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No. 10738011
United States Court of Appeals for the Ninth Circuit
Hollis v. R&R Restaurants, Inc
No. 10738011 · Decided November 18, 2025
No. 10738011·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
November 18, 2025
Citation
No. 10738011
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
ZOE HOLLIS, individually and on No. 24-2464
behalf of all others similarly situated,
D.C. No.
3:21-cv-00965-
Plaintiff - Appellant,
YY
v.
R&R RESTAURANTS, INC, an OPINION
Oregon corporation doing business as
Sassy's; STACY MAYHOOD; IAN
HANNIGAN; FRANK FAILLACE,
Defendants - Appellees.
Appeal from the United States District Court
for the District of Oregon
Michael H. Simon, District Judge, Presiding
Argued and Submitted July 8, 2025
Seattle, Washington
Filed November 18, 2025
Before: M. Margaret McKeown, Richard A. Paez, and
Gabriel P. Sanchez, Circuit Judges.
Opinion by Judge Paez
2 HOLLIS V. R&R RESTAURANTS, INC.
SUMMARY *
Fair Labor Standards Act
The panel reversed the district court’s summary
judgment in favor of defendants on a retaliation claim under
the Fair Labor Standards Act and remanded for further
proceedings.
Zoe Hollis, a dancer at a Portland strip club called
Sassy’s, sued the club’s owners and managers under the
FLSA for misclassifying its dancers as independent
contractors and violating corresponding wage and hours
provisions. After Hollis filed the complaint, Frank Faillace,
a partner and manager of both Sassy’s and another club
called Dante’s, canceled an agreement for Hollis to perform
at a weekly variety show at Dante’s. Hollis then amended
the complaint to allege that Faillace’s decision to cancel the
performance at Dante’s constituted retaliation in violation of
the FLSA. The district court granted summary judgment on
the ground that to have a private right of action for
retaliation, Hollis must have been employed at Dante’s when
Faillace canceled the scheduled performance.
The panel held that, while the FLSA requires an
underlying employment relationship, it covers retaliation
committed by the employer or “any person acting directly or
indirectly in the interest of an employer in relation to an
employee.” Thus, the alleged retaliator need not be the
actual employer, and the plaintiff need not have been
employed by the actual employer when the retaliation
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
HOLLIS V. R&R RESTAURANTS, INC. 3
occurred. The panel held that, in the context of retaliation,
the phrase “indirectly in the interest of an employer” does
not require an agency relationship with the actual employer
or the conferral of any direct benefit to the employer.
The employee-employer relationship at issue was the
one between Hollis and Sassy’s. The panel left it to the
district court to determine on remand whether Hollis’s work
at Sassy’s satisfied the “economic realities” test for
establishing employee status. The panel held that in
ascertaining whether Hollis was an employee of Sassy’s, it
was not relevant that any FLSA wage and hour claims based
on the alleged misclassification were time-barred. The panel
also left it to the district court or trier of fact to determine on
remand whether Faillace’s acts in canceling the scheduled
performance and barring Hollis from future work at Dante’s
constituted retaliation.
COUNSEL
John P. Kristensen (argued), Kristensen LLP, Santa Barbara,
California; S. Amanda Marshall, S. Amanda Marshall LLC,
Portland, Oregon; for Plaintiff-Appellant.
Anthony D. Kuchulis (argued) and Sara M. Dueno, Dunn
Carney LLP, Portland, Oregon; for Defendants-Appellees.
4 HOLLIS V. R&R RESTAURANTS, INC.
OPINION
PAEZ, Circuit Judge:
Zoe Hollis, a dancer at a Portland strip club called
Sassy’s, sued the club’s owners and managers under the Fair
Labor Standards Act (“the FLSA” or “the Act”) for
misclassifying its dancers as independent contractors and
violating corresponding wage and hour provisions. After
Hollis filed the complaint, Frank Faillace—a partner and
manager of both Sassy’s and another club called Dante’s—
canceled an agreement for Hollis to perform at a weekly
variety show at Dante’s. In emailing Hollis to cancel her
performance, Faillace cited the suit against Sassy’s,
explaining his intent to protect Dante’s from legal liability.
After receiving Faillace’s email, Hollis amended the
complaint to allege that Faillace’s decision to bar Hollis
from performing at Dante’s constituted retaliation in
violation of the FLSA.
The district court granted summary judgment to the
defendants, reasoning that the FLSA only provides a private
right of action for retaliation committed by current
employers. In other words, the district court concluded that
Hollis must have been employed by Dante’s when Faillace
canceled Hollis’s scheduled performance to have a cause of
action for retaliation. We reverse.
In Arias v. Raimondo, we drew on the Act’s broad
language and remedial purpose to hold that the plaintiff
could bring an FLSA retaliation claim against his former
employer’s attorney for seeking to have him deported to
thwart his wage and hour lawsuit against the employer. 860
F.3d 1185, 1192 (9th Cir. 2017). In this opinion, we further
clarify the boundaries of the FLSA’s private right of action
HOLLIS V. R&R RESTAURANTS, INC. 5
for retaliation. While the Act requires an underlying
employment relationship, it covers retaliation committed by
the employer or “any person acting directly or indirectly in
the interest of an employer in relation to an employee.” 29
U.S.C. §§ 215(a)(3), 216(b), 203(d). In the context of
retaliation, the phrase “indirectly in the interest of an
employer” does not require an agency relationship with the
actual employer or the conferral of any direct benefit to the
employer.
I.
Because we review the district court order granting the
defendants’ summary judgment motion, we recount the facts
in the light most favorable to Hollis. See Sandoval v. Cnty.
of San Diego, 985 F.3d 657, 662 (9th Cir. 2021).
Hollis prefers the gender-neutral pronouns “they” and
“them,” so we follow that preference throughout this
opinion. Hollis danced at Sassy’s approximately three to five
times a week from June 2017 until March 2019, pursuant to
a contract purporting to designate them an independent
contractor. No special training, licenses, experience, or skills
were required to dance at Sassy’s, although dancers briefly
auditioned for a manager. A manager provided Hollis with a
weekly schedule every Sunday, based partly on Hollis and
the other dancers’ interest and availability. Hollis was
allowed to work for other clubs during the same period and
did so for a couple of months.
Sassy’s controlled customer entry, set minimum prices
for dances, required dancers to rotate between the stage and
the floor, and hired and managed DJs, bartenders, and
bouncers. Sassy’s controlled the music, although Hollis and
the other dancers could make selections from a list of pre-
approved songs when no DJ was present. Sassy’s required
6 HOLLIS V. R&R RESTAURANTS, INC.
dancers on stage to remove their clothing in a specified
order: “teasing” during the first song, removing their top
during the second, and removing their bottoms during the
third. Sassy’s set minimum prices that dancers could charge
for certain dances and required customers to tip dancers on
stage at least one dollar, although the one-dollar rule was
often not enforced.
Hollis’s labor at Sassy’s was governed by a robust set of
rules, violations of which could result in termination. For
example, dancers had to maintain their hair, makeup, and
physical appearance to certain standards, and Hollis’s
schedule was reduced because they chose to wear their
natural hair instead of a wig. Other rules concerned dancers’
interactions with customers, requiring that any issues or
disputes be handled only by security or bar staff, as well as
dancers’ handling of money, requiring them to keep one-
dollar bills in bundles of twenty.
Hollis was required to pay “house fees” to Sassy’s for
each shift. Hollis and the other dancers also tipped the club
bartenders, DJs, and bouncers, who would “make working
[there] miserable” otherwise. Hollis, however, did not pay
for any dance poles, facilities, utilities, advertising or other
bills for Sassy’s, nor did Hollis have management
responsibilities.
On two occasions, Hollis also performed a pole dance at
a weekly variety showcase called “Sinferno Cabaret,” hosted
by an adult entertainment club called Dante’s. On June 22,
2021, Hollis received an email confirming their scheduled
slot to perform at Dante’s for a third time, on July 25. The
email also solicited Hollis’s requests for future performance
slots at Dante’s.
HOLLIS V. R&R RESTAURANTS, INC. 7
Six days later, Hollis filed a collective action under 29
U.S.C. § 216(b) against R&R Restaurants, Stacy Mayhood,
and Ian Hannigan—the business entity that operates Sassy’s
and two of its owner-managers—alleging that Sassy’s
misclassified its dancers as independent contractors instead
of employees to avoid paying minimum wage and overtime.
The complaint also alleged that the defendants were taking
illegal kickbacks in the form of “house fees” and unlawfully
retaining dancers’ tips.
On July 19, 2021, Faillace emailed Hollis to cancel their
scheduled performance at Dante’s, citing the lawsuit against
Sassy’s. In pertinent part, the email read:
As you may or may not remember, I am one
of the partners in Sassy’s. A few days ago we
were served papers there for a class action
lawsuit, of which you are the primary
plaintiff.
That makes things complicated. Especially
since it is regarding the claim of being an
employee versus an independent contractor
as stated in the contract with Sassy’s. Since
you would be performing at Dante’s as an
independent contractor, that puts another
business that I’m a partner in at risk for a
lawsuit. Therefore, we have been strongly
advised to not have you perform at Dante’s.
The email goes on to explain that the decision was unrelated
to Hollis’s activism concerning racial and cultural bias at
strip clubs. Rather, Faillace expressed “shar[ing] most of
[Hollis’s] goals.” “But when it comes to performers being
independent contractors versus employees, we disagree.” He
8 HOLLIS V. R&R RESTAURANTS, INC.
wrote that “[t]his is a serious lawsuit [for] which the legal
bills alone . . . could easily put Sassy’s (or any of our other
clubs) out of business.” Finally, he wrote, “I’m sorry that
you won’t be able to perform at Dante’s, and I’m sorry that
this has ended up this way.”
Weeks later, Hollis amended the complaint. The First
Amended Complaint (“FAC”) added Faillace to the
misclassification and wage-related claims at Sassy’s and
alleged that Faillace’s cancellation of Hollis’s scheduled
performance at Dante’s constituted retaliation in violation of
the FLSA and Oregon state law. The defendants filed a
motion for summary judgment and, after the district court
initially held the motion in abeyance to accommodate
discovery disputes, filed a renewed motion for summary
judgment.
On November 2, 2023, a magistrate judge issued
findings and recommendations on the defendants’ summary
judgment motion. He found that Hollis’s wage-related
claims were barred by the applicable statute of limitations.
He also concluded that although Hollis’s FLSA retaliation
claim against Faillace was timely, it “fail[ed] as a matter of
law” because undisputed evidence showed that Hollis was
“not an employee of Dante’s or Faillace’s at the time of the
alleged retaliation.” Lastly, because there were no other
remaining federal-law claims, the magistrate judge
recommended dismissing the state-law retaliation claims
without prejudice.
On March 26, 2024, the district court adopted the
magistrate judge’s findings and recommendations in full and
granted the defendants’ summary judgment motion.
Notably, the district court adopted the magistrate judge’s
determination that Hollis could not bring a successful
HOLLIS V. R&R RESTAURANTS, INC. 9
retaliation claim without establishing “that [they were] an
employee of Dante’s.” On appeal, Hollis challenges only the
district court’s decision on the FLSA retaliation claim.
II.
We review de novo a district court’s grant of summary
judgment. Van Patten v. Vertical Fitness Group, LLC, 847
F.3d 1037, 1041 (9th Cir. 2017). “Summary judgment is
appropriate only when ‘there is no genuine issue as to any
material fact and the movant is entitled to judgment as a
matter of law.’” Id. (quoting Fed. R. Civ. P. 56(a)). The party
seeking summary judgment bears the burden of
demonstrating the absence of a genuine issue of material
fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986).
III.
We first hold that the district court erred in requiring
Hollis to establish that an employee-employer relationship
existed with Dante’s at the time of the alleged retaliation.
The defendant in an FLSA retaliation action need not be the
actual employer and the plaintiff need not have been
employed by the actual employer when the retaliation
occurred. See Arias, 860 F.3d at 1191–92. Rather, the
defendant need only have “act[ed] . . . indirectly in the
interest of an employer in relation to an employee” in
committing the alleged retaliation. 29 U.S.C. § 203(d).
Faillace’s undisputed conduct satisfies this requirement.
Next, an FLSA retaliation claim requires an underlying
employment relationship, see id. §§ 215(a)(3), 216(b)
(referencing “an employee”), but the employee-employer
relationship at issue here is the one between Hollis and
Sassy’s, over which Hollis filed this lawsuit and was
subsequently subjected to retaliation. We leave it to the
10 HOLLIS V. R&R RESTAURANTS, INC.
district court to determine on remand whether Hollis’s work
at Sassy’s satisfied our “economic realities” test for
establishing employee status. See, e.g., Torres-Lopez v. May,
111 F.3d 633, 639 (9th Cir. 1997). In ascertaining whether
Hollis was an employee of Sassy’s, it is not relevant that any
FLSA wage and hour claims based on the alleged
misclassification are time-barred.
Finally, we leave to the district court or trier of fact to
determine on remand whether Faillace’s acts in canceling
Hollis’s scheduled performance and barring them from
future work at Dante’s constituted retaliation. The
defendants argue that Faillace was merely protecting his
business interests at Dante’s from a similar lawsuit by Hollis,
but this argument fails. An FLSA defendant cannot be
allowed to take retaliatory actions against an FLSA plaintiff
to limit legal liability created by the defendant’s alleged
violations of the Act.
We discuss each of these issues below.
A.
The district court concluded that a claim under the FLSA
retaliation provision, 29 U.S.C. § 215(a)(3), requires the
plaintiff to have been employed by the retaliator at the time
of the retaliation. Not so. Interpreting § 215(a)(3) in Arias,
we held that an employee may bring a retaliation claim
(1) against individuals other than the actual employer (2) for
retaliatory conduct that occurred after the employment
terminated. See 860 F.3d at 1192. Faillace argues that he
nonetheless cannot be held liable because he was not acting
as an agent of Sassy’s in terminating the agreement for
Hollis to perform at Dante’s. But the statute only requires
Faillace to have been acting “indirectly in the interest of”
Sassy’s. See 29 U.S.C. § 203(d). Hollis argues that Faillace
HOLLIS V. R&R RESTAURANTS, INC. 11
satisfied this requirement by terminating the agreement for
Hollis to perform because of the lawsuit they filed against
Sassy’s.
The relevant statutory text provides: “it shall be unlawful
for any person . . . to discharge or in any other manner
discriminate against any employee because such employee
has filed any complaint or instituted or caused to be
instituted any proceeding under or related to this chapter.”
Id. § 215(a)(3). Section 216(b) then creates a private right of
action against any “employer” who violates § 215(a)(3), and
§ 203(d) defines “employer” to include “any person acting
directly or indirectly in the interest of an employer in relation
to an employee.”
In Arias, we held that the employer’s attorney,
Raimondo, could be held liable for retaliating against his
client’s former employee, Arias. 860 F.3d at 1187, 1192.
Arias, who was undocumented, sued his former employer for
workplace violations, including the failure to provide
overtime pay and breaks for rest and meals. Id. at 1187. As
the case approached trial, Raimondo repeatedly contacted
U.S. Immigration and Customs Enforcement (“ICE”) to seek
Arias’s deportation. Id. at 1187–88. In holding that Arias had
stated a viable FLSA retaliation claim against Raimondo, we
emphasized the statute’s “remedial and humanitarian”
purpose. Id. at 1192 (quoting Tenn. Coal, Iron & R.R. Co. v.
Muscoda Local No. 123, 321 U.S. 590, 597 (1944)). We also
emphasized the FLSA’s broad definition of “employer” as
evincing clear congressional intent to extend the reach of
§ 215(a)(3) beyond “actual employers.” Id. at 1191–92.
Drawing on the analogous domain of Title VII, we explained
that a rule limiting retaliation claims to adverse employment
actions would frustrate the purpose of the statute because
employers could “effectively retaliate against an employee
12 HOLLIS V. R&R RESTAURANTS, INC.
by taking actions not directly related to his employment.” Id.
at 1191 (quoting Burlington N. & Santa Fe Ry. Co. v. White,
548 U.S. 53, 63 (2006)).
In sum, while the FLSA retaliation provision only
protects employees, Arias held that the employment
relationship need not be current, the retaliator need not be
the actual employer, and the retaliation need not take the
form of an adverse employment action.
It is undisputed that Faillace was an owner and manager
of Sassy’s and that Hollis cannot prevail on the retaliation
claim unless they were employed by Sassy’s. Assuming that
Hollis establishes an employer-employee relationship with
Sassy’s on remand, Faillace was Hollis’s employer under the
relevant legal standard. Defendants nonetheless argue that
Faillace was not acting as Sassy’s agent when he emailed
Hollis to cancel the performance agreement at Dante’s.
Rather, they assert that “Faillace acted solely in his capacity
as the proprietor of Dante’s” in barring Hollis from
performing there. But this argument misunderstands the
statute, which does not require that the retaliator directly
benefit the actual employer nor act under that employer’s
instructions to be considered an “employer” under 29 U.S.C.
§ 203(d). Rather, the FLSA only requires that the retaliator
act “indirectly in the interest of an employer in relation to an
employee.” Id.
The FLSA defines “employer” to include (1) the actual
employer, (2) persons acting “directly in the interest” of that
employer, and (3) persons acting “indirectly in the interest”
of the employer. See id. As noted above and like other courts,
we identify the actual employer or employers through an
economic realities test. See, e.g., Torres-Lopez, 111 F.3d at
639. The second category, consisting of persons acting
HOLLIS V. R&R RESTAURANTS, INC. 13
“directly in the interest” of the employer, is also
conceptually straightforward. For example, in Arias,
Raimondo acted directly in the interest of Arias’s former
employer because he was the employer’s attorney and agent,
and because deporting Arias would have directly benefited
the employer by impeding Arias’s lawsuit. See 860 F.3d at
1187. In that scenario, Raimondo was retained by the
employer to defend against the very lawsuit that his
retaliatory actions would have thwarted. Id.
To act “indirectly in the interest” of the employer must
then capture some lesser nexus than the nexus between
Raimondo and Arias’s former employer. Even if Faillace
were not an owner-manager of Sassy’s, his conduct would
fit into this third category. The defendants argue that Faillace
did not act to directly benefit Sassy’s nor did he act as an
agent of Sassy’s, but, under the statute, Hollis did not need
to establish that he acted in such a manner. Hollis only
needed to show that Faillace acted indirectly in the interest
of Sassy’s via the allegedly retaliatory conduct. Hollis
adequately alleged that Faillace did so by cancelling the
agreement for Hollis to perform at Dante’s because of
Hollis’s lawsuit against Sassy’s. This constituted an indirect
effort to minimize any liability of Sassy’s as well as Dante’s.
Moreover, Faillace’s action allegedly penalized Hollis for
filing the lawsuit and would dissuade a reasonable person in
Hollis’s position from filing a lawsuit in the first place. To
satisfy the low bar of “acting indirectly in the interest of [the]
employer,” there is no requirement that Faillace act under
instructions from the rest of the Sassy’s partners or confer a
direct benefit on Sassy’s.
In defining an employer to include “any person acting
directly or indirectly in the interest of the employer in
relation to an employee” Congress ensured that a private
14 HOLLIS V. R&R RESTAURANTS, INC.
right of action for retaliation under 29 U.S.C. § 216(b) would
reach any defendant who violated the statute’s prohibition
on retaliating against an employee because of their protected
activity. This interpretation conforms with our observation
in Arias that the statutory definition of “employer” has a
“clear[]” broadening effect. 860 F.3d at 1191–92. Moreover,
the language referring to “any person acting directly or
indirectly in the interest of the employer” was included when
the Act was enacted in 1938 and stayed in place when the
definition of “employer” was amended in 1974. See Fair
Labor Standards Act of 1938, Pub. L. No. 75-718, § 3, 52
Stat. 1060; Fair Labor Standards Amendments of 1974, Pub.
L. No. 93-259, § 6, 88 Stat. 55, 58. It was not a congressional
accident or relic, but carries a specific meaning which we
must recognize. 1
B.
As we noted above, the FLSA only protects
“employees.” See 29 U.S.C. § 215(a)(3) (prohibiting
discrimination “against any employee because such
employee has filed any complaint . . . related to this
chapter”); see also Arias, 860 F.3d at 1190 (“[A] person who
1
Other courts have noted that the FLSA’s prohibition on retaliation
under § 215(a)(3) extends to “any person,” while the private right of
action under § 216(b) only reaches an “employer.” See Kim v. Lee, 576
F. Supp. 3d 14, 27–28 (S.D.N.Y. 2021), aff’d, No. 22-61, 2023 WL
2317248 (2d Cir. Mar. 2, 2023). But this difference does not appear to
indicate congressional intent to limit the possible defendants in a private
action. Rather, it reflects the fact that a private right of action under
§ 216(b) only extends to activities closely related to an employer
(violations of wage and hour, retaliation, and tip retention provisions),
while the list of prohibitions under § 215(a) also includes activities
unrelated to the employer (e.g., prohibiting commerce involving goods
produced in violation of the FLSA). Compare 29 U.S.C. § 215(a) and id.
§ 216.
HOLLIS V. R&R RESTAURANTS, INC. 15
never worked for the employer . . . does not fit anywhere in
the FLSA.”). Because Hollis claims that Faillace retaliated
against them for filing a protected complaint concerning
their employment at Sassy’s, they must establish an
employment relationship with Sassy’s.
1.
The defendants argue that Hollis cannot establish an
employer-employee relationship with Sassy’s because any
misclassification claims are time-barred. This is patently
incorrect. There is nothing in the FLSA’s text or purpose that
requires plaintiffs who were misclassified as independent
contractors to prevail on a misclassification claim as a
predicate condition to bringing a retaliation action or claim.
Rather, the meaning of the word “employee” is defined by
the Act and well developed by our precedents. 29 U.S.C.
§ 203(e), (g); see, e.g., Torres-Lopez, 111 F.3d at 638–39.
Under 29 U.S.C. § 203(e), “‘employee’ means any
individual employed by an employer.” Section 203(g)
further advises that “‘[e]mploy’ includes to suffer or permit
to work.” To determine whether an individual is an
employee or an independent contractor under the FLSA, this
court has applied the economic realities test, which provides
that “employees are those who as a matter of economic
reality are dependent upon the business to which they render
service.” Real v. Driscoll Strawberry Assocs., Inc., 603 F.2d
748, 754 (9th Cir. 1979) (quoting Bartels v. Birmingham,
332 U.S. 126, 130 (1947)). In applying the economic
realities test, we consider all factors relevant to the
circumstances of the case. Torres-Lopez, 111 F.3d at 639.
16 HOLLIS V. R&R RESTAURANTS, INC.
We have previously outlined nonexhaustive factors
relevant to identifying an employment relationship for FLSA
purposes. For instance, in Real, we considered:
1) the degree of the alleged employer’s right
to control the manner in which the work is to
be performed;
2) the alleged employee’s opportunity for
profit or loss depending upon his managerial
skill;
3) the alleged employee’s investment in
equipment or materials required for his task,
or his employment of helpers;
4) whether the service rendered requires a
special skill;
5) the degree of permanence of the working
relationship; and
6) whether the service rendered is an integral
part of the alleged employer’s business.
603 F.2d at 754. And in Bonnette v. California Health and
Welfare Agency we considered whether the employer
“(1) had the power to hire and fire the employees,
(2) supervised and controlled employee work schedules or
conditions of employment, (3) determined the rate and
method of payment, and (4) maintained employment
records.” 704 F.2d 1465, 1470 (9th Cir. 1983).
Only economic realities determine employee status, not
the intent of the parties or contractual characterizations. See
Real, 603 F.2d at 755. “The ultimate determination must be
based ‘upon the circumstances of the whole activity.’”
Bonnette, 704 F.2d at 1470 (quoting Rutherford Food Corp.
v. McComb, 331 U.S. 722, 730 (1947)). As long as Hollis
HOLLIS V. R&R RESTAURANTS, INC. 17
can show that their work at Sassy’s satisfied the economic
realities test, then it is no obstacle to their retaliation action
that any misclassification claim is time barred.
Another feature of the FLSA also supports our
understanding that a plaintiff need not prevail on a
misclassification claim to establish an employer-employee
relationship. The FLSA explicitly protects individuals from
retaliation for “fil[ing]” a complaint. 29 U.S.C. § 215(a)(3).
That complaint need not result in a favorable judgment. In
fact, the Supreme Court has interpreted § 215(a)(3)’s
reference to “fil[ing] any complaint” to protect complaints
that are merely informal and oral in nature. See Kasten v.
Saint-Gobain Performance Plastics Corp., 563 U.S. 1, 17
(2011). Imposing a requirement that the plaintiff be
successful in separate litigation on the underlying protected
complaint is therefore inconsistent with the Supreme Court’s
interpretation of the FLSA’s requirements for maintaining a
retaliation claim.
Finally, the defendants argue that “the FLSA statute of
limitations bars all aspects of a claim, including any
underlying argument supporting it.” But the defendants do
not support this argument with any relevant authority. The
statute of limitations on a legal claim for damages does not
bar a plaintiff from asserting the truth of that claim as a
factual matter in order to prevail in a separate action or claim
that is not time barred.
2.
Because the district court did not decide whether Hollis’s
work at Sassy’s satisfied the economic realities test, we
remand that issue so that the court may address it in the first
instance or allow any material factual disputes to be resolved
by the trier of fact. See Bonnette, 704 F.2d at 1469 (noting
18 HOLLIS V. R&R RESTAURANTS, INC.
that whether a party is an “employer” for FLSA purposes is
a legal question).
Several of our sister circuits have applied the economic
realities test to find that exotic dancers were employees of
the clubs where they worked. Because these courts applied
factors similar or identical to those outlined in Real and
evaluated circumstances closely mirroring Hollis’s work
arrangement at Sassy’s, they may provide some guidance to
the district court on remand. See, e.g., McFeeley v. Jackson
St. Ent., LLC, 825 F.3d 235, 241–44 (4th Cir. 2016); Verma
v. 3001 Castor, Inc., 937 F.3d 221, 229–32 (3d Cir. 2019);
Reich v. Circle C. Invs., Inc., 998 F.2d 324, 326–29 (5th Cir.
1993); see also Harris v. Diamond Dolls of Nevada, LLC,
521 F. Supp. 3d 1016, 1023–24 (D. Nev. 2021). However,
the economic realities test is fact-bound, requiring
application of all relevant factors to the particular facts of the
plaintiff’s work arrangement. Torres-Lopez, 111 F.3d at 639.
We express no views on the merits of this issue.
C.
Because we remand this case to the district court for
further proceedings, we address a final issue that the
defendants raise in support of the district court’s judgment.
Namely, the defendants contend that Faillace’s conduct in
canceling Hollis’s scheduled performance at Dante’s and
refusing to contract with Hollis for further performances
there did not constitute retaliation as a matter of law because
it was a legitimate business decision to limit Dante’s’
liability. Taking the facts in the light most favorable to Hollis
at this stage of the proceedings, we disagree.
HOLLIS V. R&R RESTAURANTS, INC. 19
1.
The FLSA states that “it is unlawful for any person . . .
to discharge or in any other manner discriminate against” a
current or former employee because they “filed any
complaint . . . under or related to” the FLSA. 29 U.S.C.
§ 215(a)(3). The retaliatory conduct need not be limited to
adverse employment action, and instead covers “adverse
action” more generally. See Arias, 860 F.3d at 1190–91; see
also Darveau v. Detecon, Inc., 515 F.3d 334, 341–43 (4th
Cir. 2008) (A plaintiff asserting FLSA retaliation must show
that “(1) he engaged in an activity protected by the FLSA;
(2) he suffered adverse action by the employer subsequent to
or contemporaneous with such protected activity; and (3) a
causal connection exists between the employee’s activity
and the employer’s adverse action.”). The statutory language
is broad, covering “any other manner” of discrimination
against the complaining employee. 29 U.S.C. § 215(a)(3).
Conduct constitutes retaliation if it is “harmful to the point
that [it] could well dissuade a reasonable worker from
making or supporting a charge of discrimination.”
Burlington N. & Santa Fe Ry. Co., 548 U.S. at 57 (stating
the standard in the analogous Title VII context).
Conduct that violates the FLSA anti-retaliation provision
includes soliciting the former employee’s deportation by
ICE, Arias, 860 F.3d at 1187–88, as well as informing a
prospective employer that an employee had filed a complaint
with the Department of Labor, Dunlop v. Carriage Carpet
Co., 548 F.2d 139, 141, 147 (6th Cir. 1977). We have also
held that the refusal to renew time-limited employment
contracts constituted retaliation in analogous contexts. See
MacIntyre v. Carroll Coll., 48 F.4th 950, 954–55 (9th Cir.
2022) (holding that nonrenewal of a golf coach’s limited-
term employment contract constituted retaliation under Title
20 HOLLIS V. R&R RESTAURANTS, INC.
IX); see also Perry v. Sindermann, 408 U.S. 593, 596–98
(1972) (holding that nonrenewal of a nontenured professor’s
one-year contract could constitute retaliation for protected
speech).
Finally, at least one district court has ruled that a plaintiff
stated a valid FLSA retaliation claim where “the alleged
retaliation consists of the employer’s refusal to provide its
former employee work as an independent contractor, work
that the employer was not contractually obligated to provide,
but which the employer indicated would be provided.”
Boscarello v. Audio Video Sys., Inc., 784 F. Supp. 2d 577,
578–79 (E.D. Va. 2011). As the summary judgment record
shows, Hollis had contracted to perform at Dante’s Sinferno
Cabaret in the past, was scheduled to perform at least once
more, and reasonably expected to be able to continue to do
so in the future.
Canceling a scheduled work agreement and barring a
worker from future contract opportunities cuts the worker off
from an income source. It deprives the worker of funds they
would otherwise have been able to earn. Refusing to contract
with a worker is not categorically less likely to dissuade that
worker from making a complaint than termination or
demotion. On this record, a trier of fact could reasonably find
that Faillace’s actions were sufficiently harmful to constitute
retaliation.
2.
The defendants argue that Faillace’s email to Hollis
canceling the performance agreement and barring them from
future performances at Dante’s constituted a legitimate
business decision to protect Dante’s from legal liability. As
evidence in support of this theory, the defendants point out
HOLLIS V. R&R RESTAURANTS, INC. 21
that Hollis was allowed to continue to provide trainings for
the staff of Dante’s and Faillace’s other clubs.
But this argument—that the cancellation of the
performance agreement constituted a “reasonable, protective
decision in the absence of legal certainty”—makes little
sense. Hollis had already worked at Dante’s twice and there
was no reason that a third session would meaningfully
increase the club’s legal exposure. Moreover, Hollis’s work
at Dante’s was not under the same terms as their work at
Sassy’s. At Dante’s, they performed one brief pole dance
within a predesignated time slot during a weekly variety
showcase. At Sassy’s, they danced for hours, multiple times
a week, subject to the club’s rules for exotic dancers, who
were the main business of that club.
Although employers are not liable for adverse actions
motivated by legitimate, nonretaliatory business reasons,
such reasons usually include the employee’s performance or
the needs of the business. See, e.g., Knickerbocker v. City of
Stockton, 81 F.3d 907, 911 (9th Cir. 1996). The defendants
cite no case establishing that an adverse action can be taken
against a former employee because of that employee’s
protected complaint as long as the action was motivated by
the desire to avoid future litigation or increased liability from
the same employee.
Indeed, a rule allowing employers to evade liability for
FLSA retaliation by claiming that they were merely
minimizing legal exposure to serve the financial interests of
their business would severely weaken the statutory
protection. For instance, it would suggest that firing an
individual complaining of minimum wage violations is a
justified business decision because it limits the backpay or
liquidated damages that the employee might recover in a
22 HOLLIS V. R&R RESTAURANTS, INC.
wage and hour suit. FLSA-covered employers cannot take
adverse actions against FLSA plaintiffs and then avoid
retaliation liability by explaining those actions as attempts to
limit legal exposure created by their alleged violations of the
Act. In other words, a financial interest in minimizing
liability does not justify bald retaliation.
IV.
We reverse the district court’s order granting summary
judgment to the defendants and remand for further
proceedings consistent with this opinion. By their text, the
FLSA provisions conferring a private right of action for
retaliation, 29 U.S.C. §§ 215(a)(3), 216(d), and 203(d), do
not require that the plaintiff be a current employee of the
retaliator, but merely require that the retaliator act
“indirectly in the interest of” the plaintiff’s former employer
in relation to the plaintiff. Faillace’s conduct satisfies this
requirement. On remand, the district court must determine
whether Hollis was an employee of Sassy’s and whether
Faillace’s conduct constituted retaliation in violation of the
Act. In light of the foregoing, the state law claims are
reinstated and can also be addressed on remand.
REVERSED AND REMANDED for further
proceedings consistent with this opinion.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ZOE HOLLIS, individually and on No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ZOE HOLLIS, individually and on No.
02R&R RESTAURANTS, INC, an OPINION Oregon corporation doing business as Sassy's; STACY MAYHOOD; IAN HANNIGAN; FRANK FAILLACE, Defendants - Appellees.
03Simon, District Judge, Presiding Argued and Submitted July 8, 2025 Seattle, Washington Filed November 18, 2025 Before: M.
04SUMMARY * Fair Labor Standards Act The panel reversed the district court’s summary judgment in favor of defendants on a retaliation claim under the Fair Labor Standards Act and remanded for further proceedings.
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ZOE HOLLIS, individually and on No.
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