Callahan v. City of Chicago, No. 15-1318 (7th Cir. 2016)
Annotate this CaseIn 2009-2011, Callahan frequently drove a taxicab in Chicago. She does not own a cab, nor does she own a medallion that represents the city’s permission to operate a taxi. She leased both from owners by the week, day, or half day. Callahan asserts that her net proceeds (fares and tips, less lease fees and gasoline) averaged less than the minimum wages required by the Fair Labor Standards Act, 29 U.S.C. 201, and the Illinois Minimum Wage Law. Callahan contends that Chicago must make up the difference because its regulations (Chicago sets rates that taxis may charge) are confiscatory and are so extensive that Chicago must be treated as her employer. The Seventh Circuit affirmed dismissal. Callahan does not own any asset whose market value has been reduced by the regulation of taxi fares. Persons who own cabs or medallions are (potentially) adversely affected by caps on what owners can charge; Callahan owns her own time, but Chicago does not require her to devote any of that time to taxi driving. Extensive regulation does not make the government the employer of the regulated parties.
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