This Car Will Run: Third Circuit Holds That Enterprise Holdings Is Not the Joint Employer of Its Subsidiaries' Employees

Plaintiffs often attempt to impose liability on parent corporations for Fair Labor Standards Act (“FLSA”) violations allegedly committed by their subsidiaries.  They do so by arguing that the parent is a joint employer of its subsidiaries’ employees.  That strategy has just become more difficult for plaintiffs, at least those filing in the Third Circuit.  On June 28, 2012, that Court of Appeals affirmed the District Court’s decision awarding summary judgment in favor of Enterprise Holdings, Inc. (“Enterprise Holdings”) on the grounds that Enterprise Holdings was not the joint employer of its subsidiaries’ employees.  In Re Enterprise Rent-a-Car [“Enterprise”] Wage & Hour Employment Practices Litigation.

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