Gray v. Powers

Nicholas Gray (plaintiff) was a bartender and later a general manager for a nightclub called Pasha Lounge, which operated from April 2007 until September 2008, when the club went out of business. Pasha Lounge was operated by Pasha Entertainment Group, L.L.C. (Pasha Entertainment), which was dissolved after Pasha Lounge closed. Gray sued Pasha Entertainment and one of its owners, Michael Powers (defendant), alleging that during Gray’s service as a bartender, he was not paid hourly and was paid only tips. Gray alleged that Powers was an employer under the Fair Labor Standards Act (FLSA). As a founding member of Pasha Entertainment, Powers had donated money toward the nightclub’s remodeling, which he supervised. After construction was finished, Powers visited Pasha Lounge only five or six times. Powers was not involved in the daily operation of the club, did not hire or terminate employees, did not manage work schedules, and did not keep employee records. Powers signed checks on occasion. Gray’s only interactions with Powers were that Powers once complemented Gray and that Powers asked him to serve specific guests while Powers was present socially on two occasions. Gray acknowledged that while working as a bartender, he considered the general manager who had hired him and who had established his duties to be his supervisor. Gray sought to hold both Pasha Entertainment and Powers liable as employers for alleged violations of the FLSA’s minimum-wage requirements. Powers moved for summary judgment. Pasha Entertainment did not appear at trial and experienced an adverse ruling as a result. A district court granted summary judgment to Powers, finding that Powers was not an employer for FLSA purposes. Gray appealed.