Courts examine the economic realities of the working relaitonship, including:

1. Nature degree o control 
2. Opportunity for profit, loss
3. Investment in equipment 
4. Special Skill
5. Permanency, duration
6. Service Integral to business
7. Dependence

Facts:  Migrant workers handpicked the pickles and wanted to claim FLSA rights. Lauritzen Farms gave them free housing and equipment to do the work but the workers used their own gloves.

Holding: They ruled that the migrant workers were in fact employees 

Reasoning: The definition of employee is broad and means "to suffer or permit to work", thus the migrant workers after applying the economic reality test have the majority of factors that tip in their favor. The concurring judge who also agreed with the majority said we should look soley to the FLSA definition of employee

Rule Used: Economic reality test AND definition of employee

NAN v. Liberty Apparel

Facts:  The company hired contractors whose workers( garment workers) claimed that the company is a joint employer with the contractor so they can reap FLSA benifits, they claim this becasue they:

1.  Work a line job
2. Their job was integral to the business
3. They were supervised by the manufactureres agents

Rules:

1. The circumstances of the whole must be considered in light of economic reality

- 6 factor test:

1. Whether the premises and equipment were used for the P. work
2. Whether the Corporation had a business that could or did shift as a unit from one putative joint employer to another
3. The extent to which the plantiffs performed a discrete line job that was integral to Libertys process of production
4. Whether responsibility under the contracts could pass from one subcontractor to another w/o material changes
5. The degree to which the D. or their agents supervised P. work 
6. Whether the P. worked exclusively or predominently for the Liberty D.'s

Holding: To affirm a joint relationship exist between a contractor and a company "the circumstances of the whole" must be considered in light of economic reality to apply FLSA rules

Conclusion: The P. won and the Liberty apparel company ARE joint employers with the contractors.

The "circumstances of the whole" must be considered in light of economic reality to apply FLSA rules 

- 6 factor test:

1. Whether the premises and equipment were used for the P. work
2. Whether the Corporation had a business that could or did shift as a unit from one putative joint employer to another
3. The extent to which the plantiffs performed a discrete line job that was integral to Libertys process of production
4. Whether responsibility under the contracts could pass from one subcontractor to another w/o material changes
5. The degree to which the D. or their agents supervised P. work 
6. Whether the P. worked exclusively or predominently for the Liberty D.'s

1.       The definition of “permanent employment” is:

a.       Unless the party states that the employment shall be “permanent” the law implies that the relationship will be at will  2. When an employee PURCHASES his job the employee will be a PERMANENT employee for as long as the business is open and the employee is willing to do his work well.

a.       This shall be held when an employee has VALUABLE CONSIDERATION outside of his regular work duties

b.      When an employee furnishes consideration in addition to his employment

Contracts should be interpreted to ascertain the parties objective intent which requires the examination of :

1. Purpose underliying the contract
2. surrounding circumstance (If parties have different intent the intent of one party which is known by the other party controls)

• Contracts hsould be interepreted in a way that considers every term , general wording, as part of the whole and NOT in isolation
• A bilateral contract consist of a promise made by one party (offer) in exchange for the promise of the other party(acceptance)
• A unilateral contract consist of only ONE promise made by ONE party (offeror, and this promise invites the other partys PERFORMANCE to serve as acceptance vs. a return promise
• An offeror may revoke an offer at any time PRIOR to acceptance
• A UNILATERAL offer is accepted when performance is complete

Classical Test: Benifit to the promisor OR detriment to the promisee (SOME courts require both benifit and detriment)

1. A benefit is a right , interest of profit accruing to one party 
2. A detriment consist of a forbearance, detriment , loss or responsibility given or undertaken by other party

• A contract will be found illegal if the breaching party is a participant in the illegal activity.
• In order to supply consideration to support a contract, the consideration must involve lawful activity.  
• A party does not supply valid consideration if that party does not agree to (or act to) restrict his lawful freedom of action