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Becerra Becerra v. Expert Janitorial, LLC

Washington Supreme Court
332 P.3d 415, 181 Wash. 2d 186 (2014)
ELI5:

Sections

Rule of Law:

Under the Washington Minimum Wage Act, the existence of a joint employment relationship must be determined using a broad, 13-factor 'economic reality' test rather than a narrow test focusing solely on formal control.


Facts:

  • Fred Meyer grocery stores outsourced their night janitorial work to Expert Janitorial, LLC.
  • Expert Janitorial subcontracted the actual cleaning work to second-tier service providers, such as All Janitorial LLC.
  • The plaintiffs worked as night janitors in Fred Meyer stores, typically between 11:00 p.m. and 7:00 a.m.
  • The second-tier subcontractors paid the plaintiffs flat rates that fell below the state minimum wage and did not pay overtime despite the plaintiffs regularly working more than 40 hours per week.
  • Expert representatives visited the stores bi-weekly to inspect work quality.
  • Fred Meyer supervisors were required to sign off on daily work orders before the plaintiffs were permitted to leave their shifts.
  • The second-tier subcontractors admitted they could not afford to pay minimum wage or payroll taxes based on the contract price they received from Expert.

Procedural Posture:

  • Plaintiffs filed suit in state trial court against the second-tier subcontractors, Expert Janitorial, and Fred Meyer for violations of the Minimum Wage Act.
  • Expert Janitorial moved for partial summary judgment regarding its status as an employer.
  • Fred Meyer moved for partial summary judgment regarding its status as an employer.
  • The trial court granted summary judgment for both defendants, dismissing the joint employer claims based on a limited legal test.
  • Plaintiffs appealed the dismissal to the Court of Appeals.
  • The Court of Appeals reversed the trial court's summary judgment orders.
  • Fred Meyer and Expert Janitorial petitioned the Washington Supreme Court for review.

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Issue:

Does the Washington Minimum Wage Act impose joint employer liability on contracting entities based on the 'economic reality' of the working relationship rather than a limited set of regulatory control factors?


Opinions:

Majority - González

Yes, the Washington Minimum Wage Act (MWA) permits joint employer liability under a broad economic reality test. The Court reasoned that the MWA is remedial and defines 'employ' broadly as 'to suffer or permit to work,' consistent with the federal Fair Labor Standards Act (FLSA). The trial court erred by applying the limited 4-factor 'Bonnette' test, which focuses on formal hiring, firing, and record-keeping. Instead, courts must apply the more comprehensive 13-factor 'Torres-Lopez' test, which examines the 'economic reality' of the relationship. This approach prevents employers from using subcontracting arrangements as a subterfuge to avoid wage liabilities and considers whether the workers are integral to the business.



Analysis:

This decision significantly broadens the scope of potential liability for companies in Washington that outsource labor. By adopting the 13-factor Torres-Lopez test, the court makes it difficult for corporations to insulate themselves from wage and hour violations committed by subcontractors. The ruling emphasizes that the 'economic reality' of the relationship—including whether the work is integral to the business and whether the arrangement is a sham—matters more than formal contractual labels. This aligns Washington state law with broader federal interpretations of the FLSA, offering greater protection to low-wage workers in tiered employment structures.

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