Entertainment workers Bambi Boots and Randy Rogers filed a complaint against their employer High Class Entertainment under the Fair Labor Standards Act, “It is a federal law applicable to employees engaged in interstate commerce or employed by an enterprise engaged in interstate commerce; sets minimum wages and overtime and regulates youth employment (Employment Law p. 480).” Fair Labor Standards Act has two requirements in order to file a complaint under this law. One is the employer and employee must have some kind of work relationship. Secondly, employer’s activities must meet an “in commerce” requirement. Bambi Boots and Randy Rogers have met those requirements because Bambi Boots started working with High Class Entertainment from May 26,
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The court has to define them by the “economic reality” test rather than “technical concepts” There are a few factors that Bambi Boots and Randy Rogers are not independent contract. 1.) Permanency of the relationship. Bambi Boots and Randy Rogers has been working for about 2 years for High Class Entertainment. 2.) Amount of the alleged contractor’s investment in facilities and equipment. Bambi Boots and Randy Rogers had to use High Class Entertainment facilities when they are at work. 3.) Nature and degree of control by the principal. High Class Entertainment control Bambi Boots and Randy Rogers work schedule, how much tips they can keep, and control specific style, colors, and quality of their …show more content…
Under the law of basic tips, “The basic rule of tips is that they belong to employees, not the employer (Guerin, Lisa).” According to the federal law, most states have rules for tips. Tip regulations allow employers to pay employees less than the minimum wages; employees receive enough tips to make up the difference. This is called “Tip Credit.” High Class failed to pay portions of the tips because they did not pay the workers minimum wage; the entertainers were compensated less than minimum wage. Another thing that High Class failed to compensate Bambi Boots, Randy Rogers, and the entertainers is the Bottoms Up Coins, which it is a “service charge.” The Bottom Up Coins is when the customer buy the coins from the High Class Entertainment, which the entertainers receives the coins. Once the entertainers exchange the coins for cash, High Class refused to allow the entertainers keep their tips in full; High Class Entertainment would keep a portion. The entertainers were also required to share their tips with other members that do not customarily receive tips in their positions. This is called Tipping Pool, where “All employees subject to the pool have to chip in a portion of their tips, which are then divided among a group of employees.” In the case, Bambi Boots and Randy Rogers had to share their tips with management, agent of
The court has to define them by the “economic reality” test rather than “technical concepts” There are a few factors that Bambi Boots and Randy Rogers are not independent contract. 1.) Permanency of the relationship. Bambi Boots and Randy Rogers has been working for about 2 years for High Class Entertainment. 2.) Amount of the alleged contractor’s investment in facilities and equipment. Bambi Boots and Randy Rogers had to use High Class Entertainment facilities when they are at work. 3.) Nature and degree of control by the principal. High Class Entertainment control Bambi Boots and Randy Rogers work schedule, how much tips they can keep, and control specific style, colors, and quality of their …show more content…
Under the law of basic tips, “The basic rule of tips is that they belong to employees, not the employer (Guerin, Lisa).” According to the federal law, most states have rules for tips. Tip regulations allow employers to pay employees less than the minimum wages; employees receive enough tips to make up the difference. This is called “Tip Credit.” High Class failed to pay portions of the tips because they did not pay the workers minimum wage; the entertainers were compensated less than minimum wage. Another thing that High Class failed to compensate Bambi Boots, Randy Rogers, and the entertainers is the Bottoms Up Coins, which it is a “service charge.” The Bottom Up Coins is when the customer buy the coins from the High Class Entertainment, which the entertainers receives the coins. Once the entertainers exchange the coins for cash, High Class refused to allow the entertainers keep their tips in full; High Class Entertainment would keep a portion. The entertainers were also required to share their tips with other members that do not customarily receive tips in their positions. This is called Tipping Pool, where “All employees subject to the pool have to chip in a portion of their tips, which are then divided among a group of employees.” In the case, Bambi Boots and Randy Rogers had to share their tips with management, agent of