Title VII and the Indiana Wage Payment Statute

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7^th Circuit Court of Appeals

Case Name: Alexis Wells v. Freeman Company

Case No.: 23-1320

Officials: Flaum, Easterbrook, and Brennan, Circuit Judges.

Focus: Title VII and the Indiana Wage Payment Statute

Wells, sought to hold her employer, The Freeman Company, accountable for sexual assault committed by a fellow employee, Timothy Vaughn. Wells argued that the company should be held liable under Title VII, the Indiana Wage Payment Statute, and various tort theories. However, the court upheld the district court’s decision, affirming that Wells was classified as an independent contractor, not an employee. This determination meant that Freeman’s actions were not legally actionable, and Vaughn’s misconduct could not be attributed to Freeman.

Applying the Knight factors, which assess the “economic realities” of the working relationship, the court analyzed whether Wells could be considered an employee under Title VII. After evaluating these factors, the court found that most indicators pointed towards Wells being an independent contractor. Consequently, her claims under Title VII and the Indiana Wage Payment Statute were dismissed. Additionally, the court rejected Wells’ state law claims for Intentional Infliction of Emotional Distress (IIED) and Negligent Infliction of Emotional Distress (NIED). It determined that Freeman’s pre-litigation actions were not sufficiently egregious to be deemed “atrocious” for IIED, and Vaughn’s behavior was deemed beyond the scope of his employment, precluding vicarious liability for Freeman.

Affirmed.

Decided 02/27/24

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