Steve Asmussen's Kentucky racing operation was dealt a dual setback by the U.S. Sixth Circuit Court of Appeals when it affirmed a U.S. Department of Labor claim against the trainer and sent a second claim back to a lower court for further handling.
The Dec. 22 ruling, first reported by Horse Racing Nation, denied Asmussen's appeal of a decision by the U.S. District Court for the Western District of Kentucky that Asmussen and his stable, KDE Equine, failed to pay employees overtime wages of $211,541.76 in 2012 and 2013. At the time, the stable had between 120 and 150 employees nationwide.
The Court of Appeals also reversed a lower court ruling granting summary judgment in favor of Asmussen against DOL's claim that the stable's violations were willful and sent the issue back to the lower court for trial.
A finding of willful violation would give the DOL a three-year lookback on the violation period, which would include 2014, and entitle employees to liquidated damages equaling the amount of actual damages. Unless the case is settled, Asmussen will be exposed to the risk of a third year of actual damages and three years of liquidated damages.
In 2019, Asmussen's stable was subjected to a separate DOL claim in federal court for its operations in New York. The case was settled in 2021 when the trainer consented to pay $563,800 in back wages and liquidated damages to affected employees.
