Donovan V. Dial America Marketing Summary

Donovan v. Dial America Marketing, Inc. 757 F.2d 1376 (3d Cir.) (1985)
I. Facts
1. DialAmerica Marketing, Inc. is a telephone-marketing firm that operates in twenty states and maintains its principal place of business in Teaneck, New Jersey. A major aspect of DialAmerica's business is the sale of magazine renewal subscriptions by telephone to persons whose subscriptions have expired or ready to run out. They located subscribers' phone numbers by employing in-house researchers who would find numbers by consulting telephone books and calling directory-assistance or operators. The researcher would travel to DialAmerica's office in Teaneck and pick up cards, which contained the name and address of a subscriber whose telephone number was needed.
Alleging that DialAmerica was willfully compensating the home researchers and distributors at a rate below the minimum wage, in violation of 29 U.S.C. §§ 206, 215(a)(2), and that DialAmerica had willfully failed to keep adequate records of its employees' wages, hours, and other conditions of employment, in violation of 29 U.S.C. §§ 211, 215(a)(5). The Secretary requires DialAmerica from additional violation of the FLSA. By asking for the appropriate relief, including the payment of wages found to be due and owing. DialAmerica denied the Secretary's allegations, contending that its home researchers and distributors were not "employees" under the FLSA
IV. Rule
The court's letter opinion of January 26, 1984, includes some statements that are most accurately characterized as findings of fact. Examples of such findings by the court include statements that the home-research work at issue did not require a great investment nor much skill, presented little opportunity for profit or loss, and operated under the barest possible structure. Donovan v. DialAmerica Marketing, Inc., Civil No. 81-4020, letter op. at 7 (D.N.J. Jan. 26, 1984).
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