Ninth Circuit holds FLSA retaliation claim valid against non-employer acting in employer’s interest: Hollis v. R&R Restaurants, Inc.

In Hollis v. R&R Restaurants, Inc. (9th Cir. 2025) 159 F.4th 677, the Court of Appeals for the Ninth Circuit held that an FLSA retaliation claim does not require a direct employment relationship between the plaintiff and the retaliator, provided the defendant acts “indirectly in the interest of” the plaintiff’s employer, and that cancelling a contract to minimize litigation liability is insufficient to justify adverse action against a litigant.

Plaintiff, a dancer at a strip club owned by Defendants (“Sassy’s”), sued for wage and hour violations alleging misclassification. After Plaintiff filed their complaint, Defendant Faillace canceled an agreement for Plaintiff to perform a weekly show at another club he managed (“Dante’s”), citing legal liability related to the lawsuit. Plaintiff amended their complaint to allege FLSA retaliation. The district court granted Defendants summary judgment, ruling that the FLSA only provides a private right of action for retaliation committed by current employers, and Plaintiff was not employed by Dante’s. Plaintiff appealed the retaliation ruling.

The Ninth Circuit reversed and remanded. Citing Arias v. Raimondo (9th Cir. 2017) 860 F.3d 1185, the court held the district court erred by requiring Plaintiff to establish an employee-employer relationship with Dante’s. Instead, under 29 U.S.C. § 203(d), a defendant need only act “indirectly in the interest of” a plaintiff’s employer—a threshold Defendant Faillace met regarding Sassy’s. The court clarified that Plaintiff need not prevail on their underlying misclassification claim to establish standing; rather, the “economic realities” test determines their employment status with Sassy’s. Finally, the Ninth Circuit held that Faillace’s cancellation of the work agreement was not a legitimate business decision, finding a “financial interest in minimizing liability” insufficient to justify adverse action against a litigant.

Full opinion

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