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.
No single factor is determinative, and the courts weigh all of the factors to determine whether the individual is an employee or an independent contractor.
Analysis
In Adán’s case, the following factors are relevant:
- 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.
Overall, the factors weigh in favor of finding that Adán was an employee of Prestonwood. Prestonwood exercised a significant degree of control over Adán’s work, and his work was an integral part of Prestonwood’s business. The fact that Adán’s employment was temporary and that he did not have significant opportunities for profit or loss does not necessarily outweigh these factors.
Conclusion
Adán García was likely an employee of Prestonwood Sports Association for purposes of the FLSA.
Issue
Whether Adán was lawfully compensated for his work.
Rule
Under the FLSA, employers are required to pay employees a minimum wage and overtime pay. The minimum wage is currently $7.25 per hour. Employers are also required to pay employees time and a half for all hours worked over 40 in a week.
Analysis
Adán was paid $13.00 per game, which is above the minimum wage. He also only worked less than one hour per game, so he was not entitled to overtime pay. Therefore, Adán was likely lawfully compensated for his work.
Conclusion
Adán García was likely lawfully compensated for his work.
Additional Considerations
It is important to note that the FLSA has a number of exemptions, and some employers may be exempt from paying minimum wage or overtime pay. For example, employees who are employed as babysitters or who are employed by a small business may be exempt from the FLSA.
If you are unsure whether you are an employee or an independent contractor, or whether you are being lawfully compensated for your work, you should consult with an attorney.
