Parrish v. Premier Directional Drilling, L.P.

Summary

The Fifth Circuit held that directional-driller consultants were independent contractors, not employees under the FLSA, applying the economic reality test and the five *Silk* factors. The court found that the degree of control, opportunity for profit or loss, skill and initiative, and permanency of the relationship all favored independent contractor status, while the relative investment factor (though favoring employee status) was given little weight. The district court's summary judgment for the plaintiffs was vacated, and judgment was rendered for the defendant; the court did not reach the issue of whether a three-year statute of limitations for willful violations applied.

Holdings

1. The plaintiffs are independent contractors, not employees, under the FLSA economic reality test.

Questions Presented

1. Whether the plaintiffs were employees or independent contractors under the Fair Labor Standards Act.

Disposition

vacated