Brantley v. INSPECTORATE AMERICA CORP.
2011 U.S. Dist. LEXIS 128785
| S.D. Tex. | 2011Background
- Inspectorate paid inspectors using the fluctuating work week (FWW) method and premiums for offshore work, days off, and holidays, with premiums added to base pay and overtime calculated from the week’s average rate.
- Plaintiff Brantley and a proposed class allege FLSA violations for insufficient overtime wages and improper record-keeping, seeking collective action status and damages.
- Defendant began transitioning away from FWW in 2006, but payroll and handbook materials described FWW and included examples of its calculation.
- Defendant imposed salaried deductions for sick and vacation leave during the first 90 days, and the handbook described deductions for shortfalls in accrual, which plaintiffs challenged as impermissible under FWW.
- DOL audits between 2000 and 2009 produced mixed results on premiums but did not address the specific deduction policies at issue; there is no evidence of attorney-approved practices.
- The court certified the class in part, then granted in part and denied in part the plaintiffs’ and defendant’s summary judgment motions, and addressed the motion to strike Hill’s declaration as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Defendant meet FWW requirements to pay under FWW? | Brantley argues premiums negate fixed salary and there was no clear mutual understanding. | Inspectorate asserts premiums do not destroy fixed salary and that a mutual understanding existed. | Plaintiffs’ motion granted; FWW violated due to premiums and lack of clear mutual understanding. |
| If FWW does not apply, how is unpaid overtime calculated? | Owed overtime calculated under default 40-hour week with time-and-a-half. | Regular rate based on actual hours worked; overtime at 1.5 times that rate. | Damages calculated using regular rate based on actual hours; 40-hour-week method rejected. |
| Should liquidated damages be awarded? | Defendant’s bad faith warrants liquidated damages. | Good faith and reasonable grounds negate liquidated damages. | Plaintiffs granted liquidated damages; Defendant denied for liquidated damages. |
| What statute of limitations applies? | Three-year period should apply for willful violations. | Two-year period governs absent willfulness. | Two-year statute of limitations applies; three-year not applicable. |
Key Cases Cited
- Blackmon v. Brookshire Grocery Co., 835 F.2d 1135 (5th Cir. 1988) (fixed salary for varying hours determines regular rate under FWW)
- Singer v. City of Waco, Tex., 324 F.3d 813 (5th Cir. 2003) (determines hourly rate by what the contract intends to compensate)
- Yourman v. Dinkins, 865 F. Supp. 154 (S.D.N.Y. 1994) (hours used to set weekly pay may reflect actual schedules and paystubs)