Opinion ID: 6930138
Heading Depth: 2
Heading Rank: 1

Heading: The Relationship Between Fegley and Higgins

Text: The FLSA is designed to be “a broadly remedial and humanitarian statute.” Dunlop v. Carriage Carpet Co., 548 F.2d 139, 143 (6th Cir.1977). We thus “construe[ ] the Act’s definitions liberally to effectuate the broad pohcies and intentions of Congress.” Id. at 144. Under the FLSA, an “employee” is “any individual employed by an employer.” 5 29 U.S.C. § 203(e)(1). Further, to “employ” is “to suffer or permit to work.” 29 U.S.C. § 203(g). Whether a particular situation is an employment relationship is a question of law. Donovan v. Brandel, 736 F.2d 1114, 1116 (6th Cir.1984). Therefore, we review de novo the trial court’s ruHng that Fegley was an “incipient partner.” We have noted that where a partnership agreement is executory, “[i]n order to transform it into an executed one, and thus call the partnership into being, it was necessary that the parties do the things that they agreed to do.” Commissioner of Internal Revenue v. Olds, 60 F.2d 252, 254 (6th Cir.1932). Partnership agreements are created by implied or express contract. Id. Here the parties had agreed that Fegley was to contribute approximately $65,000 to the proposed business. Indeed, the trial court stated in its second order that “[n]o agreement was reached because Fegley lacked the necessary funds.” Since Fegley and Higgins did not “do the things that they agreed to do” to form the proposed business, we find that the court erred in determining that Fegley was a partner. Fegley was an employee. 6