Payment to Employees Not Released and Otherwise.
I recently wrote about the case of the tenth district, Kenney v. Helix TCS, Inc. where the appellate court is asked to decide whether the Federal Labor Standard (FLSA) is a pay and protection of employees of cannabis companies. This case has not seen much movement when I wrote about it, but its decision can have a significant impact on a recent case filed with the Oregon Federal District Court.
Michael Garity has filed a state and FLSA wage and hourly application for a former employer, WRD Investments LLC ("WRD Investments"). According to the complaint, WRD Investments hired Garity to provide expertise and labor to grow WRD's investments in marijuana near Junction City in Oregon.
Mr. Garity claims that she was a "free" employee of WRD's investments. His status as a non-exempt employee would have required WRD investment to pay Mr Garity a minimum wage for all hours worked and overtime for all hours of work that are over 40 hours a week. In the complaint, Garity claims that between March 2016 and May 2017 she has been able to work for about 2,500 hours without compensation. He also claims that he often worked more than 40 hours a week without overtime.
Mr. Garity's complaints do not stop here. Mr Garity also claims that WRD Investments did not provide him with a specific payroll bill and was not able to validate regular payment dates in violation of Oregon's laws. The complaint also states that Mr Garity caused the costs of WRD Investments, such as the use of his personal vehicle for the WRD investment business, without compensation for WRD investment.
Mr. Garity's appeal requires actual damages for the unpaid minimum wage and overtime, as well as the same amount as compensation and business expenses, compensation for Oregon's salary and salary levels, as well as lawyer's fees and expenses. Garity's appeal does not represent a figure, but, according to my calculations, WRD Investments could be about $ 40,000, which is only related to FLSA's claims. If this matter continues largely in litigation, WRD investment can also be a premium for a lawyer that could eventually exceed $ 40,000.
The Kenney incident at the beginning of this post may have a significant impact on Mr Garity's demands. The Garity case has been filed with the District District Court of Ninth District and nothing binds the Ninth District Court to follow the decision of the tenth district. However, the District Court of the Ninth District was able to persuade by the decision of the Tenth Circuit Court and decide to follow its precedent. Alternatively, it could ignore the precedent and decide to create its own path. In any case, it is very interesting to see the legal justification for the Garity case protecting FLSA marijuana workers.
Regardless of a good lesson, you can tell Mr. Garity's appeal. First of all, make sure that you classify your employees to properly released or released employees. Secondly, and perhaps more importantly, make sure you pay the employees properly. If you are ever worried, you have violated pay and hour laws, as it is always a good idea that a cannabis ombudsman checks the payment methods. It may cost some money, but will probably save you a lot, much more in the long run.