A hotel manager was recently held individually liable for violations of federal wage and hour law under a broad definition of “employer.” Although the ruling applied to a unique set of facts – including that the manager was the hotel owner’s son – the June 20 decision from the 11th U.S. Circuit Court of Appeals contains some valuable lessons and reminders for all employers. Here’s what you need to know about this ruling and three steps you can take to prevent wage and hour violations.

What Happened?

Clerk was partially paid through lodging. A front desk clerk worked for nearly a decade at various Alabama hotels operated by the same owner and his son. The clerk primarily worked night shifts, averaged 62 hours per week, and was compensated with monthly paychecks and onsite lodging.

Clerk sued hotel entity, owner, and son for wage violations. When the relationship between the parties soured, the clerk sued the company, the owner, and his son, alleging that he was not paid the federal minimum wage or overtime premiums in violation of the Fair Labor Standards Act (FLSA).

Federal wage law broadly defines “employer.” The FLSA allows employees to sue for such violations and broadly defines “employer” as “any person acting directly or indirectly in the interest of an employer in relation to an employee.”

Son says he’s not an employer. The hotel owner’s son argued that he was not an “employer” because he was not an owner, did not have any control or decision-making authority over...

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