required to perform the job is not a significant factor to consider.
- Permanence of the relationship: Adán only worked for Prestonwood for the summer. This is a relatively short period of time, but it is not necessarily dispositive of the issue of whether he was an employee.
- Integral part of the business: Refereeing games is an integral part of the Prestonwood Sports Association's business. Without referees, Prestonwood would not be able to offer youth basketball leagues. This factor suggests that Adán's work was an integral part of Prestonwood's business.