Lee v. ABC Carpet & Home
Plaintiff Richard Lee sued ABC Carpet & Home, Jerry Weinrib, and Paul Chapman for back wages under the Fair Labor Standards Act (FLSA) and New York Labor Law, asserting he was an employee. Defendants sought summary judgment, contending Lee was an independent contractor. The court employed the five-factor 'Economic Reality Test' to determine employment status. Significant factual disputes emerged concerning employer control, Lee's potential for profit or loss, the required skill for the work, the permanence of the working relationship, and whether carpet installation was an integral part of ABC's business. Given these unresolved material facts, the court denied the Defendants' motion for summary judgment.