U.S. Court of Appeals for the Fourth Circuit

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Petition for rehearing en banc denied

March 06, 2017

U.S. Chamber urges Fourth Circuit to grant petition for rehearing in FLSA joint employer case

February 24, 2017

The U.S. Chamber filed a motion to file an amicus brief urging the Fourth Circuit to grant rehearing en banc to resolve the standard for determining joint employment under the Fair Labor Standards Act.

In this case and a companion case, Salinas v. Commercial Interiors, Inc., a panel of the Fourth Circuit proclaimed a “new standard” applicable to claims that a company is a joint employer under the FLSA. In adopting its expansive new standard, the panel departed from the Fourth Circuit’s prior decision in Schultz v. Capital International Security, Inc. and created a circuit split. The Chamber’s brief argues that en banc review is warranted because the standard for evaluating FLSA joint employment claims is exceptionally important to an increasing number of litigants, the panel’s decision is inconsistent with the prior Schultz decision, and the panel’s decision threatens to create a circuit split. The Fourth Circuit denied the Chamber's motion for leave to file.

Michael J. Gray, E. Michael Rossman, Anne D. Harris, and Matthew W. Lampe of Jones Day served as counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

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