Skip to main content

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/

Comments

Post a Comment

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...
Post a Comment
Read more

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...
Post a Comment
Read more

San Diego Rolls Back Vaccine Mandate For City Workers

Last Tuesday, the San Diego City Council voted to do away with the vaccine mandate for city employees. The city’s vaccine mandate that was in place required city workers to get the coronavirus vaccine or risk termination.  Perhaps to this surprise of no one, the city’s policy came under fire with 14 employees being terminated and over 100 other employees resigning.  With the coronavirus subsiding, including in Southern California, the San Diego City Council took action. Now, bear in mind, the repeal of the vaccine mandate does not take place immediately. With that being said, the mandate will be repealed March 8th.  I suppose the question now is, what other cities or regions follow San Diego’s lead? For additional information:   https://www.sandiegouniontribune.com/news/politics/story/2023-01-24/san-diego-repeals-controversial-covid-19-vaccine-mandate-citing-drop-in-cases-hospitalizations
Post a Comment
Read more