Opinion ID: 723390
Heading Depth: 1
Heading Rank: 2

Heading: Komoda's and Sawada's Liability as Employers

Text: 12 The district court found that Komoda and Sawada were each an employer only as to his own company. An employer includes any person acting directly or indirectly in the interest of an employer in relation to an employee. 29 U.S.C. § 203(d). To be an employer, the person is not necessarily required to have an ownership interest or control of day-to-day operations. See Reich v. Circle C Investments, Inc., 998 F.2d 324, 329 (5th Cir.1993).  'The remedial purposes of the FLSA require the courts to define 'employer' more broadly than the term would be interpreted in traditional common law applications.'  Dole v. Elliott Travel & Tours, Inc., 942 F.2d 962, 965 (6th Cir.1991) (citation omitted). The application of the statute is reviewed de novo, the underlying facts for clear error. Id. 13 The government points to little evidence that Komoda was directly involved in Ameriana's New Happiness Club after he sold it to Sawada. Sawada and his wife owned 100% of the stock and Komoda did not work there. The court's finding is neither clearly erroneous nor legally incorrect. Komoda, however, was an employer of the Mayten Club. He was a corporate officer with a substantial ownership interest and was directly involved in decisions affecting the employees. See Donovan v. Agnew, 712 F.2d 1509, 1511 (1st Cir.1983); see also Elliott Travel, 942 F.2d at 965; Grim Hotel, 747 F.2d at 971. Komoda is personally liable for the violations at JEC and SFG. 14 The district court held that Sawada was personally liable for violations at Ameriana's New Happiness Club. We hold that he is also liable for violations at JEC where he served as general manager for the Micronesia Club. See Agnew, 712 F.2d at 1510 (There may be several simultaneous employers.). He was in charge of the employees at the club and managed the day-to-day operations. He represented JEC as a corporate agent. He regularly traveled to the Philippines to recruit employees and he signed their employment contracts. The fact that Sawada does not have an ownership interest in JEC is not determinative. See Donovan v. Sabine Irrigation Co., Inc., 695 F.2d 190, 195 (5th Cir.), cert. denied, 463 U.S. 1207 (1983). We hold that he was an employer at JEC for purposes of FLSA liability.