Kenney v. Helix TCS, No. 18-1105 (10th Cir. 2019)Annotate this Case
Plaintiff Robert Kenney was a former employee of Defendant Helix TCS, Inc. (“Helix”), which provided security services for businesses in Colorado’s state-sanctioned marijuana industry. Kenney filed this lawsuit against Helix under the Fair Labor Standards Act (“FLSA”), alleging that Helix misclassified him and similarly situated workers as exempt from the FLSA’s overtime obligations. Helix moved to dismiss Kenney’s claim based on the Controlled Substance Act (“CSA”), arguing that Kenney’s employment activities were in violation of the CSA and are thus not entitled to FLSA protections. The Tenth Circuit concluded Helix wanted it to interpret the CSA in a manner implicitly repealing the FLSA’s overtime mandate for employers in the marijuana industry. The Tenth Circuit determined the “case law is clear that employers are not excused from complying with federal laws” because of their other federal violations. “Moreover, the purposes of the FLSA do not conflict with the CSA quite as directly as Helix implies. Helix cherry-picks among the enumerated purposes of the FLSA, citing only those most favorable to its arguments.” The Tenth Circuit did not draw conclusions about the merits of Kenney’s FLSA claims. Rather, the Court held only that Kenney and similarly situated individuals were not categorically excluded from FLSA protections. It therefore affirmed the denial of Helix’s motion to dismiss.