Chavez v. City of Albuquerque
630 F.3d 1300
| 10th Cir. | 2011Background
- Collective action under 29 U.S.C. § 216(b) by City of Albuquerque employees alleging FLSA overtime violations.
- Employees contend CBAs provide add-ons and leave buy-backs; some buy-backs can be sold back to the City.
- City calculates FLSA entitlements and CBAs’ entitlements, paying the greater amount; police not subject to FLSA calculation.
- District court held vacation buy-backs in regular rate; sick leave buy-backs included; vacation buy-backs error remediable.
- Disputed issues include divisor for regular rate, multiplier, and credits against FLSA liability; trial on some issues.
- appellate court affirm in part, reverse as to vacation buy-back inclusion, remand for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Include vacation buy-backs in regular rate? | Chavez: buy-backs must be in regular rate. | City: vacation buy-backs not in regular rate. | Vacation buy-backs not part of regular rate. |
| Sick leave buy-backs in regular rate? | Chavez: sick leave buy-backs should be included. | City: sick leave buy-backs may be included. | Sick leave buy-backs included in regular rate. |
| Divisor for regular rate calculation? | Use normal workweek divisor. | Use actual hours worked divisor. | Actual hours worked divisor is proper. |
| Proper multiplier for overtime? | One-and-one-half multiplier required for overtime. | One-half multiplier suffices with regular rate first. | One-half multiplier compliant. |
| Can City credit other payments against FLSA liability? | Credits may reduce liability where applicable. | Credits only if there is FLSA liability. | No improper credits found; credits not shown. |
Key Cases Cited
- Bay Ridge Operating Co. v. Aaron, 334 U.S. 446 (1948) (overtime purpose and regular rate importance)
- Walling v. Youngerman-Reynolds Hardwood Co., 325 U.S. 419 (1945) (regular rate as keystone to overtime)
- Walling v. Helmerich & Payne, 323 U.S. 37 (1944) (regular rate includes actual remuneration for hours worked)
- O'Brien v. Town of Agawam, 350 F.3d 279 (1st Cir. 2003) (CBAs do not control FLSA regular rate)
- Acton v. City of Columbia, Mo., 436 F.3d 969 (8th Cir. 2006) (sick time buy-back included in regular rate)
- Featsent v. City of Youngstown, 70 F.3d 900 (6th Cir. 1995) (sick time buy-back not part of regular rate)
- Wheeler v. Hampton Township, 399 F.3d 238 (3d Cir. 2005) (distinguishes non-work pay vs regular rate; CBA context)