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FLSA Retaliation: Can Your Employer Kill Future Work?

by | Jan 8, 2026 | Employment Law, Federal Law Update, Retaliation, Wage: Overtime, Wrongful Termination |

Worker looking at a canceled work schedule reflecting lost income after retaliation.

When you complain about your overtime, missing pay, or being misclassified as an independent contractor, you expect a fair response. What you don’t expect is your employer quietly shutting the door on your future work by engaging in retaliation or wrongful termination. It happens more often than you’d think. Employers love to pretend these decisions are “business choices,” not retaliation. They count on workers being too confused or intimidated to push back. So, these wage theft employers run right over employees thinking that they’ll never stand back up on their own. The good news is that that employees do not have to because our lawyers are here to offer you an hand, pull you back to your feet, and take on the wage theft fight against your nasty employer.

With that in mind, we present you with the United States Court of Appeals for the Ninth Circuit’s recent decision in Hollis v. R&R Restaurants, Inc., 2025 WL 3212363. Zoe Hollis sued Sassy’s—a Portland strip club—for misclassifying dancers and violating wage and hour laws under the Fair Labor Standards Act (“FLSA”). That lawsuit triggered a chain reaction: a manager who also had authority at another business canceled Hollis’s upcoming work and blocked future opportunities, explicitly citing the lawsuit as the reason. Hollis amended their complaint to include retaliation under the FLSA.

The district court wrongly dismissed the retaliation claim on the theory that Hollis couldn’t sue because the dancers weren’t an “employee” of the second business. The Ninth Circuit reversed. It held that FLSA retaliation protections apply even when the employer doing the retaliation wasn’t your current employer. The Ninth Circuit held that “the defendant need not be the actual employer and the plaintiff need not have been employed by the actual employer when the retaliation occurred.” That’s a powerful reminder that retaliation often reaches beyond your immediate workplace.

The appellate court also held that Hollis could pursue retaliation even if their wage, overtime, and misclassification claims were time-barred. In the Ninth Circuit’s view, employers don’t get a free pass to retaliate just because the original pay claims are too old. As the Ninth Circuit held, “there is nothing in the FLSA’s text or purpose” that forces a worker to win a misclassification case before pursuing retaliation. This holding matters enormously for workers who have been misclassified for years and only later realize they were denied proper pay or overtime.

Let’s walk through what this decision means for real employees dealing with overtime violations, retaliation, and misclassification.

Can I Still Be An Employee Under FLSA When My Contract Says Independent Contractor?

Employers love waving around “independent contractor agreements” like they’re enchantments that magically erase your rights. But under the FLSA, labels don’t decide anything. The Ninth Circuit held that the only thing that matters is economic reality. In its words, “only economic realities determine employee status, not the intent of the parties or contractual characterizations.”

If that sentence doesn’t make employers sweat, it should.

In Hollis’s case, they worked three to five times a week, operated under strict rules about how to perform the work, followed dress and appearance standards, rotated through required tasks, and had their schedule determined by management. They also paid house fees and tipped support staff to avoid retaliation within the workplace itself. Meanwhile, the business set prices, controlled customer entry, and supervised the work environment.

When one side controls everything—including how you perform, when you perform, how you look while performing, and how you get paid—calling you an “independent contractor” is just wishful thinking. In the real world, employers misclassify workers to avoid paying overtime, minimum wage, and other rights employees should receive.

If your work looked like an employee’s work, the FLSA may treat you like one—no matter what your contract says.

Practical Tip: Keep copies of schedules, rule sheets, messages from managers, and anything showing control over your work. Those everyday details often make or break misclassification cases.

Best Wage Theft Attorney Blogs on Point:

Can My Employer Retaliate Against Me Under FLSA After I Sue For Unpaid Overtime Or Misclassification?

Retaliation is illegal—plain and simple. Employers like to package retaliation as “protecting the business,” “avoiding confusion,” or “restructuring.” The Ninth Circuit was not interested in those excuses. After Hollis filed the misclassification and overtime lawsuit, a manager canceled their upcoming work and referenced the lawsuit directly. That alone should have ended the debate.

The Ninth Circuit held that FLSA retaliation doesn’t require a current employment relationship. It doesn’t require termination. And it doesn’t require the retaliator to be your “traditional employer.” Retaliation under the FLSA covers any action “harmful to the point that it could well dissuade a reasonable worker from making or supporting a charge.” Cutting off someone’s income certainly fits.

Employers often think they’re clever by avoiding direct firing. Canceling work. Dropping shifts. “Pausing” opportunities. Pretending there’s a scheduling conflict. That’s retaliation by another name. As the Ninth Circuit emphasized, firing isn’t the only way to retaliate under employment law. What matters is the motive and the impact — not the format.

And motive wasn’t subtle here. The manager admitted he wanted to lower the business’s legal exposure. That honesty would be refreshing if it weren’t an admission of illegal retaliation. As the Ninth Circuit held, “a financial interest in minimizing liability does not justify bald retaliation.” Translation: you can’t punish an employee for suing you just because you’re afraid they’ll sue you again.

The Ninth Circuit also addressed a critical point that protects many workers: even if your pay and overtime claims are time-barred, you can still pursue retaliation. The Ninth Circuit held that a worker “need not prevail on a misclassification claim as a predicate condition to bringing a retaliation action.” In other words, employers don’t get to dodge accountability for retaliation and wrongful termination by arguing that the calendar ran out on the overtime claim.

Practical Tip: If you complain about your pay or overtime and suddenly your hours vanish, jobs disappear, or opportunities dry up, write down dates, names, and what changed. Retaliation tends to follow predictable patterns.

Best Wage and Hour Lawyer Blogs on Point:

Can I Sue If A Different Company Retaliate Against Me Because I Sued My First Employer Under FLSA?

Yes. And employers hate that this is true.

Workers often assume retaliation only counts if it comes from the company where they filed the pay complaint. That’s not how the statute works. FLSA defines “employer” so broadly that the Ninth Circuit described it as having a “clear broadening effect.” Under 29 U.S.C. § 203(d), an employer includes “any person acting directly or indirectly in the interest of an employer in relation to an employee.”

That phrase—indirectly in the interest—is why Hollis won this appeal.

The Ninth Circuit held that the manager’s cancellation of Hollis’s future work “constituted an indirect effort to minimize any liability” of the original employer. And because retaliation doesn’t require a current employment relationship, the fact that Hollis wasn’t actively working for the second business didn’t matter.

Employers can’t insulate themselves by using a different location, different entity, or different manager to do the dirty work. If the action harms the worker and relates back to the protected complaint, it falls under FLSA.

Best Wrongful Termination Law Firm Blogs on Point:

This is particularly important for workers in industries where people hop between locations or get gigs through overlapping owners or managers. The law recognizes that retaliation in these environments can be subtle but devastating.

Practical Tip: If someone connected to your employer cancels work right after your complaint, document the relationships. Courts care about those connections.

Can Canceling My Scheduled Work Count As Retaliation Under FLSA Even If I’m Not Wrongfully Fired?

Absolutely. And employers need to stop pretending otherwise.

The Ninth Circuit took the district court’s logic—which treated retaliation as something that only counts if you’re formally fired—and rejected it outright. The court held that refusing to contract with a worker is “not categorically less likely to dissuade” them from raising FLSA concerns than firing. Canceling scheduled work cuts off income just as effectively.

In Hollis’s case, they had performed multiple times and were scheduled for more. Their expectation of additional paid work was reasonable. The manager’s cancellation directly cut off an income stream. Under employment law, the question is whether the act would discourage a reasonable employee from asserting rights about overtime or pay. It definitely would.

The Ninth Circuit also highlighted how inconsistent the employer’s justification was. They argued they canceled Hollis’s work to protect from legal exposure, but Hollis had already worked there before without issue. The supposed “risk” magically appeared only after the lawsuit. That’s not a business decision—that’s retaliation dressed up in a flimsy excuse.

Practical Tip: Cancelled work, withdrawn opportunities, or blocked access to future income can all be retaliation. Don’t assume you need a firing to have a case.

Best FLSA Attorney Blogs on Point:

What Kind Of Lawyer Should I Call If My Employer Retaliates After I Complain About My Pay Or Overtime?

When an employer cuts off your work, your income, or your opportunities because you spoke up, you need an attorney who isn’t afraid to call the behavior what it is. Spitz, The Employee’s Law Firm is one of the largest firms in the United States focused solely on employee rights. That size matters. Employers take notice when they realize you’re backed by serious resources, seasoned attorneys, and a reputation for fighting hard.

Our attorneys have handled retaliation, misclassified worker, overtime, pay, and wrongful termination cases across the country. We have extensive trial experience and a long history of results for workers who employers thought would stay quiet. We also understand how personal and stressful these situations are. When you’re cut off from work, it hits your paycheck and your confidence. We get that. And we don’t let employers get away with it.

We offer a free initial consultation and a no-fee guarantee, meaning you don’t pay unless we win. If you believe your employer retaliated after you complained about your overtime, pay, or misclassification, call Spitz today. The sooner you act, the sooner we can protect your rights and start pushing back.

Employment Lawyer Disclaimer

This wage theft blog provides general information about employment law, overtime, pay, misclassified workers, FLSA rights, retaliation, wrongful termination, and related issues. It is not legal advice. You should consult directly with a qualified employment lawyer or attorney to get advice tailored to your wage and hour situation. No promises or guarantees are being made. This blog is a legal advertisement and reading it does not create an attorney-client relationship. If you believe you were wrongfully fired, retaliated against, denied overtime, or misclassified by your employer, reach out to an attorney who can evaluate your case.