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United States Court of Appeals for the First Circuit
December 30, 1998, Decided
[*670] LIPEZ, Circuit Judge. This appeal involves an action brought in the district court under the Administrative Procedure Act ("APA"), 5 U.S.C. § 701 et seq., seeking review of a final administrative determination by the Department of Labor's Administrative Review Board (the Board) that Baystate Alternative Staffing, Inc., Able Temps Referrals, Inc., William Woods, Harold Woods, and Marlene Woods willfully violated the overtime compensation provisions of the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., and therefore were subject to civil monetary penalties pursuant to 29 U.S.C. § 216 [**2] (e). 1 Plaintiff-appellants, who were engaged in the business of providing unskilled workers to factories, cleaning companies, and similar entities in need of temporary labor, maintain that the district court erred by affirming the ruling of the Board that the corporate appellants, Harold Woods, and Marlene Woods were the temporary workers' "employers," within the meaning of the FLSA. Alternatively, plaintiff-appellants argue that the court erred by affirming the Board's conclusion that their alleged violations were "willful," within the meaning of § 16(e) of the Act.
We find no error in the court's affirmance of the Board's ruling that the corporate appellants were "employers" of the temporary workers. We conclude, however, that the Board misperceived the legal standards [**3] to be applied to the issues of whether Harold Woods and Marlene Woods were personally liable for civil penalties as "employers" of the temporary workers and whether the conduct of the plaintiff-appellants was "willful," within the meaning of § 16(e). We therefore vacate those portions of the court's judgment resolving those issues and order a remand of this case to the Board for reconsideration of the personal liability and willfulness issues under the correct legal standards.
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163 F.3d 668 *; 1998 U.S. App. LEXIS 32711 **; 137 Lab. Cas. (CCH) P33,778; 5 Wage & Hour Cas. 2d (BNA) 65
BAYSTATE ALTERNATIVE STAFFING, INC., ABLE TEMPS REFERRALS, INC., HAROLD WOODS, WILLIAM W. WOODS, AND MARLENE WOODS, Plaintiff-Appellants, v. ALEXIS M. HERMAN, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, Defendant-Appellee.
Prior History: [**1] APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS. Hon. Nathaniel M. Gorton, U.S. District Judge.
Disposition: Affirmed in part, vacated in part, and remanded.
temporary worker, employees, personal liability, temporary, willful, violations, overtime compensation, district court, independent contractor, personally liable, willful violation, payroll records, plaintiffs', provisions, economic reality, minimum wage, supervision, corporate officer, civil penalty, supervisory, compliance, affirming, decisions, overtime, provision of a section, meaning of the act, reckless disregard, legal standard, job site, plaintiff-appellants
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