A New York lawsuit filed against John Catsimatidis, CEO and owner of New York-area grocery chain Gristede's, is attempting to clarify what an employer is and raises the question of who should be held liable for violations of the Fair Labor Standards Act.

TLNT reported that the New York Second U.S. Circuit Court of Appeals found that Catsimatidis was personally responsible for the violating the FLSA when he withheld overtime compensation and wrongly classified workers as exempt. The law firm of Jackson & Lewis cited the court's ruling that Catismatidis' actions and responsibilities over the control of wages, employee management and supervision in individual stores explained why he was designated as the employer under the provisions of the FLSA.

It was only after the Gristede CEO failed to meet the financial obligations outlined in a 2006 settlement that the plaintiffs from the original claim moved to bring judgment against Catsimatidis. The ruling highlights the importance of complying with federal time and attendance policies, as the case demonstrates that individuals within a company - instead of the organization - may be held responsible for unfair labor practices.

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