Case Explained: Changshan Li v. New Asia Chinese Restaurant Wan Da Inc., doing business as New Asia, doing business as New Asia Chinese Restaurant, doing business as New Asia Express Restaurant, doing business as New Asia Express Defendant Hong Sheng Lin

Court: United States Court of Appeals for the Eighth Circuit Filed: 2026-06-15 The eighth-circuit reversed the district court’s adverse judgment in this wage-and-hour action and remanded the case for further proceedings. The court held that the appellant, Changshan Li, qualified as an employee rather than an independent contractor under the Fair Labor Standards Act (FLSA), thereby entitling him to statutory protections. Applying a de novo standard of review to the legal classification and a clear error standard to factual findings, the court applied the economic realities test and determined that the factors weighed in favor of employee status. Specifically, the court found that delivery services were integral to the employer’s business, Li’s investment in his vehicle was not significant relative to the employer’s overall investment, and the employer exercised control over Li’s work by setting pay and delivery locations while requiring him to be on-call. Additionally, the court concluded there was no good cause to set aside the entry of default against the corporate defendant, noting that the determination of employee status necessitated this outcome. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.