From labor disputes cases to labor and employment publications, for your research, you’ll find solutions on Bloomberg Law®. Protect your clients by developing strategies based on Litigation...
Oct. 3 — A baseball stadium concessions operator in Maryland is exempt from paying overtime, a federal appeals court ruled ( Hill v. Del. N. Cos. Sportservice, Inc. , 2d Cir., No. 15-2109, 10/3/16 ).
Delaware North Companies Sportservice Inc., which sells food, beverages and merchandise inside Oriole Park at Camden Yards, is covered by a Fair Labor Standards Act exemption for businesses engaged in amusement or recreational activities on a seasonal basis, Judge Barrington D. Parker wrote Oct. 3 for the U.S. Court of Appeals for the Second Circuit. The company doesn’t directly provide amusement or recreation, but its primary purpose is selling goods and services to enhance spectators’ experience during Baltimore Orioles games.
Delaware North conducts business in Oriole Park through its subsidiary, Maryland Sportservice Inc., and has similar operations at a number of professional and college sports venues. The ruling could affect overtime eligibility for concessions workers at its other locations.
In a statement provided to Bloomberg BNA Oct. 3, Delaware North Assistant General Counsel Michael McCabe said the company is analyzing to what extent the ruling has implications beyond its Maryland Sportservice operations.
The decision is the first time the Second Circuit has fielded the question of what sort of operations qualify an establishment for the exemption, Parker said. The court discussed the FLSA exemption in an August 2015 ruling but didn’t go into the issue of exemption qualifications.
Judges Rosemary Pooler and Debra Ann Livingston joined the opinion.
William Hill and Tanica Brown filed a lawsuit saying the company didn’t pay overtime when they worked more than 40 hours in a week. A lower court dismissed their claims under the FLSA’s amusement or recreation exemption.
The Second Circuit’s ruling means that exemption from overtime still applies if an amusement or recreation facility contracts out some of its operations. Maryland Sportservice qualifies for the amusement or recreation exemption because it operates under a concession agreement with a business that qualifies for the exemption.
Although Maryland Sportservice operates entirely within a baseball stadium, it conducts some business on non-game days. For example, it rents out lounges for private functions and opens its retail store to customers.
The volume on those days is too small relative to a typical day’s volume to change the analysis, the court said. Maryland Sportservice’s operation exists because of its concession agreement with the Orioles, so the exemption does too.
An attorney for the workers didn’t immediately respond to requests for comment.
Edwin David Hoskins of Albany, N.Y., and Gary Lynch and Jamisen Etzel of Carlson Lynch Sweet & Kilpela LLP in Pittsburgh, represented the workers. Robert Pritchard and Brian Hentosz of Littler Mendelson P.C. in Pittsburgh, represented DNC Sportservice.
To contact the reporter on this story: Jon Steingart in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Peggy Aulino at email@example.com
Text of the opinion is available at http://www.bloomberglaw.com/public/document/Hill_v_Delaware_North_Companies_Sport_Docket_No_1502109_2d_Cir_Ju.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)