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One to Keep An Eye On: Kenney v. Helix TCS (Tenth Circuit Court of Appeals)


As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.

This is one to keep an eye on.


Facts:  Helix TCS ("Helix") is in the business of providing security, inventory control, and compliance services to the marijuana industry in Colorado.  Between February 2016 and April 2017, Robert Kenney ("Kenney") worked at Helix as a security guard.  Kenney's duties included patrolling assigned locations, investigating and documenting all facility related incidents, and enforcing client, local, state, and federal policies and regulations.  Although Helix classified Kenney as an exempt employee under the Fair Labor Standards Act ("FLSA"), Kenney claimed that he and other similarly situated employees frequently performed non-exempt job duties.  As a result, Kenney filed suit and alleged that he was not an exempt employee under any applicable exemption of the FLSA and was thus entitled to overtime compensation.

A District Court in Colorado found in favor of Kenney and rejected an argument by Helix that it was excused from complying with the FLSA because its business practice may be in violation of federal law.  (Readers will likely recall that while 33 states and the District of Columbia have passed laws that legalize medical marijuana, there is yet to be a federal law legalizing medical marijuana use as well).  Helix proceeded to appeal to the Tenth Circuit Court of Appeals.

Issue:  Does an employer have to comply with federal regulations, including the FLSA, even if its business practice is in violation of federal law?

Current Status:  Back in mid November, the Tenth Circuit Court of Appeals heard oral arguments on the matter.

Looking Ahead:  Since oral arguments were heard last month, things have been relatively quiet.  I would expect a ruling from the Court soon, perhaps within the next month or two.  Based upon the tenor of how oral arguments played out as well as the District Court's ruling, I would expect the Tenth Circuit to affirm the ruling and uphold judgment for Kenney.

And for readers that have been following marijuana in the workplace related cases, such as Coats v. Dish Network and Callaghan v. Darlington Fabrics, consider this one a "companion case" of sorts.


For additional information:  https://www.courtlistener.com/audio/59993/kenney-v-helix-tcs/

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