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A waitress at a diner sued for sexual harassment. The employer argued that it had fewer than 15 employees and was thus not subject to Title VII. Whether the diner had the requisite number of employees depended on whether the two managers in charge of the diner were "employees." The diner is owned by a woman who is the sole proprietor. However, she has delegated virtually all responsibility for the operation of the restaurant to these two managers. Without the owner's input, the managers decide who to hire and fire, work schedules, work rules, and all of the other operational decisions of the restaurant. The two managers do not have ownership interests in the restaurant (although one is married to the sole proprietor) or hold positions as board members (there is no board).
Should the two managers be counted as employees? Defend your position. (Castaways Family Diner, 453 F.3d 971 (7th Cir. 2006).
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