Vanegas v. Signet Builders, Inc., No. 21-2644 (7th Cir. 2022)Annotate this Case
Vanegas, a Mexican citizen, was hired by Signet, a nationwide construction company, to work in the U.S. on an H-2A guestworker visa, which authorizes foreign workers to perform “agricultural” work in the U.S. on a temporary basis, if the proposed employer can show that there are too few domestic workers willing and able to do the work and that the use of guest-workers will not undercut local workers’ wages and working conditions, 8 U.S.C. 1101(a)(15)(H)(ii)(a); 1188(a)(1). Vanegas was assigned to build livestock structures on farms in Wisconsin and Indiana. He routinely worked more than 40 hours a week, but Signet did not pay him extra for his overtime hours.
He filed a complaint under the Fair Labor Standards Act (FLSA) and moved for conditional certification of a collective action on behalf of all Signet H-2A workers who were exclusively assigned to construction work. The district court dismissed, finding that Vanegas was an agricultural worker, exempt from FLSA’s overtime protections, 29 U.S.C. 213(b)(1). The Seventh Circuit reversed. Work falls within the FLSA agricultural exemption only if it is both “performed by a farmer or on a farm” and if it “does not amount to an independent business.” Regulations establish a fact-intensive, totality-of-the-circumstances test to determine whether work performed on a farm is agricultural or is an independent business. Signet did not prove that the agricultural exemption applies.