Benjamin v. B&H Education, Inc., No. 15-17147 (9th Cir. 2017)
Annotate this CaseUnder the "economic reality" test, cosmetology and hair design students were not employees under the Fair Labor Standards Act (FLSA) even though they alleged that much of their time was spent in menial and unsupervised work. The Ninth Circuit affirmed the district court's grant of summary judgment for defendant, holding that a primary beneficiary analysis, rather than a test formulated by the Department of Labor, applied in the context of student workers. The panel reasoned that the students, not defendant's schools, were the primary beneficiaries of their own labors. The panel also held that the students were not employees entitled to be paid under Nevada or California law. Finally, the district court did not abuse its discretion by striking declarations as sanction under Federal Rule of Civil Procedure 37.
Court Description: Labor Law. The panel affirmed the district court’s summary judgment in favor of the defendant in an action brought under the Fair Labor Standards Act by students of cosmetology and hair design. The panel held that, under the “economic reality” test, the students were not employees under the FLSA even though they alleged that much of their time was spent in menial and unsupervised work. Agreeing with other circuits, the panel held that a “primary beneficiary” analysis, rather than a test formulated by the Department of Labor, applies in the specific context of student workers. The panel concluded that the students, not defendant’s schools, were the primary beneficiaries of their own labors because at the end of their training they qualified to practice cosmetology. The panel held that the students also were not employees entitled to be paid under Nevada or California law. The panel further held that the district court did not abuse its discretion by striking declarations as a sanction under Federal Rule of Civil Procedure 37. BENJAMIN V. B&H EDUCATION 3
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